Importers will starting February 14 be required to procure digital marine cargo insurance from local firms before clearing all insurable imports into the country.
This comes as Kenya Revenue Authority and the Insurance Regulatory Authority (IRA) take yet another shot at localising marine insurance which is yet to pick since it was mooted about a decade ago, despite local industry players affirming their capacity to handle large shipments and pay claims, with back up from re-insurance companies they have contracts with.
“Capacity for marine insurance is available both at insurance and re-insurance levels. If capacity for insurance is available, capacity for claims management and payment is also available,” Association of Kenya Insurers (AKI) Executive Director Tom Gichuhi told the Star yesterday.
Following the enactment of the Finance Act, 2017, on June 23 same year, the amendments to The Marine Insurance Act CAP 390, Section 16A made it mandatory for any person with insurable interest in marine cargo to place insurance with a locally licensed underwriter.
Further, amendments to the insurance Act CAP 487 section 20(4) through the Statute Law (Miscellaneous) Amendments Act 2017, outlawed sourcing of marine cargo insurance policies from insurers not locally licensed under the Insurance Act. The cargo is insured against any risks during transportation.
“To ensure full compliance with the indicated legal provisions, the public is hereby notified that effective 14th February 2025, all importers shall be required to digitally procure Marine Cargo Insurance cover for their imports from locally licensed Insurance companies in accordance with the above statutes, prior to obtaining custom clearance,” KRA and IRA said in a joint statement.
The Digital Marine Cargo Insurance Certificate request will be submitted through the clearing agents and importers’ mobile Apps, dedicated portals, or insurance underwriters platforms connected to the IRA electronic platform.
The processed digital marine certificate from the IRA Platform will be electronically submitted to the KRA Integrated Customs Management Systems (iCMS).
A Digital Marine Certificate shall be issued against an active IDF (Import Declaration Form), which contains all the necessary details on the imported cargo.
The customer or clearing agent will be required to complete the required fields for the Digital Marine Cargo Insurance Certificate, pay the respective premiums and submit the digital certificate to the IRA electronic platform.
The IRA platform that is integrated to iCMS will then submit the insurance certificate to KRA. Upon receipt of the Digital Marine Cargo Insurance Certificate, the customer will receive a confirmation of successful receipt and digitisation of MCI in compliance with the law, facilitating clearance of cargo.
The latest development is expected to help the insurance industry tap into the multi-billion marine segment, with Kenya remaining a net importer with an annual import bill of above Sh2.6 trillion.
Of this, about 90 per cent has traditionally been insured with offshore underwriters with local marine insurance premiums at a mare Sh5 billion of the Sh362 billion industry total gross written premium as at last year.
“ The beauty of this is that shippers
are now involved and are guaranteed
that a cover is in place, claims can be
settled without delays and we can
develop our insurance sector, create
employment and develop our country,” the Shippers Council of Eastern
Africa CEO Agayo Ogambi said on
Wednesday.
