• By Raymond Momanyi

Digital Marine Cargo Cover: What the Directive Means for Kenyan Importers & Exporters

1. What’s the Directive?

 
Kenya has rolled out a bold move: every importer must procure a digital marine cargo insurance certificate from a locally-licensed insurer before they clear customs.

• It’s grounded in amendments to the Marine Insurance Act (Cap 390) (Section 16A) and to the Insurance Act (Cap 487) (Section 20(4)). 
• As of 14 February 2025, the new rule is in effect: importers can’t clear without this cover. 
• It must be digital, tied into import systems, the Import Declaration Form (IDF), customs (ICMS) etc. 

In short: The game changed. You’re now required to get your marine-cargo cover locally, digitally, and before your goods move through customs.
 

2. Why this shift? (The “Why care?”)

• Boost local insurance industry – keep the premiums inside Kenya, build local capacity, jobs, expertise. 
• Better risk oversight – digital certificates + integration with customs means less rubber-stamp, more traceability. 
• Compliance & control – ensures importers are insured when they should be, reducing risk exposure. 

3. How does this affect IMPORTERS & EXPORTERS (your business)?

 
For Importers
 
✅ You can’t ignore it – Without a valid local digital marine cargo insurance from a Kenyan insurer, your goods may get stuck at customs.
❗ Cost & choice may be affected – You previously might have used a foreign insurer of your choice (especially on CIF/FOB terms). Now you might have less flexibility, potentially higher premiums or different service levels.
⚠️ Contract terms may need revisiting – If your supplier contract assumed foreign cover or you had cargo insurance arranged abroad, you’ll want to revisit Incoterms (CIF, FOB etc) to ensure you comply.
🔧 Process is now digital – You’ll work via portals/apps, link your IDF, have the certificate uploaded automatically to the customs system. Make sure you’re ready. 
 
For Exporters
 
While the primary directive focuses on imports, exporters need to be aware because:
 

• If you’re shipping goods for someone in Kenya, the importer’s obligations may affect your contract (you may need to factor in the local insurance cover requirement).
• If you export from Kenya, or handle logistics, this shift changes cost structure, service expectations, and risk profile of shipments inbound to Kenya.
• If you offer value-added services (logistics, shipping, cargo handling) you’ll need to align with importers’ obligations to ensure clearance.

4. Specifics you shouldn’t ignore

• The insurance provider must be licensed under Kenya’s Insurance Act. Foreign insurers not licensed locally are now mostly excluded. 
• The digital certificate must be tied to the IDF (Import Declaration Form). If you don’t have the IDF or the details don’t match, you might face delays. 
• Logistics partners (clearing agents, ports, customs brokers) now need to integrate with the digital system. Make sure your supply chain is aligned.
• The local industry still raising concerns: are Kenyan insurers fully ready for high-value, complex cargo? Are premiums competitive? These are practical risks. 

5. Benefits & Risks – Let’s be real

 
Benefits
 

• If done well, this could mean smoother clearance (once procedure mastered), less risk of “un-insured cargo” stuck in limbo.
• Helps build a stronger local insurance market – eventually you may get better local support, claims handling, Kenyan currency service.
• Gives you a compliance edge – you’re not fighting the system, you’re playing by the rules.

Risks/Challenges
 

• Premiums may go up (less competition from foreign insurers, possibly higher risk load).
• If Kenyan insurers don’t yet have capacity/expertise for complex cargo, you might face slower claims, less flexibility.
• If your contract with your supplier doesn’t reflect this new requirement, you might bear extra cost or get caught in legal grey zones.
• If your supply chain is global and uses CIF etc, this shift changes how risk/insurance is allocated.

6. What to do (Action Steps)

• Check your contracts: Ensure Incoterms, who arranges insurance, and which insurer is specified are aligned with the new directive.
• Speak to your insurance broker (like us at Imana Insurance Agency Kenya Ltd!) and make sure the marine cargo cover you use is from a Kenyan-licensed insurer and will integrate digitally.
• Update your logistics partners: Ensure clearing agents, freight forwarders, customs broker know about the digital certificate requirement.
• Plan for cost/benefit: Factor in possible premium changes. Review if the cover terms (risk exclusions, deductible, value) are fit for your cargo.
• Use digital platforms: Become familiar with the portals/apps. The smoother your digital process, the less delay your shipments will face.
• Communicate with your supplier: If you import, let your supplier know of these changes. They may need to change how they handle insurance.
• Monitor the local insurance market: Stay aware of which insurers can underwrite high-value cargo, how their claims record is, how competitive their premiums are.

7. Why this matters for YOU (as an insurance intermediary)

 
Since you’re in the insurance space (via Imana Insurance & MyKava), this shift is huge.
 

• It opens new business opportunities: Every importer now must buy local marine cargo cover. That means increased volume.
• You get to advise clients on compliance – you become the go-to partner to ensure their imports aren’t delayed by insurance issues.
• You can differentiate by helping clients not just buy insurance but align their supply chain & contracts with this directive (value-added service).
• You’ll need to educate clients: Many importers/exporters may not yet be aware of the full implications — you can lead in explaining what it means.
• Track premium & claims trends: Because as local insurers scale up for marine cargo business, pricing, capacity, claims handling will evolve.

8. Insurance Wisdom

 
Kenya’s directive on digital marine cargo cover is a big deal. It’s not just about “get another insurance certificate” — it’s about supply chain, contract terms, choice of insurer, digital integration, cost implications. But if you get ahead of it, you can turn this from a regulatory burden into a competitive advantage.

At Imana Insurance, we’re here to help you compare, buy and save — and importantly, stay compliant. We can guide you in picking the right marine cargo cover, ensuring it meets the local legal requirements, and helping you keep your goods moving smoothly.

📍 Visit us: 4th Floor, Krishna Centre, Woodvale Grove, Westlands, Nairobi
🌐 www.imana.co.ke | www.mykava.co.ke
📞 Call/WhatsApp: +254 796 209402
 
🔍marine cargo insurance Kenya, digital marine cargo cover Kenya, Kenya importers exporters insurance, local marine cargo insurance directive, Kenya Insurance Regulatory Authority marine cover.

#MarineCargoInsurance #KenyaTrade #ImportExportKenya #DigitalInsuranceKenya #LocalInsuranceKenya #ImanaInsurance #MyKavaInsurance #InsuranceCompliance #KenyaLogistics #SupplyChainKenya