Key takeaways
- For air-freighted produce from Kenya, use FCA, CPT or CIP; FOB and CIF are sea-only rules.
- Under FCA, CPT and CIP, risk passes to the buyer when cargo is handed to the carrier in Nairobi.
- CIP requires the seller to buy ICC (A) all-risks insurance; CIF only requires the lower ICC (C) cover.
- Incoterms do not cover price, payment, ownership or quality claims; put those in the contract.
- Write the rule, named place and version, e.g. FCA JKIA Nairobi, Incoterms 2020.
For fresh produce flown out of Kenya, the Incoterms® 2020 rules that fit best are FCA, CPT or CIP, not FOB or CIF. FOB and CIF are designed for sea and inland waterway transport only. With FCA, CPT and CIP, risk passes to you, the buyer, when the exporter hands the export-cleared cargo to the airline or its handling agent in Nairobi, so cargo insurance and cold-chain control at origin matter.
That sounds technical, but choosing the right term on your quotation decides who books the flight, who pays freight, who insures the boxes, and who carries the loss if a consignment of roses or basil is delayed on the tarmac. This guide explains the options in plain English for importers, wholesalers, supermarkets and florists buying perishables from Kenya.
What are Incoterms?
Incoterms are 11 standard trade rules published by the International Chamber of Commerce (ICC) that define who does what, who pays, and when risk passes between seller and buyer. The current version is Incoterms® 2020. According to the US International Trade Administration, seven rules apply to any mode of transport and four apply only to sea and inland waterway transport:
| Any mode, including air | Sea and inland waterway only |
|---|---|
| EXW – Ex Works | FAS – Free Alongside Ship |
| FCA – Free Carrier | FOB – Free on Board |
| CPT – Carriage Paid To | CFR – Cost and Freight |
| CIP – Carriage and Insurance Paid To | CIF – Cost, Insurance and Freight |
| DAP – Delivered at Place | |
| DPU – Delivered at Place Unloaded | |
| DDP – Delivered Duty Paid |
Always write the rule, the named place and the version together, for example "FCA JKIA Nairobi, Incoterms® 2020".
Can I use FOB or CIF for air freight from Kenya?
You can write them on a contract, but they were not designed for air freight. FOB and CIF transfer risk when goods are loaded on board a vessel. Air cargo, like containerised sea cargo, is handed to the carrier at a terminal well before it is loaded, so there is a gap where neither party is clearly responsible. The ICC confirms that CIF is for sea transport only while CIP covers any mode.
In practice, the air-freight equivalents are:
- FOB → FCA (seller delivers to the carrier; buyer pays main freight)
- CFR → CPT (seller pays freight; risk passes at handover to carrier)
- CIF → CIP (as CPT, plus seller insures the cargo)
If a supplier quotes "FOB Nairobi" for flowers, ask whether they mean delivery to the airline at JKIA, and put the correct term in the contract.
FCA, CPT and CIP compared
| FCA – Free Carrier | CPT – Carriage Paid To | CIP – Carriage and Insurance Paid To | |
|---|---|---|---|
| Who books and pays air freight | Buyer | Seller | Seller |
| Export clearance and phytosanitary paperwork | Seller | Seller | Seller |
| Where risk passes to buyer | At handover to carrier at the named place | At handover to the first carrier at origin | At handover to the first carrier at origin |
| Cargo insurance | Buyer decides | Buyer decides | Seller must buy it (ICC (A) all-risks level) |
| Import clearance and duties | Buyer | Buyer | Buyer |
| Best for | Buyers with their own forwarder or airline rates | Buyers who want one landed-airport price | Buyers who want freight and insurance arranged at origin |
Under Incoterms® 2020, CIP requires the seller to buy insurance at the higher Institute Cargo Clauses (A) level, while CIF only requires the more limited Clauses (C) cover. That change is one reason CIP suits high-value perishables better.
When does risk pass to me as the buyer?
Under FCA, CPT and CIP, risk passes in Kenya, not at your airport. This surprises many first-time importers. Even when the seller pays the freight under CPT or CIP, a delayed connection, a broken reefer unit at a transit hub or rough handling on arrival is the buyer's risk once the cargo has been handed to the carrier.
That is why two things matter more than the price per stem or per kilo:
- Cold chain before handover. Pre-cooling, packing and temperature control from farm to the airline's cool room happen while the seller still carries the risk, and they decide how much shelf life you receive. Our cold chain guide for fresh produce exports explains what good handling looks like.
- Insurance after handover. Under FCA and CPT, insurance is your decision. Talk to your insurer or forwarder about perishable cover, because many standard cargo policies limit claims for spoilage caused by delay or temperature.
Which Incoterm should I choose?
Choose by who controls freight best, not just by price.
- You already have a forwarder or contract rates into your airport: use FCA, named at the airline or handling agent in Nairobi. You control routing, transit times and costs.
- You want a single price to your airport and the exporter has good airline access: use CPT, and arrange your own perishable insurance.
- You want freight and insurance arranged at origin: use CIP, and ask for the insurance certificate with the shipping documents.
- You want goods delivered to your warehouse: DAP is possible, but import clearance stays with you, and few fresh produce exporters offer it for small consignments.
- Avoid EXW for perishables from Kenya. The buyer would have to handle Kenyan export clearance and phytosanitary certification, which in practice must be arranged locally.
What do Incoterms not cover?
Incoterms do not set the price, payment method or timing, when ownership passes, or what happens if the goods do not match the order. The International Trade Administration notes they also do not specify the documents needed for customs clearance in your country. Those points belong in your quotation, pro forma invoice and purchase contract, including:
- product specification: variety, grade, stem length or calibre, pack size and tolerances
- payment terms and currency
- documents required, such as the KEPHIS phytosanitary certificate, certificate of origin and airway bill (see our guide to KEPHIS phytosanitary export documents)
- the claims process: how quickly to report problems on arrival and what evidence to send
How Zavora agrees shipping terms
At Zavora Fresh Exports, every consignment is flown out of Jomo Kenyatta International Airport (JKIA) in Nairobi. Before sourcing begins, we confirm the dispatch date, airport routing, temperature requirements, delivery terms and payment terms in writing on your quotation and pro forma invoice, so there are no surprises about where our responsibility ends and yours begins. We also prepare phytosanitary and export documentation before departure and send packing photos for your approval. If you are new to buying from Kenya, start with our guide on how to import fresh produce from Kenya.
Get a quote with clear terms
Tell us your produce, volumes, destination airport and preferred Incoterm, and we will confirm availability, routing and pricing in writing. Request a quote or message our team on WhatsApp.
Frequently asked questions
What is the best Incoterm for importing flowers from Kenya?
For flowers flown out of Nairobi, FCA, CPT or CIP are the most suitable Incoterms 2020 rules because they work for air freight. FCA suits buyers with their own forwarder and airline rates. CPT gives a single price to your destination airport, while CIP adds seller-arranged insurance. The right choice depends on who can secure the most reliable flights and cold-chain handling for your route and weekly volumes.
Is FOB Nairobi valid for air freight?
FOB can be written on a contract, but under Incoterms 2020 it is intended for sea and inland waterway transport, where risk passes when goods are loaded on board a vessel. Air cargo is handed to the airline or its agent before loading, which leaves an unclear gap in responsibility. FCA, named at the airline or handling agent at JKIA, is the correct air-freight equivalent and avoids disputes.
Who pays import duty under CPT or CIP?
The buyer. Under CPT and CIP the seller pays the main carriage to the named destination and, for CIP, the insurance, but import clearance, duties, taxes and any destination inspection fees remain the buyer's responsibility. If you want the seller to handle import duties, the rule would be DDP, which is rarely practical for perishable shipments from Kenya because the seller must clear customs in your country.
Does CIP insurance cover spoilage of fresh produce?
Not always. Incoterms 2020 requires the seller under CIP to buy insurance at the Institute Cargo Clauses (A) all-risks level, but cargo policies often exclude or limit loss caused purely by delay or the inherent nature of perishable goods. Ask for the insurance certificate, check the exclusions for temperature and delay, and agree the claims process and evidence needed on arrival before you confirm the order.
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