This thread was supposed to be a bit open for the sake of information purposes. Of course, no one has to be completely explicit about anything.
I find it weird that some guys keep trying to derail the thread, some crying CID, and those with deep knowledge about imports want to push the narrative that everything in Kenya has it’s full tax paid. Seems more like attempts to cover up what’s really going on in this country.
I think the verdict is that there are certainly illegal means to import goods into this country and Wariahs are mainly behind this. Some corrupt KRA agents sometimes aid in this.
Anyone can use them but at their own peril because it’s illegal. This country is corrupt as fk and we simply have to accept that…
Well sir, you sought information about imports and how to go about it and you got it. You go to Tz, UG, Rwanda, Zambia, mzansi, etc same channels of cargo consolidation operate, with same warias. And by the way they have existed for more than 20 years. If you believe they are illegal, or what you do with the information provided is really up to you.
Sasa wewe na akili timamu unataka kutuambia importing 20kg of iPhones from Dubai would incur a 6$ per KG cost which is customs plus shipping cost. Sasa ati unalipa 120 usd na kwa hiyo 120usd kuna duty plus customs plus shipping cost plus profit…wewe wacha jokes
20kg box contains like 40 iPhones of 1000 usd each. Total cost 40,000 usd. Total taxes due over 2m Kshs. Halafu wewe umelipishwa Kshs 12k na unatuambia nothing shady is going on. Hata kama unafanya kazi uko don’t take us for idiots
If it pleases you to import individually, (unconsolidated), pay idf, and be charged per item, it really is your choice. Problem arises when you discover your competition is selling the same product for less than your cost and you start accusing them sijui tax evasion sijui nini.
Just know this, cargo consolidation is legal, legislated for in the laws of the land and accessible unless you can fill your own container where the options for importation are different.
What you don’t know is that with consolidation there are those that benefit by paying lesser dues (mostly small high value items) while there are those that overpay (mostly bulky low value items).So this in total evens out and KRA usually most of the times gets their fair share trust me!
Not to say that their are no tax evasions going in the country but that has significantly reduced over the years!Recently a KRA circular informed employees any goods that are found in the country without proper clearance the person who cleared it at the port will be personally liable.
Hakuna mtu amekataa cargo consolidation ni legal. What we are saying is that Waria do not pay taxes. Two very different things. Consolidation lowers shipping fees. Customs Tax will and should always be the same at all times because tax is calculated on the cost of the goods.
Whether your goods are consolidated or not, kama tax ni 100,000 kshs, that is constant.
You are not even providing us with reasons why Waria do not offer VAT receipts to their clients to be compliant with the system.
Hakuna kitu kama hii. Tax is an individual obligation. And the amount of tax that needs to be paid has ZERO relation to the quantity or bulkiness of goods.
Tax is calculated ONLY based on the value of goods. If your goods are worth 200,000, tax should be around 120,000 whether you have consolidated or not. That is your issue
If they are so compliant, why do they not offer clients receipt to enable clients to be compliant with the tax office(I mean a business requires it’s VAT receipts)
Why do they also remove any receipts that come with your shipments? Kama nimenunua a bunch of goods, they always come with the receipt. And when you ship via DHL, UPS etc, you will get this receipt with your goods. Why do these receipts go missing when warias are handling your goods?
If you are selling and your customers are happy, then stick to what you are doing. Trying to copy competitor moves is a guaranteed way to fail. Maybe their products are fake, or maybe they are evading taxes.
In life, you will never progress if you don’t test things out. Business is usually about adapting. In my industry, trendsetting is important. If you are the person who sets standards in coming up with the latest fashion, you will make a killing. Lets say, you bring something no one else has and customers love it, you will sell over 10 items of that product in a day minimum without compromising on prices.
By the time, the competitors are learning of it, you should be done with that product otherwise you risk a lot of dead stock. Competitors will try to flood the market with it and undercut your dominance by selling the same product more cheaply. I want to cover this risk by importing more cheaply.
If your competitors ship the goods via the cargo consolidation system and it’s cheaper, you would have to follow suit if you sell the goods at the same price as your competitor. However, the fact is that the cargo consolidation system makes goods cheaper through Import Duty tax evasion… so this opens a window for the KRA fellows to make a killing when they come calling (especially for goods with serial numbers that are indicated on the IDF form or if your shop is really huge warranting regular tax audits by KRA… Any type of which are ONLY imported via this cargo consolidation system are conduits for tax evasion with the humongous risk that comes with it when you want to scale up your stock… small stocks mean nothing much from the taxman’s perspective… but if your model is based on tax evasion, then make sure you do not scale… Just remain a hawker-kiosk-stall small-time fellow and all will be well…