Kenya to Enforce Mandatory Local Marine Cargo Insurance for Imports Starting February 2025
Starting February 14, 2025, all importers in Kenya will be required to secure Marine Cargo Insurance (MCI) from locally licensed insurers before clearing their goods through customs. This directive follows amendments to the Marine Insurance Act (Cap 390) and the Insurance Act (Cap 487), making it mandatory for anyone with an insurable interest in imported goods to obtain coverage from Kenyan insurers.
Introduced as part of the Finance Act 2017, the law aims to protect local businesses and bolster the Kenyan insurance sector by ensuring marine cargo insurance policies are sourced domestically.
Fully Digital Insurance System
A joint public notice issued by the Insurance Regulatory Authority (IRA) and the Kenya Revenue Authority (KRA) outlined the implementation of a fully digital insurance system. Importers must now obtain a digital Marine Cargo Insurance Certificate to meet customs clearance requirements.
According to the notice, “The move will streamline the process and ensure that all cargo insurance policies meet the legal requirements.”
How the New Process Works
To simplify the transition, Marine Cargo Insurance Certificates will be issued through digital platforms, including:
- Mobile apps like the M-PESA Super App (Coral Mini App)
- Web portals such as Kentrade’s single window system
- Insurance underwriters’ web and mobile applications
Once an importer processes the certificate, it is automatically integrated into the Kenya Revenue Authority’s Integrated Customs Management System (ICMS). This integration ensures swift clearance of goods and minimizes paperwork.
Step-by-Step Guide for Importers
- Log in: Importers or clearing agents log into a designated platform and enter their Import Declaration Form (IDF) number.
- Verify Details: Confirm shipment details and select the required insurance coverage.
- Make Payment: Complete the payment for the selected insurance policy.
- Receive Certificate: The digital insurance certificate is submitted to the IRA’s system and forwarded to KRA for approval.
- Clear Goods: Once confirmed by KRA, the goods are cleared for import.
This streamlined system aims to make the process more secure and efficient, significantly reducing fraud and delays.
Why This Matters
The initiative represents a broader effort to modernize Kenya’s customs processes while ensuring compliance with legal requirements. By sourcing insurance locally, the program supports the growth of Kenyan insurers and reinforces the economy.
“We are committed to ensuring compliance with the law and protecting Kenya’s economy by fostering a transparent and efficient insurance and customs environment,” reads the joint statement from IRA and KRA.
Contact Information
For more details, importers can reach out to the Insurance Regulatory Authority through their toll-free line at 0800 724 499 or via 0719 047 363.
