In some countries, marine cargo insurance is compulsory. Imports to these countries must often be insured by insurance companies locally registered in the destination country. While this can benefit domestic insurance sectors, it causes many complications for importers.
TecEx is a locally registered entity in locations all over the world. With our extensive Liability Cover offering, we can cover your tech in locations, like Kenya, that enforce mandatory local marine cargo insurance.
Why has Kenya Implemented The Marine Insurance Act?
The Kenya Marine Insurance Act requires that any person who has an insurable interest in marine cargo must obtain marine cargo insurance from an insurer that is registered under the Marine Insurance Act.
Imports to Kenya have historically faced significant physical risks, such as theft, damage, and inadequate infrastructure. Issues like port congestion, insufficient storage facilities, and poor roads can cause delays that increase the risk of damage and loss, especially with expensive, sensitive tech gear.
As a result, Kenya implemented the Marine Insurance Act, which aims to:
When Kenya made it compulsory for importers to insure marine cargo under local companies, Agayo Ogambi, CEO of the Shippers Council of Eastern, stated, ‘’The beauty of this is that Shippers are now involved and 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.”
What Does Kenya’s Marine Insurance Act Require?
The Marine Insurance Act stipulates:
- Importers must hold a Marine Cargo Insurance (MCI) Certificate to clear customs in Kenya.
- Local and foreign importers must purchase marine cargo insurance from a locally registered Kenyan insurer, unless the Commissioner of Insurance grants an exemption.
- The regulation applies to all movable goods, from AI chips to cables,
- Importers must disclose every material circumstance affecting risk to the insurer, such as tech value, packaging, and origin.
- The insurance must be in place before a loss or damage occurs, and
- If a claim is paid, the insurer can exercise subrogation rights, take over the remaining goods, pursue recovery from third parties, or resell them to recoup losses.
How Can TecEx Help With Mandatory Local Marine Cargo Insurance?
TecEx is locally registered in many countries and can offer coverage for your goods throughout the entire shipping journey.
As your Importer of Record, we not only handle Kenyan customs compliance but also protect your goods.
With our liability cover, your long-standing, integrated supply chain can remain unchanged despite local marine cargo insurance requirements. You won’t need to change your Incoterm or adjust supplier contracts. You can continue managing your established global logistics without derailing your supply chain.
What Does The Marine Insurance Act Mean For Tech Importers?
While Kenya’s Marine Insurance Act ensures that imports are insured against shipping risks and that shipments are inherently more compliant, there are some potential downsides. Key industry players requested the suspension of the act in February 2025 due to concerns about its potential for “adversely affecting trade, increasing the cost of doing business and hindering Kenya’s industrialisation agenda.”
Clyde & Co explains that the Marine Insurance Act stands to disrupt long-standing international trade norms, supply chains, and incoterms, while raising costs for importers. Potential disruptions include:
Marine Cargo Insurance (MCI) Certificate | Kenya
Importers cannot proceed through customs clearance without a digital Marine Cargo Insurance Certificate. Acquiring this certificate involves overcoming several regulatory hurdles.
One Partner For Global Shipping Risk Management
Navigating Kenya’s Marine Insurance Act doesn’t have to disrupt your global logistics strategy.
When you partner with TecEx and leverage our expansive liability cover offering, we bridge the compliance gap created by mandatory local marine cargo insurance.
We can handle your risk management and trade compliance across your entire deployment journey. With vast knowledge and experience facilitating seamless tech imports and exports, our cover reflects the value and sensitivity of your goods.
We can cover tech, from dangerous goods and lithium batteries to dual-use technologies and semiconductors, or even refurbished and second-hand items.
We cover 110% of the value of your tech until it reaches its final destination, so whether it’s at sea, in customs, in a warehouse, or on a short drayage movement, it’s always protected. On top of this, if damage or loss does occur, we will manage claims on your behalf, ensuring prompt processing and minimizing project delays.
Unlock The Ultimate Liability Cover For Your Tech
Fill in the form to get in touch, and our expert team will contact you with a bespoke liability cover and trade compliance solution to import your tech to Kenya.
Unlock The Ultimate Liability Cover For Your Tech
Contact us, and one of our experts will be in touch to assist with all your marine cargo insurance needs and help get your goods into Kenya.
