How to import from China to Kenya?

Kenya and China maintain a strong bilateral trade relationship, which is growing.

As of today, China is the largest exporter of goods to Africa, Asia, the Americas and Europe.

These have created many opportunities for Kenyan entrepreneurs, especially in the import business.

Still, it has never been imported from China to Kenya easy for many Kenyans.

This guide provides a step-by-step overview of the import processes, applicable costs, and necessary documents to help you successfully import goods from China to Kenya.

How Do I Import Goods from China to Kenya?

1. Determine Product and Market Demand

Before starting the import process, first identify the type of products you want to import and ensure there is sufficient demand for them in the Kenyan market.

Products such as electronics, machinery, textiles, furniture, and toys have high demand in Kenya.

Conduct market research to understand whether these products have potential locally, considering competition and consumer preferences.

The table shows the growing demand for electronics, clothing, building materials, food and beverages, and personal care products in Kenya.

You need to develop effective marketing strategies based on consumer preferences and market competition to succeed in the competitive environment.

Additionally, ensure that the products comply with Kenyan regulatory standards.

Certain specialized goods, such as electronics or pharmaceuticals, may require certification or permits from the Kenya Bureau of Standards (KEBS).

2. Find Reliable Suppliers

Once you have determined the products, the next step is to find reliable Chinese suppliers.

You can use platforms like Alibaba, Made-in-China, and 1688.com, which have a large number of suppliers available.

When selecting suppliers, it is recommended to conduct background checks and review their reputation and customer feedback.

Use the buyer protection policies provided by the platforms to ensure safe transactions.

2.1Research Your Products and Suppliers

• • Sample Testing: Request product samples from the suppliers. This allows you to assess their quality and verify if they meet Kenyan standards. Ensure that the samples meet your expectations and comply with legal requirements.
  • Quality Assessment: Evaluate the overall quality of the products based on the samples. Since Chinese manufacturers tend to produce items that fit within your budget, quality may sometimes be affected. Consider factors such as durability, functionality, and safety. Verify that the goods comply with industry standards and regulations.
  • Supplier Experience: Research the background and expertise of the manufacturers. Look for suppliers with a good track record and positive reviews. Experienced manufacturers are more likely to provide reliable products.

• If possible, consider visiting the factories in person to verify production capacity and product quality.
• If you are unfamiliar with the Chinese supply chain, it is advisable to hire a local sourcing agent.

They can assist you in verifying suppliers, negotiating prices, and conducting quality control, thereby reducing procurement risks.

The image below shows an example of a great supplier from Ali 1688, with more than 100,000 products sold, 2000 reviews with a 5 star rating.

By checking supplier ratings and trade guarantees, you can initially verify their credibility.

2.2 Choose a Reliable Sourcing Agent

Working with a reliable sourcing agent can greatly simplify the process of importing goods from China to Kenya.

Here are some key considerations when selecting a sourcing agent:

• • Professionalism and Experience: Ensure that the agent has recognized expertise in the industry and a proven track record of successful import operations.
  • Market Knowledge: The agent should have an in-depth understanding of the Chinese market to source high-quality products that meet your requirements.
  • Reputation and Communication: Look for agents who are trustworthy and maintain transparent communication throughout the sourcing and shipping process.

3. Place the Initial Orders

Once you have selected your products and found suitable suppliers and shipping agents, you can place your order.

Retail online platforms offer a quick and easy checkout process, but for wholesalers, this process can be somewhat lengthy, involving negotiations, sending samples, discussing minimum order quantities, and more.

These aspects will be discussed in detail below:

• Price: Ensure clarity on the cost per unit, shipping fees, and any additional charges.
• Payment Method: Common payment methods include T/T (Telegraphic Transfer), PayPal, Alipay, or through the platform’s escrow service.
• Delivery Time: Confirm that the supplier can meet your delivery time requirements, especially for time-sensitive orders.
• Minimum Order Quantity (MOQ): Clarify the quantity you are ordering to avoid unnecessary misunderstandings.
• Quality Assessment and Compliance: Before placing an order, thoroughly assess the quality of the products. Ensure that they meet your expectations and comply with Kenya’s import regulations. Request product samples from suppliers to verify their quality and suitability.

Once negotiations are finalized, the supplier will provide you with a pro forma invoice detailing the product specifications, quantities, shipping terms, and prices.

4. Calculate the Import Costs

In addition to the cost of purchasing goods, there are other expenses involved when importing from China to Kenya.

You will need to pay for shipping, customs clearance, duties and taxes, inspections, warehousing, and other costs.

Calculating import costs not only allows you to easily predict your profits before importing products but also helps you better organize your budget and avoid being scammed.

To assess the total cost of imported goods, consider the following:

• Product Cost: First, you need to understand the cost of the products in China. Compare product prices from different suppliers and research the price range for your expected products.
• Duties and Taxes: Understand the applicable duties based on the type of goods.
• Logistics Costs: Include costs associated with procurement, packaging, and freight forwarding.
• Container Costs: Consider inland transportation and port fees. 
• Choice of International Trade Terms: Choose between FOB (Free on Board), CIF (Cost, Insurance, and Freight), or CFR (Cost and Freight), as this will affect the total cost.

4.1 Import Fees and Taxes

In Kenya, customs duties are levied on all imported goods.

Import duties and taxes are calculated based on the CIF (Cost, Insurance, and Freight) value of the goods. Major fees include:

• • Sales Tax: Ranges from 0% to 100%, with an average rate of 25%; the current sales tax is 16%.
  • Excise Tax: Mainly applicable to goods such as tobacco and alcoholic beverages, with specific rates set for different categories.
  • Import Clearance Fee: Charged at 2.25% of the CIF value or a minimum of 5,000 Kenyan Shillings.

4.2 What is the Cheapest Way to Ship from China to Kenya?

Shipping costs are one of the largest expenses in the import process.

The choice of the most cost-effective shipping method depends on the volume, urgency, and nature of the goods.

Main Shipping Methods

• • Sea Freight (FCL or LCL)

    • Full Container Load (FCL): Suitable for large imports. FCL allows you to rent an entire container, reducing unit costs as quantity increases. For bulk goods, FCL is more cost-effective, and you can better control shipping times.
    • Less than Container Load (LCL): If the quantity is smaller, LCL allows sharing container space with other importers. While suitable for small shipments, it may incur additional handling and consolidation fees.
    • Cost: Sea freight is typically the cheapest shipping method from China to Kenya, with average shipping costs for a 40-foot container ranging from $1,500 to $2,500, depending on the port of departure, season, and type of goods.
    • Time: Sea freight takes longer, averaging between 30 to 45 days.

     

  • Air Freight

    • Air freight is faster than sea freight and is suitable for small, high-value, urgent goods, but the costs are relatively high.
    • Cost: Air freight charges are typically calculated by weight and volume, ranging from $4 to $8 per kilogram, suitable for high-margin products.
    • Time: Average air freight time is 5-10 days.

• • Courier Services

    • Companies like DHL, FedEx, and UPS provide international courier services suitable for small packages, although they are more expensive.
    • Cost: Courier service fees are about $5 to $10 per kilogram, depending on the service level and destination.
    • Time: Delivery time for courier services is typically 3-7 days.

5. Customs Clearance in Kenya

Before shipping, ensure that your goods comply with Kenyan import regulations and obtain necessary documents, such as:

• Pre-Export Verification of Conformity (PVoC): Certain products (like electronics, textiles, and toys) require PVoC and a Certificate of Conformity (CoC) issued by the Kenya Bureau of Standards (KEBS) to demonstrate compliance with Kenyan standards.
• Import Declaration Form (IDF): This form is issued by the Kenya Revenue Authority (KRA) and must be filled out for all imported goods. It includes details about the nature and value of the goods.
• Commercial Invoice and Bill of Lading/Air Waybill: These documents are used for customs clearance and provide detailed information about the products, shipping methods, and destination.

5.1 Pay Import Duties and Value Added Tax:

Kenya imposes customs duties, Value Added Tax (VAT), and excise duties on certain imported goods. The specific rates depend on the type of goods:

• • Customs Duties: Typically range from 0-25%.
  • Value Added Tax: Currently at 16%.
  • Excise Duties: Applicable to specific products, such as alcohol, fuel, or luxury goods.

After paying the relevant fees using the KRA’s Simba System, your goods can be cleared through customs.

6. Transport Goods to Your Location

After clearing customs, you can arrange for the transportation of goods from the port or airport to your business location. You can choose to hire a logistics company or manage the transportation process yourself.

What Documents Are Required for Importing Goods from China to Kenney?

Having the correct documentation is crucial for smooth customs clearance.

Below are the main documents required for importing from China to Kenya:

• Import Declaration Form (IDF):This is the first step in the import process and must be completed online through the Kenya Revenue Authority system. The IDF contains detailed information about the goods, such as type and value.
• Commercial Invoice: A commercial invoice provided by the supplier detailing the products, prices, and payment terms. It serves as the official receipt for your purchase.
• Bill of Lading (for Sea Freight) or Air Waybill (for Air Freight):These are transportation documents that provide detailed information about the shipping method, content of the goods, origin, and destination.
• Packing List: This document details the contents of each package, including quantity, weight, and dimensions.
• Certificate of Conformity (CoC):Issued by the Kenya Bureau of Standards (KEBS), it certifies that your goods meet Kenyan standards. To obtain this certificate, you need to undergo Pre-Export Verification of Conformity (PVoC) before shipping.
• Insurance Policy: It is advisable to purchase insurance for high-value goods to prevent damage or loss during transportation. An insurance policy may be required for customs clearance.
• Customs Declaration Form: Prepared by your customs agent, this form outlines detailed information about the goods and is necessary for customs clearance.

Conclusion

Importing goods from China to Kenya involves multiple steps, from selecting reliable suppliers to handling customs clearance.

Choosing the appropriate shipping method depends on your budget and the volume of goods.

For large shipments, sea freight is usually the most cost-effective option, while small, high-value goods are suited for air freight.

Having the correct documentation is essential for smooth customs clearance and can help you avoid delays and fines.

By understanding these key points, you can streamline the import process and fully leverage the opportunities that come with sourcing goods from China.

If you have other questions or need help, as a local purchasing company we will handle goods imported from China into Kenya.

This has been favored by many overseas importers and buyers. Contact us right now!

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