5 Steps on Importing Goods in Kenya For Resale in the Kenyan Market
Ever wanted to venture into the lucrative business of importing items from countries like China, Dubai, Turkey, Egypt, USA, United Kingdom, India among others? To help you get it right if you are not familiar with this process, below are 5 steps on importing goods in Kenya for resale in the Kenyan market. One of the most effective ways to grow your small business is through importing. You can for instance buy some quality clothes in Turkey to boost your current stock, import sanitary ware from China for your small hardware or even get some seeds from South Africa for your agri-business project.
You cannot afford to restrict your chances now that the globe has become a small community. However, the main query on your mind right now would be, “How can you transport these goods into Kenyan soil?” Everything you need to know is explained in this post so that you can import products and clear them at the Mombasa port.
5 Steps on Importing Goods in Kenya For Resale in the Kenyan Market
Step 1: Identify the Goods That You Wish To Import
China, Japan, Turkey, Dubai, and South Africa are a few of the most popular countries for small business owners to import goods from. China is well known for its electronics, electrical fittings, sanitary ware, and packaging materials (agriculture commodities).
You have the option of traveling to these nations or shopping online on websites like Alibaba, AliExpress, Amazon, EBay or Made in China.
Step 2: Link Up With a Local Clearing and Forwarding Agent
Finding a clearing and forward agent is crucial after you’ve finished your shopping. This agent’s responsibility is to see to it that your items are delivered to your home and are picked up at the Mombasa port. Before finalizing the shipping arrangement, they will counsel you on all options and even make crucial suggestions.
Step 3: Shipping Your items
The vendor will package and deliver your chosen items to a shipping company as soon as you make payment for them. The shipping firm will provide your cargo a unique number, which will be automatically entered into the KWATOS system operated by the Kenya Ports Authority.
You will be able to follow the progress of your goods using KWATOS to find out where they are. You can travel to Mombasa after the ship docks to begin the clearance process (of course with the assistance of your clearing and forwarding agent).
Step 4: Start the Clearing Process
You must apply for something called a Bill of Lading now that your products are on Kenyan territory. The shipping business will be required to deliver your cargo to the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) upon receipt of this paperwork (KRA).
There will also be a Release Order issued. Can you go ahead and claim your items now that they are in the safe hands of Kenyans? Wait a minute.
Step 5: Pay the applicable duties
Depending on the kind of goods you imported, you’ll have to pay a certain amount in duties and taxes. You must pay import duty, excise duty, an import declaration fee, and VAT, for example, if you are importing alcoholic beverages.
You only need to pay the import declaration fee—2.25% of the total worth of the imported products or Ksh. 5,000, whichever is higher—if you are importing new computers, printers, and books. As a general rule, duty-free goods are less expensive to import into the country. Here is a list of some of them.
Farm seeds, diapers, energy-saving bulbs, new computers, printers, and solar-powered equipment, among other things.
Please be aware that in addition to the import declaration fee, you will also be charged a 25% excise duty tax if you are importing used computers.
Step 6: Moving the goods into the long room
Once duty and taxes have been paid, official receipts will be given to you, and your products will then be brought to the “Long Room.” Simply put, The Long Room is a unique division of the Kenya Ports Authority and KRA that examines everything that enters the nation.
Naturally, if there are no legal problems with your cargo or discrepancies, you won’t need to worry about a thing because you will be approved and given the go-ahead.
Step 7: Collecting Your Items
Your cargo will eventually be prepared for pickup. As mentioned above, you must carry all receipts and documents issued during steps 4, 5, and 6 to the KPA gates, particularly the Bill of Lading, Custom Duty/Tax Receipts, Custom Release Order, and Delivery Order. The gate will then be opened for you, allowing you to access the yard and get your items.
Last Word
A clearing and forward agency will carry out the majority of the aforementioned actions on your behalf. However, we recognize that it is crucial for every entrepreneur to be aware of them in order to avoid losing money through dishonest business practices or a lack of knowledge.
Don’t just rely on the above 5 steps on importing goods in Kenya for resale in the Kenyan market. Make sure you at least comprehend how items are cleared at the Mombasa port before placing your next consignment of orders for your small corporation.
Important to note:
That the information above 5 steps on importing goods in Kenya for resale in the Kenyan market might not be the most current because conditions, regulations and policies keep changing often. You have a responsibility to do your due diligence and research on the latest and most accurate information.
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