Whether you are looking to diversify your business or take advantage of lower production costs, importing from China to Kenya can be a valuable strategy for small business owners. However, before placing your first order, there are a few crucial factors to consider to ensure a smooth and profitable process.
Below are essential business tips to help you identify high-demand products and successfully import them into your small business in East Africa.
Step 1: Identify What to Import
As with any investment, it is essential to have a clear understanding of what you are venturing into before committing your resources. Focus on products with strong local demand and good resale potential.
Some examples include sanitary wares, plumbing fittings, electrical fittings, tiles, electronics, and affordable jewelry. Before proceeding, consult the customs office to confirm that your chosen products comply with Kenyan import regulations.
Additionally, ensure you have an active Kenya Revenue Authority (KRA) Personal Identification Number (PIN). If you don’t have one, visit the KRA website to apply. This is a necessary requirement for the customs clearance process once your goods arrive in the country.
Step 2: Find a Reliable Supplier
Websites such as Alibaba.com and Aliexpress.com provide access to an extensive database of Chinese manufacturers. Here, you can browse various product categories and compare different suppliers.
To avoid scams and ensure product quality, consider these precautions:
- Leverage local contacts: If you know any Kenyans living in China, they can help verify suppliers and conduct quality checks on your behalf.
- Request product samples: Before placing a bulk order, ask the supplier for a sample. Many suppliers provide free samples, though you may need to cover shipping costs (typically around $50 or Ksh4,500).
Step 3: Calculate the Total Cost of Importing
Since you are importing for resale, it is crucial to accurately estimate your costs before making a purchase. Apart from the supplier’s price, you need to account for expenses such as freight, customs clearance, duties, and inspection fees.
A simple way to estimate your total costs is to multiply the manufacturer’s price by 1.6. This will give you a rough idea of the final amount you’ll need to cover all expenses.
Example Calculation
If you plan to import watches worth Ksh50,000, your estimated total cost would be: 50,000 × 1.6 = Ksh80,000
This means you should budget approximately Ksh80,000 to cater for the entire importation process. If the cost and quality meet your expectations (after reviewing the sample), you can proceed with your order.
Step 4: Choose the Right Port and Shipping Method
Unlike Kenya, which primarily relies on Mombasa Port, China has multiple port cities, including Guangzhou, Tianjin, Qingdao, Shenzhen, Shanghai, Ningbo, and Dalian. Each of these cities has shipping agents that can facilitate delivery to Kenya and assist with customs clearance.
Some reliable courier and cargo companies include:
- Salihiya Cargo
- DHL
- EMS
Once you have selected a port and courier company, instruct your supplier to deliver your goods to the shipping agent’s office. You can then negotiate the terms of shipping and estimated delivery timelines.
Step 5: Collect Your Goods in Kenya
If your shipment is delivered by air, you will need to collect it from the nearest international airport. For sea shipments, you will collect your goods from Mombasa Port.
At this stage, you must pay customs duties and inspection fees. You may also require a clearing and forwarding agent to help expedite the customs clearance process and ensure compliance with all regulations.
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Final Steps: Selling Your Imported Products
Once your imported products have arrived in Kenya, it’s time to put your business skills into action. With strategic pricing and effective marketing, you can maximize your profits and grow your business. Proper planning and research will help you succeed as an importer.
6 Common Mistakes to Avoid When Importing from China to Kenya
- Never buy in bulk before receiving and approving product samples.
- Avoid suppliers who refuse to send samples—this could be a red flag for scams.
- Do not use your ATM card for payments initially. Instead, use secure platforms like PayPal for at least the first six months until you establish trust with your supplier.
- Refrain from importing counterfeit products. These can lead to legal consequences and loss of investment.
- Start with small orders. Instead of making a large initial purchase, start with 1-5 units to test demand and product quality.
- Don’t overlook customs regulations. Always ensure your imports comply with Kenyan law to avoid confiscation or penalties.
Carol & Kim: From Small Investment to a Thriving Handbag Empire
In early 2024, Carol and Kim, two ambitious friends with a passion for fashion, decided to take a bold step. With only Ksh 100,000, they launched their handbag import business. They had no prior experience in international trade, but they were determined to turn their dream into a reality.
Starting Small but Smart
After conducting thorough market research, Carol and Kim identified a growing demand for affordable yet stylish handbags among young professionals and university students in Kenya. They sourced their first batch of 50 handbags from China through a trusted supplier on Alibaba. By using a freight forwarder, they minimized shipping and customs costs, allowing them to maximize their inventory.
Building an Online Brand
With limited capital, they couldn’t afford a physical shop, so they turned to social media marketing. They created a vibrant Instagram page, and posted high-quality photos and videos showcasing their handbags. To attract buyers, they:
✅ Offered free deliveries within Nairobi for the first month.
✅ Partnered with influencers for reviews and shoutouts.
✅ Used Instagram and Facebook ads with just Ksh 5,000 to boost visibility.
The Breakthrough Moment
Within the first two weeks, they sold 80% of their stock, making a Ksh 40,000 profit after expenses. Excited by their success, they reinvested the profits and expanded their collection to include luxury replicas, office handbags, and travel bags.
A few months later, a well-known fashion boutique noticed their brand and placed a bulk order of 100 handbags, doubling their revenue overnight. This marked a turning point for their business.
Scaling Up & Expanding
By the end of the first year, Carol and Kim had:
🔹 Grown their monthly sales to Ksh 300,000+.
🔹 Launched a WhatsApp resellers program, allowing others to sell their bags for a commission.
🔹 Opened a small showroom in Nairobi due to high customer demand.
🔹 Started importing directly from Turkey & Thailand for premium handbag collections.
Lessons from Their Journey
1️⃣ Start small but think big. They didn’t wait for millions to start; they began with what they had.
2️⃣ Leverage social media. Digital marketing was their secret weapon.
3️⃣ Reinvest profits. Instead of spending earnings, they reinvested to scale up.
4️⃣ Customer service is key. They built trust through timely deliveries and quality products.
Today: A Thriving Handbag Empire
Carol and Kim’s handbag business is now valued at over Ksh 3 million, with a growing customer base across Kenya. Their story proves that with the right strategy, Ksh 100,000 can be the foundation of a multi-million business.
Their next goal? Expanding into East Africa and launching their own handbag brand! 🚀
Have Experience Importing? Let’s Connect!
Have you ever imported products into Kenya? Are you considering getting started? Share your thoughts and experiences in the comments—we’d love to hear from you!
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