Introduction
After years of helping Kenyan businesses import goods from around the world, we've seen the same costly mistakes made repeatedly. Here are the five most common — and how to avoid them.
Mistake 1: Undervaluing Cargo on Commercial Invoices
Many importers undervalue goods on invoices to reduce customs duty. This is illegal and can result in heavy penalties, cargo seizure, and even criminal charges. Always declare the accurate value.
Mistake 2: Not Getting a Delivery Order Early
At the Port of Mombasa, delays in obtaining the Delivery Order (DO) from the shipping line result in demurrage charges that can run into hundreds of thousands of shillings. Engage your customs agent before cargo arrives.
Mistake 3: Wrong or Missing Documentation
Ensure you have the correct: Commercial Invoice, Packing List, Bill of Lading or Airway Bill, Certificate of Origin (where required), Import Declaration Form (IDF), and Pre-Export Verification of Conformity (PVoC) where applicable.
Mistake 4: Not Insuring Your Cargo
Marine insurance is often overlooked as an unnecessary expense — until cargo is damaged or lost. Always insure shipments for their full CIF value.
Mistake 5: Choosing the Cheapest Option Without Comparing Total Landed Cost
The cheapest sea freight rate may cost more in the long run if transit time is longer, requiring more working capital to be tied up in transit inventory. Calculate total landed cost including all duties, taxes, and handling charges.