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?
Kenya’s Marine Insurance Act came into effect in July 2025. It specifies “A person with insurable interest in marine cargo shall place marine cargo insurance with an insurer registered under the 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 regarding expensive and 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?
In summary, the directive 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 specifically 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 the insurer pays out a claim, it can take over rights to the remaining goods and any claims associated with them, under the right of subrogation. This means the insurer can claim refunds or damages from third parties, or even resell what remains of the goods.
How Can TecEx Help With Mandatory Local Marine Cargo Insurance?
TecEx is locally registered in many countries, with the ability to offer cover your goods across their shipping journey. As your Importer of Record, we don’t only handle Kenyan customs compliance, but we can also protect your goods.
With our Liability Cover offering, your long-standing, integrated supply chain can remain unchanged despite local marine cargo insurance requirements. You won’t need to change your Incoterms or adjust supplier contracts. You can continue managing your established global logistics your way.
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
According to the KRA and IRA’s joint statement about enforcing the Marine Insurance Act, importers cannot proceed through customs clearance without a digital MCIC. Acquiring this involves overcoming several regulatory hurdles.
One Partner For Global Shipping Risk Management
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 footprint. With vast knowledge and experience facilitating seamless tech imports and exports, our cover reflects the value and sensitivity of your goods.
We cover 110% of the value of your tech across its entire journey, so whether it’s at sea, sitting 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.
We can cover any tech, from dangerous goods like lithium batteries to dual-use technologies like semiconductors, or even refurbished and second-hand items.
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
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.
