Starting February 14th 2025, all Kenyan importers are expected to get Marine Cargo insurance from local firms to cover their commodities.
- In a joint communique released in January, the Kenya Revenue Authority (KRA) and the Insurance Regulatory Authority (IRA) stated that the digital Marine Cargo insurance certificate will be submitted to clearing agents at the ports of entry.
- It will be accessed through mobile apps, portals, and platforms of local insurance companies linked to the IRA electronic platform.
- The directive was opposed by vehicle importers who said it was unfair to coerce them into covering their cargo with insurers they don’t want, or that have expensive premiums that could eventually be passed on to customers.
“The move will streamline the process and ensure that all cargo insurance policies meet the legal requirements,” the notice said.
The push to acquire local insurance for marine cargo was sealed by the amendments to the Marine Insurance Act and the Insurance Act , which determined that anyone with insurable interest in imported goods must procure the services of local insurance companies. In its pushback, the Car Importers Association of Kenya (CIAK) also cited that the order violated the Kyoto Convention, which supports importers’ principle of choice globally.
The Digital Marine Certificate will be issued against an active Import Declaration Form (IDF). The instructional process of digitizing a Marine Cargo Insurance Cover will be available in the firms’ apps and online portals.
Data from the National Transport and Safety Authority (NTSA) reveals that over 60,000 vehicle units were imported in Kenya between January and August last year. Despite the falling figures, vehicle imports remain a crucial spine in the country’s balance of payments and a revenue pool for the state.
The move is intended to promote local insurance companies, which have been facing headwinds in broadening their presence in the market. The rate of insurance uptake for businesses globally stands at 7%, and it is only 3% in Africa. It is even lower than the regional rate in Kenya, standing at just 2.3%.
Motor insurance is the strongest stilt holding the business because it is mandatory for every vehicle owner to acquire it.
