#LogisticsAdvice

How to Compare Overseas Suppliers and Import Costs

Paul Makolosi
Paul Makolosi
Country Manager Kenya
How to Compare Overseas Suppliers and Import Costs
This article covers:
How to calculate landed costs when comparing overseas suppliers
Why Incoterms, customs duties and documentation affect import costs
How MyGTS helps compare sourcing routes and shipping options

You’ve found two overseas suppliers offering the product your business needs. One has the lower unit price. The other includes more of the shipping process in its quotation. So which one gives you the better deal?

You’ve found two overseas suppliers offering the product your business needs. One has the lower unit price. The other includes more of the shipping process in its quotation. So which one gives you the better deal?

The answer only becomes clear when you add freight, customs duty, taxes, clearance charges and delivery to your premises.

For Kenyan businesses sourcing goods from abroad, a cheap quotation can quickly become an expensive shipment. Before choosing a supplier, work out the full cost of bringing the goods into Kenya, understand exactly what each quotation includes and assess whether the supplier can deliver consistently.

Start with the landed cost

First, make sure you’re comparing like for like. Both suppliers should be quoting for the same product specifications, quantity, packaging and quality standards.

Next, calculate the landed cost: the total amount you’ll pay to get the goods from the supplier to your business.

Include:

  • Product costs: Unit price, minimum order quantity and packaging

  • Transport and insurance: Collection at origin, international freight and applicable insurance

  • Import charges: Customs duty, VAT, levies and clearance fees

  • Documentation and compliance: Certificates, inspections, permits and product-specific requirements

  • Local delivery: Destination handling and transport to your premises

  • Payment costs: Currency conversion, bank charges and payment terms

Not every shipment attracts every charge. The exact costs depend on the product, its origin, the shipping route and the destination. Confirm what applies before placing the order.

If a Kenyan manufacturer offers the same product, include its quotation too. With no international freight or import duty to pay, the local quote gives you a useful benchmark. Once delivery within Kenya is added, the overseas suppliers need to beat that figure to make commercial sense.

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Check what each quotation includes

Two suppliers can quote very different prices because they’re offering different delivery terms.

One supplier may include freight to Mombasa, while another may only cover transport to the port of departure. The second quote may look cheaper, but it leaves you to arrange and pay for more of the journey.

It doesn’t necessarily reduce your customs duty either. Kenya values imports on a cost, insurance and freight, or CIF, basis. If you buy under free on board (FOB) terms, you’ll pay the freight separately, but that freight still forms part of the value used to calculate duty.

Check the Incoterm shown on each quotation. Incoterms define how costs, responsibilities and risks are divided between the buyer and seller. Before accepting an offer, ask the supplier to confirm:

  • What transport is included

  • Who arranges and pays for insurance

  • Where responsibility for the goods passes to you

  • Which export and shipping documents it will provide

  • Which charges you’ll need to pay at the destination

Freight costs can also change when you’re buying from several suppliers in the same sourcing hub. Consolidating their goods into one shipment may reduce the cost per kilogram and make handling easier.

 

Confirm duties and documentation before ordering

Import charges depend on the product’s HS code, customs value, country of origin and any trade arrangements that apply. Remember: the supplier’s location isn’t always the same as the country where the goods were manufactured.

That distinction matters when importing into Kenya.

Since 1 July 2025, the Kenya Revenue Authority (KRA) has required import consignments to carry a Certificate of Origin issued by a competent authority in the country of export, subject to certain exceptions. Full enforcement began on 1 October 2025. Before ordering, confirm which document each supplier will provide and whether it meets KRA’s requirements.

There’s another step for containerised sea cargo. Since 3 August 2026, the exporter must obtain an Advance Cargo Declaration (ACD) reference code from KRA before loading. To complete the process, the exporter uploads the draft bill of lading, commercial invoice, freight invoice and export declaration.

Ask each shortlisted supplier whether it can complete the ACD process correctly and on time. Sorting this out before loading can help you avoid unnecessary delays later.

A lower purchase price won’t save you money if the shipping route costs more, the paperwork is incomplete or the product requires additional certification.

Compare reliability, not just cost

Once you have comparable landed-cost estimates, look at what each supplier offers beyond the numbers.

Review product samples and quality records. Check production lead times, minimum order quantities and the supplier’s process for handling defects or rejected goods. Make sure its payment terms work with your cash flow, and ask whether it can maintain the same quality and delivery standards as your order volumes increase.

A supplier that charges slightly more but delivers on time, communicates clearly and maintains consistent quality may be a safer, and more profitable, choice than one offering the lowest quotation

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Use MyGTS to compare your sourcing options

DHL Express’s My Global Trade Services (MyGTS) is a free platform that helps businesses find HS codes and estimate shipment landed costs, including freight charges, duties and taxes.

Its Trade Lane Comparison feature allows you to review applicable trade agreements and compare estimated duties and taxes across different routes. This can help you see how sourcing the same product from China, India, the UAE or another market may affect what you pay at the Kenyan border.

Use MyGTS estimates alongside each supplier’s quotation, product quality, lead time and payment terms. The figures are estimates, so confirm the final charges for your shipment before signing the purchase order.

Match the shipment to the right DHL service

Your choice of supplier also affects how the goods should travel.

Samples and smaller, time-sensitive consignments may be better suited to DHL Express, which includes customs clearance as part of its international service.

Larger shipments, such as pallets and containers from China, India or Dubai, may be better handled by DHL Global Forwarding. It can coordinate ocean or air freight, customs declarations and inland transport to your premises as one connected shipment.

Choosing the right service helps you balance speed, cost and shipment size without paying for more than your business needs.

Choose on landed cost, then ship with confidence

The best supplier isn’t always the one with the lowest price on the quotation. It’s the one that offers the strongest combination of landed cost, reliable delivery, consistent quality and manageable risk.

A DHL business account can give you access to competitive rates and expert customs support. You can also use your DHL Express login to access MyGTS and compare sourcing routes before you commit.

Open a DHL business account, run your shortlisted suppliers through MyGTS and make the numbers clear before signing the purchase order.

FAQs

Landed cost is the total estimated amount you’ll pay to get goods from your supplier to your business in Kenya. It includes the purchase price, shipping fees, customs duties, taxes and any other charges incurred along the way. Calculating these costs manually for every product can take time, so many Kenyan importers use automated tools to make the process faster and more accurate.

Yes. If you buy under terms such as EXW or FCA, you can arrange the main freight yourself. DHL Express import services allow you to book inbound shipments using your own account, monitor their progress and stay in control from collection to delivery. Time-definite import options also help you plan stock arrivals and keep your customer commitments.

Start by confirming the correct HS code for your product. You can then check the customs duty, VAT and any other import charges that may apply in Kenya. Since the HS code shown on the commercial invoice determines the duty rate, confirm it with your supplier before placing the order. Getting this right early can help you avoid delays and unexpected costs at customs.

Not always. A lower unit price may look attractive, but higher freight charges, longer lead times, compliance costs or inconsistent quality can quickly wipe out the savings. And if your stock arrives late, your customers’ orders may be delayed too. Compare suppliers based on landed cost, reliability, product quality and delivery time, not price alone.

Before shipping, verify the supplier, calculate the likely landed cost, confirm Kenya’s import requirements and prepare all the necessary documents. It also helps to understand the full process before committing your money. China is Kenya’s largest source of imports, and the steps involved in importing from China to Kenya offer a useful picture of what a typical first import may involve.