New Digital Platform to Link Marine Cargo Insurance with Customs Clearance
The Insurance Regulatory Authority (IRA) has announced that all importers into Kenya will be required to obtain locally issued Marine Cargo Insurance cover before customs clearance beginning 1 July 2026.
The directive follows the implementation of a new digital insurance verification platform developed through collaboration between the Insurance Regulatory Authority (IRA), the National Treasury, the Kenya Revenue Authority (KRA) and Safaricom PLC. The platform will integrate directly with KRA’s Integrated Customs Management System (ICMS), creating an automated verification process for marine cargo insurance certificates.
The move is expected to significantly increase compliance with existing insurance legislation while retaining marine insurance premiums within Kenya’s insurance industry.
What the Law Says
According to Section 16A of the Marine Insurance Act (CAP 390), any person with an insurable interest in marine cargo is required to place Marine Cargo Insurance cover with an insurer licensed under the Insurance Act (CAP 487). Additionally, Section 20(4) of the Insurance Act makes it an offence to place Kenyan insurance business with an insurer that is not licensed in Kenya without prior written approval from the Commissioner of Insurance.
While these provisions have existed for years, enforcement has historically been difficult due to limited visibility into insurance arrangements attached to imported goods.
The newly launched digital platform is designed to address this challenge.
How the New System Will Work
Beginning July 2026, importers will be required to secure a Digital Marine Cargo Insurance Certificate before customs clearance can be completed.
The process will involve:
- Obtaining an active Import Declaration Form (IDF)
- Purchasing Marine Cargo Insurance from a licensed Kenyan insurer
- Making payment through the integrated eCitizen payment gateway
- Automatic submission of the insurance certificate and payment confirmation to KRA’s ICMS platform for customs processing
The entire process will be conducted digitally through insurer, broker, agent or other approved online portals connected to the IRA platform.
A Win for Kenya’s Insurance Industry
Industry analysts view the directive as a significant development for Kenya’s insurance sector.
For years, a substantial portion of marine cargo insurance linked to imports has been arranged offshore, resulting in premium leakage from the local market. By enforcing local placement requirements, the regulator aims to ensure that marine insurance business associated with Kenyan imports benefits locally licensed insurers.
The move could increase:
- Marine insurance premium volumes
- Local underwriting capacity
- Retention of insurance premiums within Kenya
- Growth opportunities for brokers and insurance intermediaries
- Tax revenues generated from insurance transactions
Implications for Importers
Importers should begin preparing for the transition well ahead of the July 2026 implementation date.
Businesses involved in:
- Manufacturing
- Retail
- Distribution
- Construction
- Automotive imports
- Consumer goods
will need to ensure that marine insurance arrangements are incorporated into their importation processes before cargo arrives in Kenya.
Failure to comply may result in delays in customs clearance.
Accelerating Insurance Digitisation
Beyond regulatory compliance, the initiative represents another step in the digitisation of Kenya’s insurance sector.
The integration of insurance verification into customs clearance systems demonstrates how technology can improve regulatory oversight while reducing manual processing and fraud risks.
As Kenya continues modernising its financial services ecosystem, the new marine cargo insurance platform could serve as a model for future insurance compliance initiatives across other classes of business.
Looking Ahead
With less than a year before implementation, insurers, brokers, freight forwarders and importers are expected to begin adapting their systems and processes to align with the new requirements.
For Kenya’s insurance industry, the directive marks one of the most significant regulatory developments in recent years, one that could reshape marine insurance distribution, improve compliance and strengthen the local insurance market.
Source: Insurance Regulatory Authority (IRA) Public Notice on Enforcement of Local Marine Cargo Insurance Cover for All Imports.