New Marine Cargo Insurance Rules in Kenya: What Importers and Exporters Must Know in 2026

Kenya’s import and export industry has entered a new era.

From 1st July 2026, the Government of Kenya has intensified the enforcement of mandatory locally issued Marine Cargo Insurance (MCI) through the newly launched Digital Marine Cargo Insurance (DMCI) Platform. The initiative is designed to improve compliance, streamline customs clearance, reduce tax leakage, and strengthen Kenya’s insurance industry by ensuring marine cargo insurance is purchased from insurers licensed within the country.

If you’re an importer, exporter, clearing and forwarding agent, logistics company, or business that regularly ships goods internationally, understanding these new requirements is essential to avoid delays, additional costs, and compliance issues.

In this guide, we’ll explain what has changed, who is affected, and how your business can stay compliant.

What Are the New Marine Cargo Insurance Rules?

The Government has reinforced the implementation of existing provisions under the Marine Insurance Act and the Insurance Act by requiring that all imported cargo destined for Kenya be covered by Marine Cargo Insurance issued by insurers licensed in Kenya before customs clearance. Enforcement is now supported by a fully digital verification process integrated with government systems.

To facilitate compliance, industry stakeholders launched the Digital Marine Cargo Insurance (DMCI) Platform, allowing importers and clearing agents to obtain and verify marine cargo insurance certificates electronically before cargo is released by customs. This mirrors a broader regional trend, as several East African economies have been tightening insurance regulatory oversight to keep premiums and risk within domestic markets.

Why Was the New Digital Platform Introduced?

For years, Kenya experienced several challenges in marine cargo insurance, including:

• Cargo arriving with inadequate insurance cover.
• Difficulties verifying insurance certificates.
• Insurance premiums flowing to foreign insurers instead of supporting the local market.
• Revenue leakage and tax compliance challenges.
• Delays in customs verification processes.

The Digital Marine Cargo Insurance Platform addresses these issues by linking insurers, importers, clearing agents, the Insurance Regulatory Authority (IRA), the Kenya Revenue Authority (KRA), eCitizen, and payment systems into one digital ecosystem for faster verification and compliance.

Who Must Comply?

The new requirements affect virtually everyone involved in international trade, including:

• Importers
• Exporters
• Clearing and forwarding agents
• Freight forwarders
• Manufacturers importing raw materials
• Wholesalers and distributors
• Retail businesses sourcing products overseas
• E-commerce businesses importing inventory
• Logistics companies

Whether you’re importing machinery, electronics, pharmaceuticals, textiles, building materials, or consumer goods, compliance is essential.

What Is Marine Cargo Insurance?

Marine Cargo Insurance protects goods while they are being transported internationally by:

• Sea freight
• Air freight
• Rail (where applicable)
• Multimodal transport involving international shipping

Depending on the policy, Marine Cargo Insurance can provide protection against risks such as:

• Accidental damage
• Theft
• Fire
• Storms
• Vessel accidents
• General average contributions
• Loss during transit
• Natural disasters affecting cargo

Without adequate cover, businesses may suffer significant financial losses if cargo is damaged or lost before reaching its destination. For a deeper look at how cover extends beyond the port, see our guide comparing Goods in Transit and Marine Cargo Insurance.

How the Digital Marine Cargo Insurance Platform Works

The new process has been designed to simplify compliance.

Step 1: Purchase Marine Cargo Insurance

Before your shipment arrives in Kenya, obtain Marine Cargo Insurance from a licensed Kenyan insurer or through an authorized insurance intermediary such as Step by Step Insurance.

Step 2: Digital Certificate Generation

A Digital Marine Cargo Insurance Certificate is generated electronically.

Step 3: System Integration

The certificate is automatically linked to government systems, including the KRA Integrated Customs Management System (ICMS), allowing customs officers to verify compliance digitally.

Step 4: Customs Clearance

Once verified, the customs clearance process becomes more efficient since insurance validation happens electronically.

What Happens If You Don’t Comply?

Failure to comply with Kenya’s marine cargo insurance requirements can result in several costly consequences, including:

Delayed Customs Clearance

Goods may not be cleared until compliant marine cargo insurance has been obtained and verified.

Increased Storage Costs

Delays at ports or airports can lead to:

• Demurrage charges
• Storage fees
• Port handling costs

Business Disruption

Delayed cargo can interrupt:

• Manufacturing schedules
• Retail inventory
• Customer deliveries
• Supply chain operations

Additional Administrative Costs

Businesses may need to urgently arrange compliant insurance, causing avoidable expenses and operational delays.

Benefits of the New Marine Cargo Insurance System

While compliance is mandatory, the reforms also bring several advantages.

Faster Cargo Clearance

Digital verification reduces paperwork and manual processing.

Improved Transparency

Electronic verification minimizes fraud and fake insurance certificates.

Better Risk Protection

Businesses receive proper insurance coverage from regulated insurers operating in Kenya, consistent with standards set out by bodies such as the Insurance Regulatory Authority.

Stronger Local Insurance Industry

Keeping premiums within Kenya supports the growth of local insurers and contributes to the country’s economy.

What Businesses Should Do Now

If your business imports goods, now is the time to prepare.

Review Your Shipping Arrangements

Confirm whether your suppliers are using shipping terms that align with Kenya’s current insurance requirements. Businesses relying on supplier-arranged insurance should assess whether changes are needed to avoid paying for duplicate cover.

Work With Licensed Insurance Providers

Always obtain Marine Cargo Insurance through insurers licensed by the Insurance Regulatory Authority (IRA) or an authorized insurance intermediary.

Plan Early

Arrange your insurance before cargo arrives to avoid unnecessary delays.

Keep Documentation Ready

Ensure all shipping documents are complete and accurate before customs processing begins. Cross-checking requirements against the Kenya Revenue Authority’s customs guidance can help avoid last-minute surprises.

Seek Professional Advice

Marine Cargo Insurance requirements can vary depending on the nature and value of your shipment. Professional guidance helps ensure your cover matches your business needs.

Why Choose Step by Step Insurance?

At Step by Step Insurance, we help businesses navigate changing insurance regulations with confidence.

Our experienced advisors can help you:

• Arrange compliant Marine Cargo Insurance
• Compare leading insurers in Kenya
• Ensure your shipments meet regulatory requirements
• Provide professional claims support
• Offer risk management advice for importers and exporters

Whether you’re importing goods occasionally or managing large-scale international trade, we can help you secure the right protection while keeping your business compliant.

Frequently Asked Questions (FAQs)

Final Thoughts

Kenya’s Digital Marine Cargo Insurance Platform marks a significant step toward modernizing trade compliance and strengthening the country’s insurance sector. While the new requirements introduce additional compliance responsibilities, they also create a more transparent, efficient, and secure environment for international trade.

If your business imports or exports goods, preparing early is the best way to avoid costly delays and ensure uninterrupted operations.

Need Marine Cargo Insurance? Step by Step Insurance is here to help you navigate the new regulations with confidence. Contact our team today for expert advice, competitive quotations, and compliant Marine Cargo Insurance solutions tailored to your business.