The riskiest moment in any import is the payment to a supplier you have never met. Tens of thousands of shillings, sometimes millions, leave your account and you are trusting a stranger on another continent. Many importers have lost money to fake sellers and to real ones who ship poor goods. A methodical check before you pay reduces the risk sharply.

Verify that the company exists

Start with the basics. Ask for the company's registration number, its address and its contact details, and check them against official registries or recognised trade databases in its country. Use a map to look at the address, and call the main number, not just the one on the quotation. Be cautious if the only contact is a messaging account, if the address is a residence, or if the company has existed for a few weeks.

Check reputation

Look for independent reviews, trade references and a record of exporting to Kenya or East Africa. Ask for the contact details of two other customers and call them. Search the company name together with words like "scam" or "complaint". A trusted supplier will usually accept these checks; one that refuses is giving you information. Importing from China: risks and checks covers the specific checks for that market.

Order a sample first

For new relationships, buy a sample or a small first order. Inspect the quality, the packaging and the delivery time, and compare with what was promised. A sample proves little if the factory then changes materials for the bulk order, so agree that the bulk must match the sample and say so in writing.

Put it in a contract

Agree a written purchase order or contract that states the product specifications, quantity, price, delivery date, delivery terms, payment terms and what happens if the goods are late or defective. Use the standard delivery terms explained in Incoterms for importers so there is no confusion about who pays for what. Keep every message, since chat records can serve as evidence.

Choose a safe payment method

How you pay determines how much you can recover. Wire transfers are hard to reverse. Letters of credit, escrow services and payment through a bank-guaranteed process add protection, though at a cost. Splitting the payment, for example part on order and the balance against shipping documents or an inspection report, aligns the supplier's incentives. Never pay to a personal account when you are dealing with a company, and be wary of a last-minute change in bank details, which is a common fraud. Paying overseas suppliers safely covers fees, exchange rates and scams.

Use inspection and independent checks

For significant orders, hire an independent inspection company to check the goods before they ship. They can verify quantity, quality and packaging, and take photographs. Inspection costs a small fraction of a lost shipment.

Check compliance before you buy

Ask whether the goods meet Kenyan standards, and whether a conformity certificate is needed. A supplier unfamiliar with the requirements can leave you with goods that cannot be cleared. See KEBS, PVoC and import standards and HS codes and customs classification. Make sure the invoice describes the goods and their value accurately, since under-declaring is an offence; customs valuation explained shows why.

Know your total cost

A low unit price may hide high freight, duty and delays. Work out the full landed cost before you commit, using the landed cost calculator and the import duty calculator. The import duty and landed cost workbook lets you compare suppliers on the same basis.

Red flags

  • Prices far below the market.
  • Pressure to pay quickly, or by an unusual route.
  • Reluctance to provide documents, samples or references.
  • A change of bank account just before payment.
  • Poor, inconsistent communication.

Keep a supplier file

For each supplier, keep their details, your checks, the contract, the payments and the delivery record. It helps you decide whether to buy again and gives you evidence if there is a dispute. A careful check takes a few days; a lost shipment can take a year to recover from, if you recover anything at all.

If something goes wrong

Act quickly. Tell your bank at once if you suspect a fraudulent payment, since early reports sometimes allow a recall. Gather the contract, messages, payment proof and shipping documents, and report the case to the police and the relevant authorities. Contact the carrier to stop the goods if they are in transit. The sooner you act, the better the chance of limiting the loss, and a clear file makes every step easier.