Total Cost of Ownership: Importing Agricultural Products from Kenya
Complete breakdown of all costs involved in Kenyan agricultural imports
By David Karanja
Many importers focus only on the FOB (Free on Board) price when budgeting for Kenyan agricultural products. This is a critical mistake. True cost of ownership includes dozens of additional expenses. This guide provides a complete framework.
In This Article
FOB price is what you pay the exporter in Kenya. For example, avocados at $0.70/kg FOB Kenya.
Landed cost includes FOB plus freight, insurance, duties, customs clearance, and port handling. Total landed cost can be 30-50% higher than FOB.
To calculate landed cost: FOB price + freight charges + insurance + import duty + customs brokerage + port fees + inspection fees.
Sea freight from Mombasa to Rotterdam (typical European destination): $8,500-12,000 per 20ft container for refrigerated cargo. Transit time: 30-35 days.
Air freight: $2.50-4.00/kg depending on product and season. Much faster (4-5 days) but suitable only for premium or urgent shipments.
Factor in peak season premiums: during high export months (March-May for avocados), sea freight premiums add 15-25% to base rates.
Key Takeaways
- ✓The difference between price and total cost
- ✓Sea freight vs air freight pricing
- ✓Customs charges by destination country
Bottom Line
Understanding total cost of ownership prevents budget overruns and helps you price competitively. Use this framework to calculate accurate costs before committing to Kenyan supplier agreements.
David Karanja
Export specialist and market analyst at Equator Crest Exporters Limited with 15+ years of experience in agricultural trade.