Money Management
October 25, 2024
If you're in the market for a new phone or laptop, importing from the US could save you money while giving you access to a broader range of products.
Electronics in Kenya often come with higher markups due to shipping, taxes, distributor costs, and sellers profit, making direct imports a cost-effective alternative.
For example, importing the base model 128GB iPhone 16 could cost you around Ksh105,000 including shipping costs, whereas buying the same model locally might set you back over Ksh130,000.
Importing also lets you access the latest models before they hit Kenyan shelves, or purchase phones and laptops that may not be available for the local market. Beyond cost and selection, buying directly from reputable US retailers or manufacturers like Apple or Dell guarantees you’re getting a genuine product, free from the risk of counterfeits.
This article will break down the steps you can take to safely import your dream phone or laptop from the US to Kenya.
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Before importing a phone or laptop from the US, it's essential to choose the right product that suits your needs.
Start by browsing trusted US e-commerce platforms like Amazon, Best Buy, or directly from manufacturers' online stores such as Apple or Dell. These sites often provide detailed product information, including specifications and reviews from previous buyers, which will help you make an informed decision.
Additionally, many US platforms offer both new and refurbished products—refurbished items can be significantly cheaper and may be worth considering if you're looking for a bargain. Websites like eBay, Swappa, and Best Buy's certified refurbished section offer reliable refurbished electronics, often backed by warranties.
When choosing a phone, check its compatibility with Kenyan mobile networks. US phones may operate on different frequency bands, and some may be SIM-locked to specific carriers, meaning they won't work in Kenya unless unlocked. For laptops, check voltage compatibility with local power standards and ensure that the keyboard layout and software meet your preferences.
It's also a good idea to compare the prices of the product you're interested in locally. While importing can be cheaper, you might find that buying a specific model locally saves you money compared to importing.
Reputable websites like Amazon, eBay, Walmart, and direct manufacturer online stores offer security and reliability.
These platforms often have safeguards in place to prevent counterfeit products and ensure customer satisfaction. Buying directly from manufacturers ensures authenticity and may provide access to exclusive warranty benefits and after-sales support.
Comparing prices across platforms can help you find the best deal. Look out for sales, bundle deals, or special offers that can reduce your costs. While comparing, consider if the warranty applies to users outside the US, as many manufacturers limit coverage to their country of sale. For instance, AppleCare might not be valid in Kenya unless you purchase it from a Kenyan-authorised reseller.
Avoid purchasing from unknown or third-party sellers who may offer lower prices but could also be selling counterfeit or defective products.
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When it comes to shipping, there are two main options: using a forwarding service or opting for direct shipping.
A forwarding service, like MyUS, Kentex Cargo, or Savo Store, is often the most convenient. These companies consolidate your purchases, ship them to Kenya, and handle all the logistics, including clearing customs, paying freight insurance, and consolidating taxes in the final shipping fee.
Typically, forwarding services charge by weight, and in most cases, you won’t need to pay any additional customs or handling fees beyond what they charge.
On the other hand, direct shipping involves using a third-party shipping company like DHL, FedEx, or even Posta Kenya. With this method, you pay a shipping fee to the retailer or shipping company, and when your package arrives in Kenya, you'll be responsible for customs clearance and paying any taxes on the product.
This option tends to be slower and more cumbersome, as customs clearance can take time, and you may face extra fees and taxes along the process.
Shipping costs will vary based on the size and weight of the item, so estimating the package weight and dimensions beforehand is key to determining your total shipping expenses.
Let’s look a three common paths Kenyans use to import phones to determine the most affordable option:
Scenario: You buy the iPhone 16 directly from an eCommerce platform like eBay for Ksh103,000 and opt for eBay’s International Shipping service.
Phone Cost: Ksh103,000
Shipping Fee: Ksh6,430 (US $49.86 via eBay International Shipping)
Excise Duty: 10% of the custom value. This is Ksh10,300 (for a phone valued at Ksh103,000, but KRA can assess a different value)
Total Cost: Ksh119,730
Scenario: You buy the iPhone 16 from an eCommerce platform like eBay for Ksh103,000 and ship it to a forwarding service warehouse in the US. They then ship it to Kenya.
Phone Cost: Ksh103,000
Shipping Fee (Forwarding Service): $15 (Ksh1,930) per kg (phone weight is below 1 kg)
Excise Duty: None.
Total Cost: Ksh104,930
Scenario: Your friend buys the iPhone 16 for Ksh103,000 in the US and brings it back to Kenya. KRA requires all items you brought for someone else including gifts be declared if their value exceeds $500 limit. You friend will there need to declare the phone and pay exercise duty.
Phone Cost: Ksh103,000
Excise Duty (10%): 10% of the custom value (Ksh103,000, but KRA can assess a different value), which is Ksh10,300.
Total Breakdown:
Phone Cost: Ksh103,000
Excise Duty (10%): Ksh10,300
Total Cost: Ksh113,300
VERDICT: From the example above, forwarding services offer the most cost-effective solution. Additionally, they also offer the fastest delivery of less than two weeks compared to direct shipping which can take over a month.
When purchasing from a US retailer, you have several payment options, including debit/credit cards, PayPal, or wire transfers. Many major e-commerce platforms accept these payment methods, but it's important to ensure that your card is enabled for international transactions. Some banks may charge foreign transaction fees, so it's worth checking if your account carries these hidden costs.
Always use a trusted payment platform to protect yourself from fraud. Sites like Amazon and eBay offer buyer protection, which helps in case of disputes or undelivered items.
If you're using a forwarding service, you'll likely make two separate payments: one for the product to the US retailer and another for the shipping fees when the forwarding company receives your item and ships it to Kenya.
It's crucial to ensure your payment covers both the product and any associated shipping costs if you're dealing directly with the retailer. If you're using a forwarding service, once your package arrives at their US warehouse, they will handle the rest, and you'll only need to pay the shipping fees when the item reaches Kenya.
Most retailers and shipping companies provide tracking tools, which allow you to see exactly where your package is at any given time. Whether you're using a forwarding service or direct shipping, make sure the company provides tracking updates so you can follow your shipment's journey.
If there’s a delay when shipping directly, check the tracking information to determine if it’s being held at customs. In such cases, you may need to handle customs clearance or hire an agent to do it on your behalf.
However, if you're using a forwarding service, they will handle customs clearance for you, and you can either pick up your package from their local office in Kenya or have them deliver it to your address.
Once your package arrives, inspect it carefully to ensure the phone or laptop is undamaged. If there are any issues, most retailers or manufacturers offer return policies, but be sure to check the conditions before purchasing. Forwarding services also typically check the condition of your item before shipping it to Kenya, which adds an extra layer of security for your purchase.
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Before starting the importation process, conducting thorough due diligence is crucial. This step can save you from costly mistakes and ensure a smooth experience. Here are e potential challenges and how to prevent them:
If you use a forwarding service, ask for a full breakdown of their charges, which usually consolidate all costs, so you know exactly what to expect.
If you’re using a forwarding service, have the company inspect the product before shipping it to Kenya to avoid receiving damaged goods.
Reliable companies offer freight insurance, comprehensive tracking, and handle customs clearance, giving you peace of mind that your package will arrive safely.
If warranty coverage is important to you, consider brands or retailers that offer global warranties, or buy from Kenyan distributors, who can provide local support.
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The process of importing a phone or laptop from the US can seem complicated at first, especially with so many factors to consider—shipping options, customs clearance, and product authenticity. However, with thorough research and a clear understanding of the shipping and customs processes, it becomes much easier to navigate.
A key part of simplifying this process is learning from others who have successfully imported phones/laptops before. If you have friends, colleagues, or family members who’ve gone through this experience, take the opportunity to pick their brains.
They can offer invaluable insights into the process, from the best US retailers and shipping companies to use, to how they handled customs, and even tips for saving money such as using coupons or shopping during sale seasons like Black Friday.
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