UAE - Kenya

Payment

Explore secure payment methods, commonly used currencies, and standard payment terms for trade between the UAE and Kenya.

Payment Methods

In trade between the UAE and Kenya, secure payment methods are crucial for maintaining trust and efficiency. Options include telegraphic transfers, letters of credit, and bank guarantees, which provide security and reduce the risk of non-payment.

Currency

The primary currencies used in trade between the UAE and Kenya are the UAE Dirham (AED) and the Kenyan Shilling (KES). Due to the fluctuation in currency exchange rates, businesses often rely on USD as a stable intermediary currency for larger transactions.

It's important to monitor exchange rates regularly and consider hedging strategies to manage currency risk effectively. Financial institutions in both countries provide currency exchange services, but it’s advisable to negotiate rates or use financial instruments to lock in rates for future transactions.

Payment Terms

Typical payment terms in trade agreements between the UAE and Kenya range from 30 to 60 days. Businesses may negotiate different terms based on the relationship, transaction history, and the financial stability of the trading partners.

Advance payments, partial payments, and consignment deals are also common depending on the specifics of the trade agreement and the nature of the goods involved.

Frequently Asked Questions (FAQ)

What are the major airports and seaports in Kenya for cargo shipments from the UAE?

Major Kenyan airports for cargo include Jomo Kenyatta International Airport, Moi International Airport, and Eldoret International Airport. Key seaports include Mombasa Port and Port of Lamu.

What are the customs duties and taxes involved when importing goods from Kenya to the UAE?

Customs duties in the UAE are typically around 5% on most items imported from Kenya. Specific taxes and fees may vary based on the nature of the goods.

Are there any specific goods restricted or requiring special licenses for trade between the UAE and Kenya?

Yes, certain items such as firearms, ammunition, pharmaceuticals, and wildlife products require specific licenses and comply with health, safety, and international trading regulations.

What are the required documents for exporting goods from Kenya to the UAE?

Essential documents include a Bill of Lading/Airway Bill, Export License, Safety Certificates, Commercial Invoice, and Certificate of Origin.

How long does it typically take to ship goods from the UAE to Kenya by sea and by air?

Shipping times vary by mode of transport: sea transit from Dubai to Mombasa takes approximately 14-18 days, while air transit from Dubai to Nairobi through Mombasa takes about 1-2 days.