Goods in Transit Insurance vs. Marine Cargo Insurance: What’s the Difference for Kenyan Importers?
For Kenyan importers, safeguarding goods during transit is critical to ensuring business continuity and financial stability. Whether you are moving goods within the country or importing from overseas, understanding the nuances between Goods in Transit Insurance and Marine Cargo Insurance can save you from costly surprises.
Both insurance types protect goods in transit but differ significantly in coverage scope, risks insured, regulatory requirements, and application.
This comprehensive guide will walk you through the key differences, helping you make informed decisions tailored to your import business needs.
Key Takeaways
- Goods in Transit Insurance covers domestic transportation within Kenya
- Marine Cargo Insurance is mandatory for imports and covers international shipments
- Kenyan regulations now require local marine insurance for all imports
- Proper coverage ensures protection against theft, damage, and regulatory penalties
- Combining both policies provides end-to-end protection
Table of Contents
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| Article | Description |
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| Kenya as East Africa’s Logistics Hub | How Goods in Transit Insurance supports Kenya’s logistics sector |
| Why Transport Companies Need GIT | Essential coverage for Kenyan transport businesses |
| Rising Imports and Marine Insurance | How import growth drives marine insurance demand |
| Digital Marine Insurance System | Kenya’s new digital platform for marine insurance |
| Introduction to Marine Insurance | Fundamentals of marine insurance in Kenya |
Definitions and Core Concepts
Goods in Transit (GIT) Insurance
Goods in Transit Insurance covers loss or damage to goods while being transported within Kenya by road, rail, or inland waterways. It protects local manufacturers, distributors, retailers, and transport companies against risks like collision, theft, or overturning of vehicles.
Marine Cargo Insurance
Marine Cargo Insurance protects goods during international transit, covering shipments from the overseas point of origin through sea, air, or land transport until delivery to the final destination in Kenya. It is essential for importers and exporters to safeguard against risks such as shipwreck, piracy, weather damage, and port handling incidents.
Scope of Coverage
| Feature | Goods in Transit Insurance | Marine Cargo Insurance |
|---|---|---|
| Geographical Coverage | Domestic transit within Kenya | International transit from origin overseas to Kenya |
| Modes of Transport | Road, rail, inland waterways | Sea, air, road, rail (international) |
| Risks Covered | Collision, theft, overturning, fire | Sinking, collision, piracy, weather, fire, general average |
| Policy Duration | Per trip or annual | Per shipment, open cover, or annual |
Goods in Transit Insurance typically covers goods from the moment they leave the warehouse until they reach their domestic destination. Marine Cargo Insurance covers a broader journey—from the overseas warehouse or port, through ocean or air transit, and often includes inland transit within Kenya after arrival.
Key Differences Explained
A. Geographical Reach
Goods in Transit Insurance applies only within Kenyan borders, protecting goods transported domestically.
Marine Cargo Insurance covers the entire international journey, including overseas transit and delivery to the importer’s warehouse in Kenya.
B. Regulatory Requirements
Kenya’s government recently mandated that all imported goods must have Marine Cargo Insurance issued by a locally licensed insurer. This ensures regulatory compliance, supports the local insurance industry, and offers importers better claims protection and faster settlements.
Goods in Transit Insurance is optional but highly recommended for domestic shipments to protect goods after they arrive in Kenya.
C. Types of Goods Covered
GIT Insurance covers commercial goods, perishables, fragile items, construction materials, and machinery transported locally.
Marine Cargo Insurance covers all types of imports, including bulk cargo, containerized goods, machinery, vehicles, and project cargo.
Overlapping Areas and Exclusions
Sometimes, coverage can overlap, especially when goods are insured from warehouse to warehouse (origin to final destination). Some Marine Cargo policies include inland transit within Kenya, overlapping with GIT coverage.
Common exclusions in both policies include:
- Loss due to improper packing or inherent vice (natural deterioration)
- Delay or loss of market
- War or nuclear risks (unless specifically covered)
- Willful misconduct by the insured
Choosing the Right Cover: A Guide for Kenyan Importers
- Use Marine Cargo Insurance for all international shipments to comply with Kenyan regulations and cover overseas transit risks.
- Opt for Goods in Transit Insurance to protect goods during domestic transportation after arrival.
- Consider combining both policies for seamless, end-to-end coverage.
- Evaluate the value, nature, and route of goods to determine coverage limits.
- Consult insurance experts to tailor coverage to your business needs.
Regulatory Updates and Compliance in Kenya
Since February 2025, Kenyan importers must obtain Marine Cargo Insurance from local insurers per the Insurance Act cap 497. This policy provides Warehouse-to-Warehouse cover, unlike foreign marine policies that terminate at the port, ensuring protection during inland transit within Kenya.
Benefits include:
- Faster claims processing and regulatory protection
- Avoidance of currency exchange complications with foreign insurers
- Support for the local insurance industry
Non-compliance can lead to customs clearance delays and penalties.
How Step by Step Insurance Can Help
Navigating these insurance requirements and options can be complex. Step by Step Insurance offers:
- Personalized Assessment: Understanding your import volume, routes, and goods to recommend appropriate coverage.
- Access to Leading Insurers: Partnering with top local insurers to provide competitive Marine Cargo and Goods in Transit policies.
- Compliance Support: Ensuring your insurance meets Kenyan regulatory mandates.
- Documentation Assistance: Helping with paperwork, declarations, and claims processing.
- Ongoing Service: Policy reviews and updates as your business grows or changes.
With Step by Step Insurance, Kenyan importers gain peace of mind knowing their goods are protected throughout the entire journey.
Frequently Asked Questions
Can I use Goods in Transit Insurance for imported goods?
Only for domestic transit within Kenya after the goods have cleared customs. Marine Cargo Insurance covers the international leg.
What documents are needed for Marine Cargo Insurance?
Shipping documents, commercial invoices, packing lists, and customs clearance papers.
Does Marine Cargo Insurance cover inland transit within Kenya?
Yes, local Marine Cargo policies now often include inland transit from port to warehouse.
Conclusion
For Kenyan importers, understanding the difference between Goods in Transit Insurance and Marine Cargo Insurance is crucial for comprehensive cargo protection and regulatory compliance. Marine Cargo Insurance is mandatory for imports, covering international transit and often inland delivery, while Goods in Transit Insurance safeguards domestic transportation within Kenya.
Partnering with Step by Step Insurance ensures you get tailored advice, access to the best policies, and support navigating Kenya’s evolving insurance landscape. Protect your goods, your business, and your peace of mind—get in touch today to secure the right coverage.
