Mandatory Local Marine Cargo Insurance: Kenya’s Marine Insurance Act Explained
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.
Kenya’s Insurance Regulatory Authority (IRA), estimates that Kenya loses goods worth over Ksh10.2 billion ($78.8 million) every year during shipment. The risk of total loss of goods, delayed deployments, and upended timelines is particularly high for imports of high-value, theft-prone 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:
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:
Importers using the incoterm CIF (Cost, Insurance, Freight) will likely need to change their existing shipping arrangements.
Free on Board incoterms could also be affected, as buyers will no longer be able to work with foreign insurers that may be more cost-effective or familiar.
Local Kenyan insurers may not be equipped to protect sensitive, high-value tech cargo.
A small pool of insurers to choose from could mean limited capacity, slower claims, higher premiums, operational bottlenecks, and less competitive pricing.
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.
Hassle-Free Trade Compliance Solutions
As you can see from our wealth of knowledge, TecEx is your go-to partner for global trade management. With our trade compliance solutions, your IT supply chain will operate without hitting any roadblocks. We help you meet compliance requirements, navigate sanction changes, take advantage of free trade agreements, and more.
See the TecEx difference today.
