Starting February 14, 2025, all Kenyan importers must secure Marine Cargo Insurance from local insurers to cover their shipments.
In a joint statement issued in January, the Kenya Revenue Authority (KRA) and the Insurance Regulatory Authority (IRA) announced that clearing agents at ports of entry would only accept the digital Marine Cargo Insurance certificate.
This certificate will be accessible via mobile applications, online portals, and other digital platforms of insurance firms linked to the IRA electronic system.
While authorities argue that the directive will ensure compliance with legal insurance requirements, vehicle importers have raised concerns over being forced to use local insurers, some of whom charge higher premiums.
According to the Car Importers Association of Kenya (CIAK), the regulation limits importers’ freedom to choose their preferred insurers, a principle supported by the Kyoto Convention on global trade.
The requirement is anchored in recent amendments to the Marine Insurance Act and the Insurance Act, which mandate that individuals with insurable interest in imported goods must obtain coverage from Kenyan insurance providers.
To obtain the digital Marine Cargo Insurance Certificate, importers must present an active Import Declaration Form (IDF). The digitization process for the certificate will be detailed in local insurance firms’ mobile applications and online portals.
Data from the National Transport and Safety Authority (NTSA) indicates that more than sixty thousand vehicles were imported into Kenya between January and August 2024. Although vehicle import volumes have declined, they remain a significant contributor to Kenya’s balance of payments and government revenue.
The regulation is seen as part of efforts to strengthen the local insurance sector, which has struggled to expand its market reach. While global insurance penetration for businesses stands at seven percent, Africa lags at three percent. Kenya’s rate is even lower, at approximately two point three percent.
Motor insurance remains the backbone of the industry due to its mandatory nature, but stakeholders hope that policies like the Marine Cargo Insurance requirement will boost the sector’s growth.
