Stories about how Kenyans made millions importing by sea and selling used clothes and used shoes from the USA are not uncommon.
I once fell into this trade and I have a few tips to share with you before you burn your fingers.
1. Importing Used Clothes to Kenya
Popularly known as Mitumba, the used clothes business is one of the most coveted businesses in Kenya from the USA.
For the sake of simplicity, I'll discuss the requirements of a 40-foot container shipment.
A. Pre-importation Fumigation Requirements
All used clothes heading to Kenya require stringent fumigation to eradicate any pests or diseases. The fumigation process needs to be undertaken by a recognized institution. Once completed, a certificate is issued. Without this certificate, Kenyan customs and KEBS will not clear your goods.
Sorting: Clothes must be diligently sorted. For instance, men's shirts, women's dresses, children's attire, etc., should all be separated.
Packaging Material: Transparent or semi-transparent bales are mandatory. This transparency allows customs officials to inspect without necessarily unpacking.
Bale Weight: It's crucial to adhere to the 100 kg per bale rule. Overpacking can lead to customs issues and may strain the clothes, leading to damages.
Labeling: Proper labels detailing the type of clothes, weight, and quantity are essential.
C. Pre-importation Inspection and Certificate of Conformity
Engaging a certified inspection agent is paramount. They ensure the clothes match Kenya's required standards. If the batch passes, the agent issues a Certificate of Conformity (CoC), which is needed for clearance in Kenya.
D. Clearing Procedures and Taxes for a 40 Feet Container
The Kenya Revenue Authority (KRA) is responsible for clearing imported goods. As of 2022, the taxes levied on used clothes include:
Import Duty: Approximately 35% of the Customs Value
VAT: 16%
Import Declaration Fee (IDF): 2.25% of CIF value (Cost, Insurance, and Freight)
Railway Development Levy (RDL): 1.5% of CIF value
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Importing Used Shoes to Kenya: A Detailed Examination
A. Pre-importation Fumigation Requirements
Importance: Just like clothes, used shoes can harbor pests, larvae, and other contaminants that could potentially harm the local ecosystem in Kenya.
Procedure:
Engage with an accredited fumigation service provider in the USA.
Ensure the entire consignment undergoes thorough fumigation.
On completion, the provider will issue a fumigation certificate. Retain this certificate, as it is a critical document during the clearing process in Kenya.
B. Pre-importation Packaging Guidelines
Sorting:
Proper categorization is fundamental to ease the resale process and facilitate smoother customs inspections. Sort the shoes into distinct categories like men’s formal, women’s heels, children's shoes, athletic sneakers, and so on.
Pairs should be meticulously matched, ensuring there are no odd pairs.
Packaging Material:
Given that customs officers may wish to inspect the consignment, shoes should be packed in transparent or semi-transparent durable sacks.
To prevent mismatches, it's advisable to tie each pair together, either using a strong twine or zip ties.
Weight and Volume Guidelines:
Ideally, each sack should not weigh more than 25 kg to facilitate easier handling and minimize wear during transit.
Ensure there's a bit of space in each sack to prevent excessive pressure on the shoes, which might cause deformities or damage.
Quality Control:
It's essential to ensure that the shoes being shipped are of saleable quality. Severely worn out, torn, or overly damaged shoes may be rejected during the pre-importation inspection.
It's advisable to have a quality checklist, especially if sourcing shoes from multiple suppliers.
Labeling:
Every sack should bear a clear label. This label should detail the type of shoes (e.g., men’s formal), the number of pairs, and the weight.
Using waterproof labels ensures that the information remains intact regardless of the weather conditions during shipping.
C. Pre-importation Inspection and Certificate of Conformity
Procedure:
Engage a recognized inspection agency accredited to evaluate shipments destined for Kenya.
They'll meticulously check the quality, count, and overall condition of the shoes.
If everything aligns with Kenyan import standards, they'll issue a Certificate of Conformity (CoC). This document is essential for customs clearance in Kenya.
D. Clearing Procedures and Taxes for a 40 Feet Container
Arrival and Documentation:
Once your shipment docks at the port in Mombasa, the Kenya Revenue Authority (KRA) becomes your primary point of engagement.
Present all necessary documentation: shipping manifest, fumigation certificate, and the CoC.
Taxes and Levies:
Import Duty: Typically around 35% of the Customs Value.
VAT: Stands at 16%.
Import Declaration Fee (IDF): This is 2.25% of the CIF value (Cost, Insurance, Freight).
Railway Development Levy (RDL): This is usually 1.5% of the CIF value.
It's wise to engage a reputable clearing agent in Kenya. They'll provide updated information on any changes in the tax regime, ensure compliance, and facilitate smoother clearing of your consignment.
3. Importing Used Bicycles and Toys to Kenya From USA
A. Pre-importation Fumigation Requirements
Importance: To ensure that bicycles and toys, especially those made of fabric or plush material, do not carry pests or contaminants.
Procedure:
Hire a certified fumigation service in the USA.
Once fumigated, a certificate is issued. This certificate is mandatory for the clearing process in Kenya.
B. Pre-importation Packaging Guidelines
Sorting:
Bicycles: Should be categorized by type, e.g., mountain bikes, road bikes, children's bikes.
Bicycles: Should be partially disassembled (e.g., removal of pedals, handlebars turned parallel) to save space. They should be wrapped in protective bubble wrap or similar material.
Toys: Durable boxes or crates, with fragile items adequately protected.
Labeling:
Each package should be labeled with its contents and, if possible, the intended age group for the toys.
C. Pre-importation Inspection and Certificate of Conformity
Engage with an inspection agency. They'll check the quality and safety standards, especially for toys. A CoC will be issued if the items meet Kenyan import standards.
D. Clearing Procedures and Taxes
The KRA oversees clearance. Duties and taxes for bicycles and toys may differ. Typically, bicycles might attract a lower duty due to their role in transportation and empowerment of individuals in remote areas.
4. Importing Small Machines, Generators, and Well Drills to Kenya From USA
A. Pre-importation Requirements
Ensure that the machines and generators are in working condition. Well drills, given their interaction with the ground, should be thoroughly cleaned to avoid soil contamination.
B. Packaging Guidelines
Machines and Generators:
Should be securely crated with protective wrapping to prevent damage.
Ensure all parts, especially detachable ones, are well-labeled and secured.
Well Drills:
These should be disassembled where possible, cleaned, and packed securely.
C. Pre-importation Inspection and Certificate of Conformity
The inspection agency will assess the functionality, safety, and quality of the machines. Upon successful inspection, a CoC is provided.
D. Clearing Procedures and Taxes
Machinery attracts specific duties, often based on their utility and industrial importance. Consult with the KRA for exact figures.
5. Importing Tractors and Farming Equipment to Kenya
A. Pre-importation Requirements
Ensure machinery is functional. Clean thoroughly, especially soil-engaging parts like plows, to prevent foreign soil contamination.
B. Packaging Guidelines
Larger machinery may be shipped as is, but ensure smaller parts or attachments are securely packaged and labeled.
C. Pre-importation Inspection and CoC
The inspection agency evaluates the machinery's condition and adherence to standards. A CoC is issued upon successful inspection.
D. Clearing Procedures and Taxes
Farm equipment might benefit from tax exemptions or reduced rates to promote agriculture. However, it's crucial to liaise with KRA for precise figures.
6. Importing Used and Refurbished Medical Equipment to Kenya
A. Pre-importation Requirements
Ensure equipment is functional, and calibration is up-to-date. Acquire relevant documentation indicating the equipment's safety, efficacy, and maintenance history.
B. Packaging Guidelines
Medical equipment should be packed in sterile or sanitized conditions, in crates or boxes with protective padding.
C. Pre-importation Inspection and CoC
Given the sensitive nature of medical equipment, inspection is rigorous. Equipment must meet both safety and operational standards.
D. Clearing Procedures and Taxes
Medical equipment is crucial and might have tax exemptions or reductions. However, they're subject to regulation by Kenya's Ministry of Health and the Pharmacy and Poisons Board. Ensure compliance with all their stipulations.
Shipping Costs from 3 Major Ports to Mombasa (2022 Estimates)
Port of New York and New Jersey to Mombasa: $3,500 - $4,500 for a 40-foot container.
Port of Los Angeles to Mombasa: $4,000 - $5,000 for a 40-foot container.
Port of Houston to Mombasa: $4,200 - $5,200 for a 40-foot container.
These costs are fluid and depend on shipping lines, seasons, geopolitical events, and other external factors. Before making any financial commitments, it's imperative to get fresh quotes from your shipping line.
