What a 40ft container from China to Kenya really costs is not the freight quote. The freight quote is one line in a long list that includes origin charges, local marine insurance, duty, levies, VAT, port and CFS charges, clearing fees and the road to your warehouse. Importers who budget from the freight quote alone consistently underestimate, so here is how the whole cost stacks up, with an illustrative calculation.

The Cost Layers

Goods: the price you pay your supplier
Origin charges: under EXW, pickup, inland trucking, export clearance and port handling are yours; under FOB most are in the supplier’s price (see EXW versus FOB)
Main freight: ocean freight plus surcharges, or air freight on chargeable weight
Insurance: now from a Kenya-licensed insurer; see our marine insurance guide
Kenyan government charges: duty, Import Declaration Fee, Railway Development Levy and VAT
Destination charges: port or CFS handling, delivery order, storage if delayed
Clearing agent fee: see our clearing agent cost guide
Inland transport: from the port to your premises

An Illustrative Calculation

These figures are for illustration only, not a quote, and assume a product in the 25% duty band. Rates, bands and charges vary by product and change over time.

Item	Calculation	KSh
Goods (FOB)		3,000,000
Freight and insurance		400,000
CIF value		3,400,000
Import duty (25%)	3,400,000 x 25%	850,000
VAT base	CIF + duty	4,250,000
VAT (16%)	4,250,000 x 16%	680,000
IDF (2.5%)	3,400,000 x 2.5%	85,000
RDL (2%)	3,400,000 x 2%	68,000
Total statutory charges		1,683,000
Landed cost before port, agent and transport		5,083,000

Notice that VAT is charged on the duty, not just on the goods. Port charges, the agent’s fee and inland transport come on top. See our landed cost formula for the full method.

What Changes the Number

Your product’s HS classification sets the duty band, and some products carry excise, EPR or other charges. Customs value generally includes the cost of getting the goods to Kenya, so origin charges you pay separately under EXW should be discussed with your agent. Exchange rates, freight market swings and surcharges also move the total, and delays add storage and demurrage.

Where Budgets Go Wrong

Common mistakes include comparing an EXW price with an FOB price, forgetting that VAT compounds, assuming duty is based on what you paid rather than the declared customs value, and ignoring storage, inspection and delivery costs. Our guide to reading a clearing quote explains how to check what each quote includes.

How to Compare Quotes Properly

Ask every provider for an all-in basis, with each cost line separated and exclusions stated. Convert everything to the same Incoterm, and add your own estimate for duty and levies. A quote that looks cheap often leaves something out.

Get a Landed-Cost View Before You Order

What the product is, and its HS code if you know it
Your supplier’s location (city and province), which decides the port or airport
Cargo size: cartons, total cubic metres (CBM) and gross weight in kg
The Incoterm on your supplier’s quotation (EXW or FOB) and the supplier’s contact
Your target arrival date, and any permits or certificates your product needs

Want the full landed cost for your product before you pay your supplier? Send us the details, and we’ll build the numbers with you.

Frequently Asked Questions

Is the freight quote the cost of a 40ft container? No. It’s one line among origin charges, insurance, duty, levies, VAT, port charges, agent fees and delivery.

Is VAT charged only on the goods? No. It’s charged on the customs value plus duty.

Does the 25% duty rate apply to everything? No. Rates depend on classification and can differ. The example is illustrative.

Can I get an exact cost before shipping? A reliable estimate needs your product, HS code, values and terms. Send the details and we’ll build it.