Starting February 14, 2025, all importers in Kenya will be required to procure digital marine cargo insurance from locally licensed insurers. This landmark directive, issued jointly by the Insurance Regulatory Authority (IRA) and the Kenya Revenue Authority (KRA), aims to ensure comprehensive cargo risk coverage during transportation.
The digital marine cargo insurance policy will be seamlessly integrated into Kenya’s customs clearance process. Importers will acquire the insurance via the IRA’s digital platform, with the certificate electronically submitted to KRA’s Integrated Customs Management Systems (ICMS). This automation is expected to enhance efficiency and reduce clearance delays at customs points.
To access the insurance, an importer must possess an active Import Declaration Form (IDF). This form, which details the specifics of the imported goods, will be used to generate the digital marine insurance certificate. Importers will complete the necessary fields, pay the insurance premiums, and submit the form through the IRA platform.
Once the insurance certificate is issued, it will be automatically forwarded to the KRA system. Importers will then receive a notification to download the certificate, which will be critical for customs clearance. According to the joint statement from the two authorities, “The confirmation and approval of the Digital Marine Cargo Insurance Certificate will facilitate clearance of cargo in the ICMS.”
This new measure underscores the government’s commitment to digital transformation and its efforts to streamline the importation process. It also aims to promote local insurance providers, ensuring that premiums paid for cargo insurance remain within the Kenyan economy.
The directive is expected to enhance accountability, reduce risks associated with shipping, and safeguard importers from potential losses during transportation. Importers are advised to familiarize themselves with the digital process and ensure timely procurement of the marine cargo insurance to avoid disruptions.
This initiative represents a significant shift in Kenya’s trade and insurance landscape, aligning with global best practices in cargo risk management and digital customs operations.
