Following the enactment of the Finance Act, 2017, on June 23, 2017, amendments to the Marine Insurance Act (CAP 390, Section 16A) made it mandatory for all individuals with an insurable interest in marine cargo to procure Marine Cargo Insurance from locally licensed insurers under the Insurance Act (CAP 487) of the Laws of Kenya. Further amendments to the Insurance Act (CAP 487, Section 20(4)) through the Statute Law (Miscellaneous) Amendments Act 2017 prohibited the sourcing of marine cargo insurance policies from foreign insurers. In line with these regulations, the public is notified that effective February 14, 2025, all importers must digitally procure Marine Cargo Insurance cover from locally licensed insurance companies before obtaining customs clearance.
This was announced in a joint statement issued by the Kenya Revenue Authority (KRA) and Insurance Regulatory Authority (IRA).
To facilitate this compliance, the Digital Marine Cargo Insurance Certificate (MCI) will be requested through clearing agents’ and importers’ mobile apps, dedicated portals, or insurance underwriters’ platforms linked to the IRA electronic system. Once processed, the digital MCI will be electronically submitted to the KRA Integrated Customs Management System (iCMS).
The process of purchasing a Digital Marine Cargo Insurance Cover requires an active Import Declaration Form (IDF). Customers can access the digital insurance platform through various mobile and web-based portals integrated with the IRA system, including the Coral Mini App on the M-PESA Super App, the Coral web-based online portal, insurance underwriters’ web-based portals, insurance underwriters’ mobile mini apps on M-PESA, and the Kentrade Single Window Portal.
The importer or clearing agent must retrieve their IDF by entering the full IDF number in the relevant digital portal. Smartphone users can use the Coral Mini App on the M-PESA Super App, automatically displaying IDFs linked to registered clearing agents or cargo consignees in ICMS. Additionally, the Coral Web-Based Portal and insurance underwriters’ platforms will allow IDF queries through the IRA electronic system, while the Kentrade Single Window Portal will provide similar access.
The IDF will contain all relevant cargo details, which will be used to update the digital Marine Cargo Insurance Certificate. Importers or clearing agents must complete the required fields, pay the insurance premium, and submit the digital certificate request through the IRA electronic platform. The IRA platform, integrated with the KRA ICMS, will automatically submit the approved Digital Marine Cargo Insurance Certificate to KRA. Upon successful processing, the importer will receive confirmation of compliance with legal requirements, and approval of the Digital Marine Cargo Insurance Certificate in ICMS will facilitate cargo clearance within the system.
This regulatory measure aims to enhance compliance, streamline the insurance procurement process, and support the local insurance industry. The policy seeks to fortify the domestic insurance sector while promoting efficiency in cargo clearance procedures by ensuring that Marine Cargo Insurance is exclusively obtained from licensed local insurers.
Mr. Roy Mwanthi, the National Chairman of the Kenya International Freight and Warehousing Association (KIFWA), welcomed the idea of local marine insurance but urged the government to address concerns raised by industry stakeholders, including Customs Clearing and Forwarding Agents. He emphasized the need to ensure that the coverage serves the interests of all parties involved. Mr. Mwanthi also serves as a board member of the Federation of East African Freight Forwarders Associations (FEAFFA), the regional apex body for freight forwarders in East Africa.
This article was published by Githua Kihara, an editorial consultant for FEAFFA’s Freight Logistics Magazine. For any inquiries, please contact us via email at editorial@feaffa.com or freightlogistics@feaffa.com, or reach out to Andrew Onionga directly at onionga@feaffa.com / +254733780240.
