New law requires importers to secure local marine cargo insurance from next month
To make the process easier for importers, the Marine Cargo Insurance Certificates will be issued through mobile apps, web portals, or platforms provided by insurance companies that are connected to the IRA's electronic system.
Starting February 14, 2025, importers in Kenya will be required to obtain Marine Cargo Insurance from locally licensed insurers before clearing their goods through customs.
This new directive comes after amendments to the Marine Insurance Act (Cap 390) and the Insurance Act (Cap 487) made it mandatory for anyone with an insurable interest in imported goods to secure insurance locally.
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This law, which was introduced by the Finance Act of 2017, seeks to protect Kenyan businesses and strengthen the local insurance sector by ensuring that all marine cargo insurance policies are sourced from licensed Kenyan insurers.
According to a joint public notice from the Insurance Regulatory Authority (IRA) and Kenya Revenue Authority (KRA) on Tuesday, the new system will be fully digital. Importers will need to obtain a digital Marine Cargo Insurance Certificate before they can receive customs clearance.
"The move will streamline the process and ensure that all cargo insurance policies meet the legal requirements," reads the notice.
Mobile apps
To make the process easier for importers, the Marine Cargo Insurance Certificates will be issued through mobile apps, web portals, or platforms provided by insurance companies that are connected to the IRA's electronic system.
Once the digital certificate is processed, it will be automatically sent to the KRA's Integrated Customs Management System (ICMS), allowing for swift clearance of goods.
"This initiative will make the process more efficient and secure, reducing paperwork and the chances of fraud. By working with the IRA's platform, we are ensuring that importers comply with the law while speeding up the clearance of goods at the port," reads the notice further.
Importers will be able to access the required insurance certificates through several platforms, including the M-PESA Super App's Coral Mini App, Kentrade's single window portal, or directly via the insurance underwriters' web and mobile apps.
Once the digital certificate is issued, customs officials will receive an automatic notification, allowing the importer to clear their goods.
To begin, importers or clearing agents will log into one of the available platforms and enter their Import Declaration Form (IDF) number.
After verifying the details, they will choose the appropriate insurance coverage and proceed to make the required payments.
Once the payment is made, the digital certificate will be submitted to the Insurance Regulatory Authority's (IRA) electronic system and then forwarded to the Kenya Revenue Authority (KRA) for final approval.
After the certificate is confirmed by KRA, the cargo will be cleared for import.
The initiative is part of a broader effort to modernise Kenya's customs processes and ensure that all importers follow the legal insurance requirements.
The goal is to support local insurers while making the importation process more efficient.
"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 notice.
For more information, importers have been urged to contact the Insurance Regulatory Authority through their toll-free line at 0800 724 499 or 0719 047 363.
