Port of Mombasa Sets New Records: How Rising Imports Are Increasing the Need for Marine Insurance in Kenya

The Port of Mombasa, Kenya’s main maritime gateway and one of the busiest ports in Africa, has once again demonstrated its critical role in regional trade. In 2024, the port handled a record 41.1 million tonnes of cargo, marking a 14.1% increase from the previous year. Container traffic surpassed the 2 million TEU (twenty-foot equivalent units) milestone for the first time in over a decade, reflecting a 23.5% rise compared to 2023.

This surge in cargo throughput and container traffic underscores the port’s expanding capacity and efficiency, but it also brings heightened risks for importers and exporters. As trade volumes grow, so does the exposure to potential losses from damage, theft, delays, and other perils during transit. This makes marine insurance in Kenya more essential than ever for businesses relying on the Port of Mombasa.

📈Record-Breaking Growth at the Port of Mombasa

According to the Kenya Ports Authority (KPA), the Port of Mombasa handled 41.1 million tonnes of cargo in 2024, up from 35.98 million tonnes in 2023. This 14.1% increase reflects the port’s resilience and ability to manage growing trade volumes despite global disruptions.

📊Metric	2023 Performance	2024 Performance	Growth Rate
Total Cargo Volume	35.98 million tonnes	41.1 million tonnes	+14.1%
Container Traffic (TEUs)	1,623,080	2,005,076	+23.5%
Imports (TEUs)	716,802	768,088	+7.2%
Exports (TEUs)	686,134	731,934	+6.6%
Transit Cargo	11.4 million tonnes	13.4 million tonnes	+17.4%
Transshipment Traffic	211,144 TEUs	491,666 TEUs	+132.9%

The port’s performance in December 2024 alone was remarkable, handling 3.75 million tonnes of cargo—a 23.7% increase from December 2023. These figures highlight the Port of Mombasa’s strategic importance as East Africa’s primary trade gateway and its growing role in facilitating regional commerce.

🌍The Strategic Importance of the Port of Mombasa

Mombasa serves not only Kenya but also landlocked neighbors such as Uganda, South Sudan, Rwanda, the Democratic Republic of Congo, and Tanzania. Its efficient operations and expanding capacity have made it a preferred hub for transshipment and regional trade.

Ongoing investments in infrastructure, equipment modernization, and operational efficiency have positioned the port to meet increasing global trade demands. This growth is vital for the region’s economic development but also increases the volume and value of goods passing through, amplifying the risks faced by importers and exporters.

⚠️Rising Import Volumes and Increased Risk Exposure

With the surge in cargo volumes, Kenyan businesses face greater exposure to risks such as:

• Cargo damage from handling, weather, or accidents
• Theft and piracy, especially during transit through high-risk maritime zones
• Delays and logistical disruptions caused by congestion, geopolitical crises, or natural disasters
• Losses due to improper documentation or customs clearance issues

The financial impact of these risks can be severe, potentially wiping out profit margins or even threatening business viability. Without adequate protection, businesses bear the full brunt of these losses.

🔗Related Resources	Description
Best Marine Insurance in Kenya	Comprehensive guide to finding the most suitable and affordable marine insurance options
February 2025 Marine Insurance Requirements	Detailed information about the new mandatory marine insurance regulations
Contact Us	Get expert consultation on your marine insurance needs
Get a Quote	Receive a customized marine insurance quote for your cargo

📋Mandatory Marine Insurance for Imports—A New Era

In response to these risks and to enhance revenue collection, Kenya introduced a mandatory marine insurance requirement effective February 2025. Under this directive:

📜Key Requirements

• All imports into Kenya must be covered by locally issued marine cargo insurance
• Insurance certificates must be digital and integrated with Kenya’s customs clearance system (ICMS)
• Importers must obtain marine insurance from approved local insurers before customs clearance

This replaces the previous practice where many importers relied on foreign insurers, ensuring premium retention within Kenya’s insurance industry. This regulation aligns with amendments to the Marine Insurance Act (2017) and is enforced by the Kenya Revenue Authority (KRA) and the Insurance Regulatory Authority (IRA).

🛡️Why Marine Insurance Is Now Essential for Kenyan Importers and Exporters

Marine insurance provides critical protection against the many risks involved in transporting goods by sea, air, or land. Key benefits include:

• Financial protection against loss, damage, theft, or delay of cargo
• Compliance with Kenya’s new legal requirements for imports
• Risk management that supports business continuity and supply chain resilience
• Facilitation of customs clearance and access to financing by demonstrating insured cargo

For businesses operating through the Port of Mombasa, marine insurance is no longer optional—it is a legal and practical necessity.

💼Opportunities and Challenges for the Local Insurance Industry

📈Opportunities

The new marine insurance mandate presents significant opportunities:

• Growth in premium income retained within Kenya
• Expansion of the local marine insurance market
• Development of underwriting and claims management expertise

⚡Challenges

However, challenges remain:

• Ensuring local insurers have the capacity to cover high-value and complex risks
• Educating importers and exporters about the new requirements
• Balancing competitive pricing with comprehensive coverage
• Leveraging digital platforms for efficient policy issuance and claims processing

✅Practical Steps for Importers and Exporters

To comply and protect your cargo:

• Identify approved local marine insurers and digital platforms
• Obtain a marine insurance policy covering the full transit period and value of your cargo
• Ensure your insurance certificate is digital and compliant with KRA’s ICMS system
• Work with experienced clearing agents familiar with the new regulations
• Review policy terms carefully, focusing on coverage scope, exclusions, and claims procedures

🤝Step By Step Insurance: Your Trusted Partner for Marine Insurance in Kenya

As the Port of Mombasa continues to grow and Kenya enforces mandatory local marine insurance, choosing the right insurance partner is crucial. Step By Step Insurance Agency offers tailored marine insurance solutions designed for Kenyan importers and exporters.

🎯Our Services Include

• Comprehensive marine cargo insurance covering loss, damage, theft, piracy, and delays
• Worldwide claims assistance and expert support
• Customized policies for bulk cargo, containerized goods, and specialized shipments
• Full compliance with Kenya’s KRA and IRA marine insurance requirements

Partner with Step By Step Insurance to safeguard your cargo, ensure smooth customs clearance, and protect your business investments.

🎯Conclusion

The Port of Mombasa’s record-breaking cargo volumes underscore Kenya’s growing role in global and regional trade. However, with increased imports comes increased risk. Marine insurance in Kenya is now a legal requirement and a vital tool for managing these risks.

Kenyan businesses must adapt to the new marine insurance regulations, securing local, compliant policies to protect their cargo and investments. With trusted partners like Step By Step Insurance, importers and exporters can navigate this new landscape confidently, ensuring their goods are protected and their operations uninterrupted.