Start an import business in Kenya
People around the world need to move goods from point A to B and always will. If you can help make that happen, there’s a serious opportunity to start an import business in Kenya.
Accessing international markets opens up new possibilities for growth, but it’s crucial to understand the unique regulations, consumer demands, and logistics involved in each market.
If you’re ready to start an import export business in Kenya and take the first step toward your own import business, you’re in the right place.
What is global trade, and why does it matter?
Before you start your import business in Kenya, let’s take a minute to understand what international trade really is and why it’s such a powerful engine for import business growth. International trade is simply the buying and selling of goods and services across international borders. It’s what allows you to source products from one country and sell them in another, tapping into demand that may exist in different markets around the world.
Why does this matter to you? International trade opens up opportunities you just can’t find in your local market. Starting an import export business does not limit you to what’s happening in your own backyard; you can access the international market, find a niche with less competition, and take advantage of price differences between countries.
This is the backbone of the import business: finding products that are in demand, sourcing them where they’re made best or cheapest, and moving them to where they’ll sell for a profit.
Want to start an import business in Kenya? Consider these legal aspects
Understanding and complying with the key legal considerations is pivotal for smooth operations. The following are the key aspects to consider:
1. Business Registration
The first step in starting an import business is registering your company with the Registrar of Companies through the Business Registration Service (BRS). Depending on your preferred business structure, you can choose from the following business structures;
- Sole proprietor
- Partnership
- Limited liability company (LLC).
Registration is available online via the eCitizen platform; hence, the process is flexible and convenient for investors. For more guidance on company registration, check out this blog.
2. Import Licensing
Securing an Import License from the Kenya Revenue Authority (KRA) is mandatory for all companies involved in the importation of goods. This license ensures that your import activities comply with Kenya’s trade and customs policies.
3. Tax Compliance
As an import investor in Kenya, you must comply with Kenya’s tax laws, including Value Added Tax (VAT) and Customs Duties. You’ll need to register for a Taxpayer Identification Number (PIN) with KRA and understand the applicable tax rates for the goods you intend to import.
4. Customs Regulations
The Kenya Revenue Authority (KRA), specifically the Customs and Border Control Department, governs the importation of goods. You must comply with documentation requirements, such as the Bill of Lading, Commercial Invoice, and Packing List, as well as pay customs duties and VAT to clear your goods through customs.
5. Product Standards and Certification
Certain products, such as electronics, food items, and pharmaceuticals, are regulated by the Kenya Bureau of Standards (KEBS) to ensure they meet safety and quality standards. You may need a Pre-Export Verification of Conformity (PVoC) certificate before shipment.
6. Import Duties and Tariffs
Goods imported into Kenya are subject to customs duties and tariffs, which are determined by the East African Community (EAC) Customs Union. Be familiar with the specific duties for the categories of goods you plan to import.
7. Local Import and Export Policies
Kenya’s membership in the East African Community (EAC) means that regional trade agreements may influence the importation process. Understanding EAC trade policies is crucial for navigating the import landscape and ensuring compliance with both national and regional regulations.
8. Health and Safety Regulations
Certain products, especially food, chemicals, and medical supplies, are subject to health and safety regulations. Approval from the Ministry of Health or other relevant agencies may be required, depending on the goods you’re importing.
9. Environmental Regulations
Products with environmental impacts, such as packaging materials or chemicals, are overseen by the National Environment Management Authority (NEMA). Importers must comply with environmental regulations to avoid penalties.
10. Intellectual Property Rights
Ensure your imports do not infringe on intellectual property rights, such as trademarks, patents, or copyrights. Violations could lead to legal consequences.
By understanding and adhering to these legal requirements, you can establish a solid foundation for your import business, minimising risks and ensuring smooth operations.
Conclusion
Starting an import business in Kenya presents profitable opportunities. However, it requires careful planning, legal compliance, and strategic partnerships with a trusted business consulting company like Afrilink Consultants for smooth registration and compliance.
With dedication and the right resources, Kenya’s import sector can be both profitable and rewarding. The market is full of growth potential, and with adaptability and a strategic approach, your business can thrive. Reach out to us for more information.
📩 clientservice@afrilinkconsultants.com
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