Importing from China to Kenya: The Complete Guide

Kenya and China share a bilateral trade relationship that keeps strengthening day by day.

China’s economy as we know is also ever growing.

The country as of today is the largest exporter of goods to regions across Africa, Asia, America, and Europe.

These, among other things, has created a host of opportunities for Kenyan entrepreneurs, especially in the import business.

Nonetheless, for many Kenyans, importing from China to Kenya has never been mean meat.

Sourcing, shipping, and customs clearance are some of the challenges that Kenyan importers have had to deal with over the years.

It is for these reasons, therefore, plus the many questions we’ve been getting on how to import from China to Kenya that I’ve written this guide.

Here, I intend to share all the information relevant to the import from China to Kenya business.

What are the paperwork requirements for importing from China to Kenya?

You will need to file quite a number of documents to be able to import goods from China to Kenya successfully.

These documents include;
1. Certificate of origin
2. Bill of lading/airway bill
3. Commercial invoice
4. Inspection certificate
5. ISM (imports standard mark) certificate
6. Packing list
7. Import license

Which are the best shipping companies from China to Kenya?

There are many shipping companies from China to Kenya, and all of these provide quality shipping services.

The most popular ones however are:
1. China ocean shipping company (COSCO)
2. EMC(evergreen marine corporation)
3. Hapag Lloyd
4. CMA
5. MSC

Which is the cheapest way to ship imports from China to Kenya?

Honestly, there is no cheapest shipping method.

It all depends on what you’re shipping, how you’re shipping it and which company is shipping it.

To ship 1000kgs of goods by air will be costly than if you shipped the same shipment by sea.

What considerations should I make when choosing a sourcing agent from China to Kenya?

Professionalism, experience, market knowledge, credibility, and good communication are excellent indicators of a good sourcing agent.

I hope by the end of the read, you’ll be an expert in this.

So let’s begin.

Chapter 1: Best Products to Import from China to Kenya

As I said, Kenya enjoys close trade ties with China.

As a matter of fact, close to 60% of Kenyan imports are from China.

In 2017 alone, Kenyan imports from China made up an estimated USD 3.8 billion.

This is in 2017 alone, and the figure is said to have jumped by 20% from the USD 3.4 billion recorded in 2016.

Now, with the way things are going between China and Kenya, the trade relationship shared is only bound to strengthen.

This means that Kenyan entrepreneurs should look forward to more business opportunities arising from this relationship.

For now, these are the most popular import from China to Kenya businesses you can explore;

1. Import diapers from China to Kenya

The diaper business is one that’s currently booming in Kenya.

Diapers are a necessity today that thousands of families spend hundreds of dollars on for their infant children.

This demand, therefore, presents a very ripe opportunity for importers from China to Kenya.

You should thus take advantage of the hassle that mothers are going through in accessing baby diapers.

And, not just accessing diapers but diapers that are suitable for their children at an affordable price.

So to venture into the diaper importation business successfully, you should do three key things.

First of all, identify your market, find a suitable brand and supplier and then venture out.

That’s it.

2. Importing building material from China to Kenya

Like the diaper business, the real estate industry is also rapidly expanding in Kenya.

Everybody is spending on construction materials in Kenya today.

And, this I must attribute to the rapidly growing population, rural-urban migration and the need for better housing and accommodation.

The huge need for accommodation and rapid urbanization are the most factors that are forcing governments and investors to build.

Due to this, I can tell you for sure that building materials can fetch you the right amount of profit.

Cement, wood, steel, ceramic tiles, prefabs, glass, electrical and plumbing fittings are the most in demand.

So you have no excuse in this, trust me.

The idea of founding a building material importation business in Kenya is still a soft spot that you can take on.

All you need to do is to put in a little more effort than everyone else in the industry.

3. Importing clothes from China to Kenya

The clothes importation business is a successful venture not just in Kenya but all over the world.

This is primarily because clothing is one of the basic human needs.

We can’t do without clothing, and that means that demand will always be there.

Unfortunately, success in this business does not come easy, especially when importing to Kenya.

You see, the Kenyan government restricts the importation of clothing as a means to protect and boost the local textile industry.

Therefore, you must adhere to all the Kenyan customs requirements for clothes importation which include licensing and adherence to quality.

4. Importing cars from China to Kenya

Importation of cars is one of the most lucrative businesses in Kenya.

This is especially if you own a car bazaar and are considering sourcing for your cars from abroad.

Used cars are especially fast moving in Kenya.

Why?

They are easy to find and sell at cheap prices-Kenyans love affordable products.

The best part?

Times and needs change.

And thanks to technology, people will always dispose of old cars and acquire new ones.

Thus, providing an opportunity for you to import and sell used or even new cars.

You can import and sell cars from any country that’s allied to Kenya.

Cars from China are notably easier to get, import and sell.

5. Importing electronic from China to Kenya

Electronics whether new or used are hot sellers in Kenya.

You can import a wide range of these from smartphones, computers, kitchen appliances, etc.

Chinese suppliers sell these items at very affordable prices.

You can import them and resell in Kenya at a profit.

Note that electronics importation doesn’t have to be for business purposes only.

You can also import them for personal use.

If you’re building a house and need new electronics,i.e. TV’s, fridge, kettles, cooker, etc. you can easily import good quality products from China.

Just remember that when importing electronics for personal use, the landing price of the goods shouldn’t be over the top when compared to local prices.

6. Importing watches from China to Kenya

If you’re looking for an import business that doesn’t cost much to start and is easy to manage, then this is it.

Watches don’t cost much.

With USD 300, you can quickly start and set up a lucrative wristwatch business.

USD 300 may seem small for an importation business, but trust me with small Chinese merchandise like watches, this is more than enough.

Besides, you don’t even need to set up a store or shop from where to sell the watches.

You can easily do this from the comfort of your home.

All you’ll need is a good computer, excellent internet connection and above all excellent customer service skills.

7. Importing furniture from China to Kenya

Quality furniture is very profitable in Kenya.

You can import anything from office desks, chairs, beds, sofa sets, entertainment consoles, tables, dining sets, and so on.

Like electronics, you can also import quality furniture from China to Kenya for domestic use.

I can bet you that Chinese furniture is unique.

They present a certain elegance and beauty that you’ll love to have in your home.

8. Importing phones from China to Kenya

It is apparent that Kenya is not yet manufacturing phones.

While this is sad, it is also great as it provides a lucrative business opportunity for entrepreneurs.

Bearing in mind of how affordable Chinese phones are, importing them and selling here in Kenya can be very profitable.

9. Importing shoes from China to Kenya

Shoes are as in demand as clothes in Kenya.

According to the Kenya Bureau of Standards (KEBS), the annual demand for shoes in Kenya stands at 24 million to 30 million pairs.

This is a demand that the local industry can’t meet on its own- the local industry currently produces just about 4 million pairs annually.

The deficit, therefore, has to be filled with imports from other countries like China.

Although there is mistrust among Kenyans for China-made shoes, the market response is not at all bad for quality wear.

So if you’re venturing into the importation of shoes, you’ll need to pay attention to quality and price affordability.

These are the two things that will ensure your success in the business.

10. Importing tiles from China to Kenya

We all know how much interior décor is valued in Kenya today.

Tiles, in this case, are highly valued in ensuring quality interior decors for homes and businesses.

And where else to import the tiles than from the world leading ceramic tiles manufacturer, which is China.

I promise you, the wholesale prices in China are very cheap, and product availability is just excellent.

Besides, importing from China provides you with a wide array of designs to choose from.

As I said, you have no excuse not to succeed in importing goods from China to Kenya.

There are very many products whose importation you can venture in.

All you need is capital, a good supplier and good knowledge of the import business.

As you do this, remember that the business of importation from China to Kenya has its ups and downs.

But then, once you get established, everything becomes easy.

What about finding suppliers? Well, let’s find out below.

Chapter 2: Finding Suppliers for Kenya China Importers

Most Kenyan entrepreneurs find Chinese suppliers online.

It doesn’t matter whether they are buying in a large or small scale, the fact is that Kenyan importers seldom go to China to find suppliers.

You may wonder the reason for this; well, to be honest, the cost of traveling from Kenya to China is quite high.

This starts with the air ticket, accommodation, and transport fees.

That is just one reason; another is that finding a reliable and trustworthy Chinese supplier can be quite tough.

Unless, if you had already contacted potential suppliers before traveling to China.

Or, if you go directly to fairs, exhibitions and other places where suppliers are known to be found like Yiwu.

Now let me not scare you much because there is an upside to all this.

You see, with the advent of technology and the racing minds of the Chinese population, there are more convenient ways of locating trustworthy Chinese suppliers.

Allow me to explain some of these ways:

· Get AliExpress Suppliers

For small-scale importers, AliExpress is a perfect place to locate suppliers for Chinese merchandise.

If you’re starting or are looking to venture into drop shipping, AliExpress maybe an excellent place to begin with.

Maybe I should explain this a little bit.

AliExpress is an e-commerce platform for Chinese retailers.

Now, retail prices are often known to be over the top; but then, with AliExpress, the prices there are very affordable.

You can still buy goods on AliExpress and sell them back in Kenya at a good profit.

· Search for Alibaba Suppliers and Manufacturers

When looking for the best wholesale supplier, I recommend that you lookAlibaba’s way.

As you may be aware, Alibaba is the largest B2B site in the Far East and is known to contain valuable information about a majority of suppliers in it.

Nonetheless, you need to note that not all suppliers on Alibaba are top quality.

This means that you will have to do due diligence in ensuring that your only source for reliable and trustworthy suppliers.

We have an article has a section that explains more about finding and verifying suppliers on Alibaba.

Please read it for more insight.

· Use China Sourcing Agents

Alternatively, you can hire a sourcing agent from China to help you find suppliers and source for goods to import to Kenya.

To be honest, for someone who has little knowledge about the importation process from China to Kenya, this is a good option.

All you will need to do is identify a trustworthy sourcing agent, and they will do all the work for you.

They will identify the best supplier for your chosen product, source the goods and with your guidance arrange for shipping to Kenya.

Good news?

Finding a sourcing agent in China is no hard task as there are thousands of them waiting for your signal.

Just ensure that the agent you chose is professional, reliable and most of all trustworthy.

· Visit China Yourself

Now, the above are options on the internet.

But if you don’t want to source online or to work with a sourcing agent, there is a third option that you can explore.

This is to visit China yourself.

You see, you can get plenty of firsthand information about suppliers by attending some trade shows.

In China, the “Canton Fair” is known to be the largest trade fair and is held twice in a year.

Here, you can interact with clients and get to know the products they offer and even see them personally.

The bottom line here is that getting a Chinese supplier is not difficult.

The challenge is getting reliable suppliers.

And to run an efficient China to Kenya import business, you need to ensure that you have dependable suppliers.

This is both regarding quality and timely delivery of supplies.

Besides, you also need to pay attention to cost.

Allow me to explain this in detail below.

Chapter 3: Calculate Cost of Importing Goods from China to Kenya

Cost when importing from China to Kenya is a very critical element.

And, this being a business, it is essential that you get your math right.

You see, apart from the cost of buying goods, there are other costs that you’ll incur when importing from China to Kenya.

You will have to pay for shipping, clearance, duties and taxes, inspection, warehousing among other fees.

With this, it is essential to know how much you’re going to spend in the process of importation.

This way, you can easily predict your profits even before importing the product.

You don’t want to go through all the importation trouble only to find out that you’ve spent more on a product that you can sell it for.

Besides, knowing the costs of importation can also help you organize your budget better as well as avoid getting conned.

So here’s how to calculate the cost of importing goods from China to Kenya?

Step 1: Know Cost of Products in China

Before anything else, you need to know the cost of products in China.

Product prices vary depending on various factors including the type of product and supplier.

Now, to be able to calculate your product ‘landed cost” you need first to know how you’ll potentially spend on a product.

My advice for this would be that you do your research and compare product prices from different suppliers.

Go to Alibaba and find out the majority price range of the product.

Find out also from other platforms and then pick the average price.

So let’s say that the product ranges between USD 15-25 per unit.

The average cost should be about USD 20.

So use this to estimate how much it’ll cost you to import the product to Kenya from China.

Step 2: Calculate Kenya Import Duties and Taxes on Different Imports from China

When calculating the cost of goods importation, taxes and duties shouldn’t be ignored as they make up a large part of these costs.

You see, every country imposes duties and taxes on imports and Kenya is no different.

The only difference is the amount charged by each country for this tariff.

Kenya, in particular, imposes a tariff on all imports.

This tariff note is applied based on the harmonized system code and the requirements of the East African community.

Generally, the tariff for Kenyan imports ranges from 0-100% with an average of 25%.

Apart from this, imports into Kenya are also subject to VAT tax at a rate of 16%.

The VAT tax is determined based on the sum of the CIF value, duty and other taxes of the import products.

So when calculating your products’ landed cost, first find out the HS code for the product and its applicable tariff.

Then apply the VAT tax to this to get the applicable import tariff.

You can learn more from the Kenya Revenue Authority Website.

Step 3: Pay for Logistics Fee –Sourcing Products, Packaging, Labelling and Freight Forwarder

First of all, you will need to pay for the cost of sourcing products.

Then pay for the packaging, and labeling of the products.

Besides, there is also the freight forwarder fees that you will have to pay up when importing from China to Kenya.

So you see, it’s quite some costs.

This means that you need to be careful when estimating these costs as they make a significant percentage of your total cost of importation.

Step 4: Estimate the Cost of Shipping Container from China to Kenya

Like I said, getting your products from China to your doorstep in Kenya involves a myriad of costs.

First of all, you’ll have to pay for inland transportation costs which cater for transporting products from factory to port of loading.

Then cater to the export clearance cost in China.

After that comes the port to port freight cost and then the import clearance cost that you’ll pay in Kenya.

Other shipping costs will include warehousing, distribution inland transport in Kenya among other charges.

Remember that when importing from China to Kenya, shipping costs will be based on the incoterm used.

This means that your supplier in China can quote a product, including the cost of freight to the loading port in China, to the destination port in Kenya (including or excluding port charges) or including delivery to a specific location in Kenya,i.e. your doorstep.

So remember the sourcing costs when calculating the overall cost of importing a product from China to Kenya.

To get the math right, do the following;

i. Choose the mode of shipping from China to Kenya

Decide if you’re going to ship by or by air.

Also, decide if you’re shipping FCL or LCL.

Note that in all the cost of shopping will vary.

ii. Choose the best Incoterm when Shipping from China to Kenya

As I said, there are several incoterms used when shipping from China to Kenya.

FOB, CIF, are CFR however the most commonly used incoterms, and each of these has their pros and cons.

So choose the right incoterm for you, understand the terms of the incoterm and estimate the costing as per the incoterm.

iii. Airfreight shipping cost

Remember that airfreight cost is calculated based on the weight and volume you’re shipping.

Air carriers use what is known is known as a chargeable weight to calculate shipping costs.

Chargeable weight note is the higher weight between the actual weight and volumetric weight of the cargo.

And the cost of shipping is charged by Kg of goods.

iv. Shipping cost per container size

Well, in sea freight, goods are shipped in different types of containers.

There 20 ft., 40 ft. And 40 HQ containers.

Depending on the container you’re using to chip, the cost of shipping will vary greatly.

Also, it will depend on whether you’re shipping FCL or LCL.

FCL costs are calculated based on the volume of goods shipped.

Charges for shipping LCL are calculated like in air shipments.

Well, I don’t want to say much about this as we already a detailed guide in this regard.

Here it is: shipping from China to Kenya read it for more insight.

Chapter 4: Mode of Paying for Imports from China to Kenya

A lot of things can impact your success when importing from China to Kenya.

Among those things is how you choose to pay for the imports as one wrong move in this can lead to drawbacks.

Because of this, it is imperative for you to exercise extra caution when paying for imports from China to Kenya.

Now here is the thing; there are several payments options that you can use when importing from China.

However, not all of these options are safe nor convenient.

You just need to be able to identify a method that works for you at that particular time – a safe and convenient option.

In this chapter, therefore, I will look at some of the most common payment options used to pay for imports from China to Kenya.

· PayPal

When people talk about payment options for imports from China, PayPal always features among the top of the list.

You see, PayPal is a very popular payment service that is used far and wide.

It is convenient and most especially fast, thus readily acceptable by suppliers in China, especially those that are tech-savvy.

Besides, PayPal is very easy to use.

No matter if you are a seasoned or new-to-China importer, the interface is very user-friendly.

It is also safe, and there are several ways to fund it including funding via bank transfer, credit card, mobile payment, etc.

The only disadvantage with PayPal is that its fee is percentage based thus making it unsuitable for large transactions.

Unless if you agree that your supplier bears the PayPal fees which will also have an impact on your costing.

So generally, PayPal is best to use for smaller transactions.

· Letter of credit

A letter of credit or as its popularly known LOC is a form of insurance on payment for goods issued by your bank.

LOC among all other payment options for imports from China is by far the safest and most convenient.

If you’re engaging in large transactions, then LOCs are the best.

However, if you’re a small time trader, using a letter of credit for payment may not be your best option.

Why?

Well, first of all, it is because of the expensive bank charges per transaction.

Secondly, LOCs are quite complex and involve tedious paperwork.

If you’re new to China importer, understanding the details in a letter of credit may be problematic.

You may even be forced to hire a documentary credit specialist for consultation and compliance.

This is at least before you get a hang on how LOCs work.

Last but not least, not many suppliers like using letters of credit for transactions.

This is due to language barriers and the complexity of the documents.

So if you’re to use a letter of credit, I recommend you use it for large transactions and when dealing with large-medium sized suppliers.

· Credit card

Credit cards are hardly an option when it comes to paying for imports from China.

You see, unlike in America and Europe, credit cards are not readily accepted as a form of payment in the east.

Chinese suppliers, especially, are often reluctant about credit cards due to charge back issues and the high fees associated with them.

E-commerce websites and a few tech-oriented suppliers accept credit cards though.

So if you’re importing from either of these, then you might be lucky to use your credit card to pay for goods.

· Western union

Like credit cards, western union is also not readily accepted by Chinese suppliers as a payment option.

Mostly, this is because it is known to be a high-risk payment option for suppliers due to its anonymous nature.

You see, in methods like wire transfer, you get to know the billing address and name of the company you’re sending money to.

With Western Union, however, there is total anonymity as to whom you’re sending money.

This in its every sense is suspicious as it’s hard to tell if you’re dealing with a legitimate supplier or not.

Besides, there is very little recourse once you send money via western union.

So unless you’re sure that you’re dealing with a trusted supplier, avoid it as much as you can.

· Cash

Cash is significant as a form of payment. It is in China and will be for years to come.

It doesn’t matter the size of your transaction; cash can be used to pay for large, medium and large-sized imports.

Also, no matter if you’re personally in China or are using a sourcing agent, cash still works.

Suppliers love cash payments.

Importers love it too as it enables them to access relatively lower pricing for supplies.

Note however that like all other forms of payment, there is a disadvantage to paying by cash.

This is that it has minimal resource.

Thus, cash payments should be used to pay trusted suppliers and for smaller transactions.

· Escrow transfer

Escrow is quite similar to LOCs.

It is safe and convenient, especially for smaller transactions.

In China, Alipay is the most common escrow service.

Alibaba owns it, and it enables importers to pay for goods ordered via the website securely.

You may ask how an escrow transfer works.

Well, first of all, the escrow service looks into the transaction process.

It then receives and holds the payment until there is confirmation that goods have been received i