For buyers in Kenya, Uganda, Tanzania and Rwanda, Thailand offers a middle path: better quality control than the cheapest origins, and lower prices than European supply. The question is whether to buy finished goods or commission your own production.
Import or manufacture: the East African answer
Start by importing finished goods. The EAC market rewards proven sell-through, and the compliance overhead per shipment is significant. Move to OEM when a SKU is clearly repeatable and you want your own brand on shelf.
- Import finished goods for range building and market testing.
- Manufacture under OEM for own-label programmes, institutional tenders and volume lines.
EAC duty bands
The EAC Common External Tariff uses broad bands: 0% for raw materials and capital goods, 10% for intermediate goods, 25% for finished goods, with higher sensitive-item rates. Add excise where applicable, VAT, the Import Declaration Fee and the Railway Development Levy.
Two practical implications:
- Importing components and assembling locally can cut duty from 25% to 10% or 0%. That is often a stronger argument for local assembly than labour cost.
- Get an accurate HS classification early - a band change moves your entire margin.
PVoC and standards
Kenya requires Pre-Export Verification of Conformity for most regulated goods, with a Certificate of Conformity issued before shipment. Uganda and Tanzania run comparable schemes.
Do this before production ends:
- Appoint the inspection body and book verification at the Thai factory.
- Ensure the factory can produce test reports against the referenced standard.
- Confirm labelling and marking requirements so the goods do not fail at Mombasa.
Freight to Mombasa and inland
Laem Chabang to Mombasa is generally 18-28 days, often with transhipment via Singapore, Colombo or a Gulf hub. Inland haulage to Nairobi, Kampala or Kigali adds days and cost, so cube efficiency matters.
- Full containers almost always beat LCL once duty and handling are counted.
- Design packaging for cube, not just protection.
- Plan a 2-3 month cycle from deposit to warehouse.
Break-even
If OEM saves USD 1.20 per unit and tooling plus verification and audit costs USD 15,000, break-even is around 12,500 units. Where duty banding lets you import components instead of finished goods, the saving can be far larger than the factory-gate difference - model both.
Compliance and payment
- KEBS standardisation mark for regulated products sold in Kenya.
- Letters of credit or staged payments to manage counterparty risk both ways.
- Clear Incoterms; see our Incoterms 2020 guide.
Frequently Asked Questions
What duty applies to Thai goods in Kenya?
The EAC Common External Tariff applies: broadly 0% for raw materials, 10% for intermediate goods and 25% for finished goods, plus VAT, IDF and the Railway Development Levy.
Is PVoC mandatory for imports from Thailand?
Yes for most regulated product categories entering Kenya. Verification must be arranged before shipment, so build it into the production schedule rather than treating it as a port formality.
How long does shipping from Thailand to Mombasa take?
Typically 18-28 days port to port, usually with transhipment, plus inland transport time to Nairobi or landlocked EAC markets.
Does local assembly make sense instead of importing finished goods?
Often yes. Importing components at 0-10% duty instead of finished goods at 25% can outweigh assembly cost, especially for appliances, furniture and equipment.
What is the first step?
Share your product, target volume and destination country. We provide a verified Thai supplier shortlist, a landed-cost model with EAC duty and levies, and a plan for PVoC and pre-shipment inspection.