Incoterms are standard trade terms published by the International Chamber of Commerce. They set out who arranges and pays for transport, insurance and clearance, and the point at which risk passes from seller to buyer.
The terms importers meet most
| Term | In plain words | Watch out for |
|---|---|---|
| EXW Ex Works | You collect from the seller's premises and carry nearly all cost and risk. | You arrange export clearance abroad too, which can be hard. |
| FOB Free on Board | Seller delivers goods on board the vessel at the origin port. You pay sea freight and everything after. | Common for sea freight. Risk passes once goods are loaded. |
| CIF Cost, Insurance and Freight | Seller pays freight and minimum insurance to the destination port. Risk still passes at loading. | Insurance is basic. Consider extra cover. |
| DAP Delivered at Place | Seller delivers to a named place in Kenya, ready to unload. You handle import clearance and duties. | Check exactly where delivery ends. |
| DDP Delivered Duty Paid | Seller handles everything including import duties. | The seller needs to be able to clear in Kenya. Confirm how. |
How to choose
- If you have a trusted clearing and freight partner in Kenya, FOB often gives you control and visibility over costs.
- If you want simplicity and your supplier is reliable, CIF or DAP can reduce your coordination.
- Be careful with EXW unless you have strong support at the origin.
Tip: agree the term and the named place in writing with your supplier, and share it with your clearing agent before the order is confirmed.
Frequently asked questions
Which Incoterm is best for importing into Kenya?
There is no single best one. It depends on your experience, your supplier and who is better placed to manage freight and clearance. Talk to your agent before you agree terms.
Does the Incoterm affect duties?
It can affect the customs value, because freight and insurance costs are often included in the value used to assess duties. Your agent can estimate the impact.