In a move that brings Kenya’s maritime trade firmly into the digital age, the country is set to change how importers secure insurance for their cargo.
Starting February 14 of this year, Kenya will require all importers to obtain marine insurance for their cargo digitally from local insurers before receiving customs clearance.
Though some might view it as a bureaucratic hurdle, it is in fact the culmination of a process that began with the Finance Act of 2017, which first mandated local marine cargo insurance.
The new system introduces a streamlined process that will hopefully make compliance easier while strengthening Kenya’s insurance sector.
Fortunately, there are a variety of digital platforms available to importers. The country has integrated the service into the popular M-PESA Super App through the Coral Mini App, alongside web portals and dedicated insurance underwriter platforms.
The system’s architecture is quite sophisticated as it creates a seamless connection between multiple stakeholders, including the Insurance Regulatory Authority (IRA), Kenya Revenue Authority (KRA), and various insurance underwriters.
The process hinges on the Import Declaration Form (IDF), which serves as the backbone of each insurance certificate request.
For importers and clearing agents, the process is simple but comprehensive as follows:
- Access their IDF through any of the approved platforms
- Complete the digital Marine Cargo Insurance Certificate
- Pay the premium
- Submit the certificate to the IRA electronic platform
The system then automatically forwards the certificate to KRA’s Integrated Customs Management System (ICMS), creating a paperless and efficient process from start to finish.
By mandating local insurance coverage, the country is working to build its domestic insurance market capacity while maintaining control over marine cargo insurance policies.
