How to start a logistics company in Kenya

4 Easy steps on how to start a logistics company in Kenya

How to start a logistics company in Kenya – Are you looking to start a logistics company in Kenya that deals with customs clearance and warehousing? This article will take you through all the easy steps you need to take.

The Logistics (Clearing & Forwarding) industry is one of the lucrative industries in Kenya due to Kenya’s critical strategic location, being home to the region’s largest and busiest seaport – the port of Mombasa. Kenya also has a well developed road network trading and movement of goods from the seaport to the other landlocked east and central African Countries.

Step 1: Business Registration

The first step is to register a company in Kenya with the Registrar of Companies. Once the company is registered, a Certificate of incorporation and a form Cr12 will be issued. These two documents are then used to process a Company Tax Registration well and open a bank.

Step 2: Customs Clearing Agent License Application

The documents and certificates obtained during the company registration process will be used to apply for a customs clearing agent license from the Kenya Revenue Authority. The license application process takes about 6 Months and the statutory costs for the same is USD 50 payable upon approval of the license.

Documents Required for a Customs Agent License in Kenya.

• A valid certificate of registration – CR12/partnership deed
• Form C20 (application form) fully completed
• Authorization of application fee payment
• Receipt for application fee paid
• Proof of affiliation/membership with KIFWA – certificate for the year of application, payment receipt or letter
• Valid Tax Compliance Certificate for the company
• Valid Tax Compliance Certificate for the Director(s) or Partners
• Employee professional certificate in Customs Procedures and operations (at least 2)
• Company’s audited accounts
• Letters of Identification from all banking institutions where they hold accounts
• Passport size photos of Directors or/and Partners duly certified by Notary Public or a Commissioner of Oaths,
• Copies of Identity cards or passports for all directors
• Copies of the Certificate of Good Conduct for all directors
• PIN Certificate for the company and all directors
• Lease/Title deed for the office
• Any other information that may be required by Vetting Committee

Step 3: Register with KIFWA

KIFWA serves as the sole representative of all clearing, forwarding, and warehousing companies in Kenya. To become a member of KIFWA, you will be required to first get a clearance certificate, which costs $250 for the first year. The amount caters for the membership cost as well as the first year subscription. From the 2^nd year, you will be required to pay $150 annual subscription fees.

It takes 2 to 3 working days to become a member of the KIFWA.

Step 4: Obtain a Port Pass

A Port Pass is normally issued by the Kenya Ports Authority and usually valid for 2 years. The pass is a requirement for you to get access to the Sea or Airport. It takes between 3 and 5 working to process the port pass.

There are two types of port passes, The Individual and the vehicle port pass

The individual port pass is issued to the company’s personnel so that they may have access to the port.

Requirements individual for port pass application.

1. A request letter for a port pass.
2. Copies of National ID, work permits or alien ID.
3. $ 25 for the application.

The vehicle port passes is for the vehicles that can be allowed into the port. It takes 3 to 5 working days to have it processed.

Requirements for Vehicle port pass application.

1. A request letter for the port pass.
2. Copy of the vehicle logbook
3. Copy of the vehicle insurance certificates.
4. The application fee for saloon cars is $7.5
5. The application for SUV and commercial vehicles is $10

After completion of the 3 steps above, you can now go ahead and start sourcing for business to help your clients clear their cargo in Kenya.

We hope that this article was helpful in helping you understand on how to start a logistics company in Kenya. Feel free to contact us for more info on the same.