The Effect of logistics regulatory restrictiveness on the performance of freight forwarding companies in Kenya
Date
2025
Authors
Masya, B.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Covid 19 restrictions imposed by the government have resulted in significant impact to the economy and particularly to Small and Medium Sized Enterprises (SMEs). The selection of some interventions over others necessitates assessment of the rationale behind the various regulations that were put in place and how these have impacted specific industries. This study focused on the effect of government logistics regulatory restrictiveness on the performance of freight forwarding companies in Kenya. The objectives of the study were as follows: To determine the effect of customs restrictiveness on the performance of freight forwarding companies in Kenya; To determine the effect of investment restrictiveness on the performance of freight forwarding companies in Kenya. To determine the effect of movement of people restrictiveness on the performance of freight forwarding companies in Kenya. To determine the effect of road transport restrictiveness on the performance of freight forwarding companies in Kenya. The bulk of cargo movement in Africa is facilitated via road transportation with freight forwarding companies playing a central role in the distribution process. Two main theories are considered in this study – The Private Interest Theory of Regulation and the Balanced Scorecard. The current study utilized a descriptive-cross-sectional research design. There are 868 licensed freight forwarding companies in Kenya; managers from these organizations formed the population of the current study. Data, from 256 sampled respondents, was collected through closed-ended structured questionnaire and data analysis, both descriptive and inferential statistics, was performed. The study was rooted in the private interest theory and the Balanced Scorecard. Regression results indicated that the impact of the independent variables, by magnitude in descending order was as follows – custom restrictiveness, movement of people restrictiveness and finally investment restrictiveness. Road transport restrictiveness was not found to be a significant predictor of performance. Incomplete. The study concluded that customs and movement of people restrictiveness significantly impacts the performance of freight forwarding companies in Kenya, with customs restrictiveness having the most profound effect. Investment restrictiveness and road transport restrictiveness were found to have less impact. Limitations included reliance on self-reported data, which may introduce bias, and the focus on Nairobi, limiting generalizability across Kenya or other regions. Future research is recommended to explore the longitudinal impact of regulatory restrictiveness on freight forwarding performance, including qualitative studies to understand the nuanced impacts of such regulations. Additionally, expanding the geographical scope beyond Nairobi to include other major freight corridors in Kenya would provide a more comprehensive understanding of the regulatory impacts on the freight forwarding industry.
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Citation
Masya, B. (2025). The Effect of logistics regulatory restrictiveness on the performance of freight forwarding companies in Kenya [Strathmore University]. http://hdl.handle.net/11071/15755