Starting February 14, 2025, all importers to Kenya will be required to secure Marine Cargo Insurance (MCI) from Insurers licensed locally under the Insurance Act CAP 487. This directive, jointly announced by the Insurance Regulatory Authority (IRA) and Kenya Revenue Authority (KRA), aims to enhance compliance with legal provisions under the Finance Act 2017 and boost the local insurance sector.
The amendments to The Marine Insurance Act CAP 390, Section 16A, made it mandatory for cargo importers to secure insurance with an insurable interest from Kenyan-based insurers. This regulatory framework ensures that only companies authorized under the Insurance Act CAP 487 can issue such policies, effectively barring international insurers from providing Marine Cargo Insurance for goods imported into Kenya.
In an effort to modernize and streamline operations, the IRA and KRA have introduced a digital certification process. Importers will now be required to obtain Digital Marine Cargo Insurance Certificates as part of the customs clearance process.
The digital certificates will be issued through various platforms connected to the IRA electronic system, such as mobile apps, dedicated portals, and underwriters’ platforms. These certificates will then be electronically submitted to KRA’s Integrated Customs Management System (ICMS), ensuring seamless coordination between insurance providers and customs authorities.
To acquire a Digital Marine Cargo Insurance Certificate, importers must follow these steps:
Active Import Declaration Form (IDF): The process begins with obtaining an active Import Declaration Form (IDF).
Accessing Platforms: Importers can log in to mobile apps or online portals linked to the IRA electronic platform. Available platforms include the Coral Mini App (via the M-Pesa Super App), Coral web-based portal, underwriters’ web-based and mobile app portals, and the KenTrade single window portal.
Linking IDF Details: Importers can retrieve or enter their IDF number to auto-populate necessary cargo details.
Certificate Issuance: After completing the required details and paying premiums, the system generates the digital certificate, which is submitted to the IRA platform.
Integration with Customs: The IRA platform forwards the certificate to KRA’s ICMS. Importers then receive confirmation of successful compliance with the law, expediting the cargo clearance process.
The enforcement of this directive aligns with Kenya’s broader goals of fostering economic growth and ensuring fair competition within the local insurance market. By mandating the use of locally licensed insurers, the policy seeks to curb revenue losses to foreign companies and promote the growth of domestic insurance providers.
Additionally, digitizing the process enhances efficiency and reduces potential bottlenecks in customs clearance, providing a faster, more transparent system for businesses importing goods.
Importers who fail to comply with the directive risk delays in customs clearance or outright rejection of their shipments. The requirement for a Digital Marine Cargo Insurance Certificate underscores the government’s commitment to enforcing the rule and supporting Kenya’s local insurance industry.
The IRA and KRA have launched a public awareness campaign to educate stakeholders on the new requirements. Importers are urged to familiarize themselves with the outlined procedures ahead of the February 2025 deadline to avoid potential disruptions to their operations.
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