As Kenya’s economy continues to expand and integrate into the global marketplace, the importance of cross-border trade cannot be overstated. 

Importers and exporters form the backbone of this trade, connecting Kenya to markets across Africa and the world.

From agricultural exports like coffee and tea to manufactured imports like electronics and machinery, the movement of goods drives the country’s economic engine. 

However, this movement is fraught with unique risks that can jeopardize business operations, profitability, and long-term growth.

In 2025, as businesses resume full-scale operations and adapt to a post-pandemic world, protecting the value of goods during transit has never been more critical. 

Goods in Transit Insurance (GIT) emerges as an indispensable tool for mitigating risks and safeguarding the investments of Kenya’s importers and exporters. 

Here’s why GIT is essential and how Step By Step Insurance Agency can help you ride the waves of risk with confidence.

What is Goods-in-Transit Insurance

Goods-in-Transit Insurance (GIT) is a type of insurance policy designed to protect businesses and individuals against financial losses or damages that occur to goods while they are being transported from one location to another.

This includes coverage for goods transported by road, rail, air, or sea. 

The policy ensures that the value of the goods is safeguarded against risks such as theft, damage, loss, or unforeseen circumstances during transit.

The Complex Risks of Cross-Border Trade for Goods in Transit

Cross-border trade comes with inherent complexities and risks. For Kenyan businesses involved in importing and exporting goods, these challenges can be broadly categorized as follows:

1. Transit Risks:

Goods transported over long distances by road, sea, or air are exposed to accidents, theft, hijacking, and damage.

Inadequate infrastructure, such as poorly maintained roads or overloaded ports, increases the likelihood of mishaps.

2. Natural Disasters:

Unpredictable weather events like floods, storms, or extreme heat can damage goods, particularly perishables.

Climate change has heightened the frequency and severity of such events, adding another layer of uncertainty.

3. Political and Social Risks:

Political instability, strikes, or civil unrest in transit countries can disrupt the smooth flow of goods.

Border delays and corruption often lead to financial losses or missed deadlines.

4. Economic and Market Risks:

Currency fluctuations can alter the value of goods in transit, impacting overall profitability.

Changes in international trade policies or tariffs can cause unexpected financial strain.

5. Liability Risks:

Freight carriers may fail to deliver goods in proper condition or may lose shipments entirely.

In some cases, disputes arise regarding responsibility for damage or loss.

6. Cyber Risks:

In today’s digital age, cross-border trade increasingly relies on electronic documentation and systems, which are vulnerable to cyberattacks and data breaches.

The Role of Goods in Transit Insurance

Goods in Transit Insurance (GIT) is more than just a safeguard for businesses involved in the transportation of goods; it is a vital component of operational resilience and strategic planning.

For Kenyan importers and exporters, whose livelihoods often depend on the smooth movement of goods within the country or across borders, GIT serves as a cornerstone for mitigating risks and fostering business growth.

The movement of goods, whether by road, sea, air, or rail, is fraught with uncertainties.

From accidents and theft to delays and damages caused by natural disasters, the risks are numerous.

GIT offers comprehensive protection against these risks, ensuring that businesses can navigate the unpredictable terrain of logistics and trade with confidence. 

Here how Goods in Transit Insurance adds immense value to Kenyan businesses:

1. Protection Against Financial Losses

Goods in Transit Insurance acts as a financial shield, covering losses incurred due to damage, theft, accidents, or natural disasters during transit. 

For businesses, this protection ensures that a single unforeseen incident does not result in devastating financial losses. For example:

• An exporter shipping fresh produce like flowers or vegetables can recover losses if a shipment is delayed or spoiled due to unforeseen weather conditions.
• Importers of high-value goods like electronics or machinery can rest assured knowing they\u2019ll be compensated for damages caused during shipping.

By absorbing the financial shock of such events, GIT ensures that businesses remain financially stable and capable of continuing their operations without significant setbacks.

2. Business Continuity and Resilience

In a competitive business environment, interruptions can have long-lasting effects on a company’s reputation and operations. 

Goods in Transit Insurance provides the stability businesses need to maintain continuity even when things go wrong. 

For instance:

• A wholesaler whose shipment of goods is stolen en route to a client can quickly recover the value of the goods and restock without disrupting supply chains.
• An exporter whose cargo is damaged at a port can file a claim and maintain customer confidence by fulfilling orders promptly.

This resilience allows businesses to meet deadlines, honor commitments, and sustain client relationships, all of which are critical to long-term success.

3. Peace of Mind for Business Owners

The risks involved in moving goods can be a constant source of worry for business owners. GIT provides peace of mind by transferring these risks to the insurer. 

With a reliable insurance policy in place, importers and exporters can focus on growing their businesses instead of worrying about potential mishaps during transit.

Knowing that shipments are protected gives business owners the confidence to explore new markets, expand operations, and take calculated risks that drive growth.

4. Customized Coverage for Diverse Needs

Every business has unique needs, and Goods in Transit Insurance offers flexible and customizable policies to address these. 

For example:

• A company shipping perishables like dairy products may opt for coverage against spoilage due to delays.
• A business transporting heavy machinery might require specialized coverage for damages caused during loading and unloading.
• Exporters engaging in multi-modal transport (combining sea, rail, and road transport) can secure policies that cover the entire journey.

This adaptability ensures that businesses of all sizes and sectors can find a policy that aligns with their specific risks and operational requirements.

5. Compliance with Trade and Regulatory Requirements

Many trade agreements, contracts, and international shipping regulations require proof of insurance coverage for goods in transit.

By obtaining GIT, businesses not only fulfill these obligations but also position themselves as reliable partners in trade.

For Kenyan exporters working within the African Continental Free Trade Area (AfCFTA) or international markets, having transit insurance demonstrates professionalism and reduces potential disputes over liabilities in case of loss or damage.

6. Enhanced Access to Financing

Financial institutions and lenders often view insured shipments as lower-risk investments.

By having GIT in place, businesses can increase their chances of securing trade financing, loans, or credit facilities. 

For example:

• A small exporter with insured shipments may secure better terms from a bank for financing working capital.
• Importers with insurance coverage may negotiate favorable payment terms with international suppliers.

This financial flexibility is invaluable for businesses looking to scale operations or improve cash flow.

7. Improved Customer Confidence and Trust

Clients and partners want assurance that their goods will reach them in perfect condition.

Having Goods in Transit Insurance boosts customer confidence by guaranteeing that goods are protected throughout the journey. 

This reassurance fosters trust and strengthens relationships, leading to repeat business and long-term partnerships.

Step By Step Insurance: Your Trusted Agency 

At Step By Step Insurance Agency, we understand the unique challenges faced by Kenya’s importers and exporters. 

Our Goods in Transit Insurance solutions are designed to provide you with robust protection and the confidence to grow your business. 

Here’s why you should choose us:

1. Wide Range of Underwriters:

We work with multiple reputable insurance providers to offer you competitive rates and comprehensive policies tailored to your needs.

2. Expert Guidance:

Our team of experienced professionals will help you navigate the complexities of transit insurance, ensuring you get the right coverage.

3. Timely Claims Processing:

We prioritize efficiency, ensuring that claims are processed quickly and transparently, so you can recover from losses without delay.

4. Customizable Policies:

Whether you’re shipping agricultural produce, electronics, or heavy machinery, we can tailor policies to match the nature of your goods and trade routes.

5. Ongoing Support:

From policy selection to risk assessment and claims management, we are with you every step of the way.

Conclusion: Secure Your Goods-in-Transit, Secure Your Business

As Kenya’s trade landscape continues to evolve in 2025, the risks associated with cross-border transactions remain ever-present. 

Goods in Transit Insurance is not merely a safeguard; it is an enabler of resilience and growth for importers and exporters. 

By protecting your shipments against financial loss, ensuring business continuity, and instilling confidence in your operations, GIT allows you to focus on what truly matters—expanding your reach and achieving your business goals.

At Step By Step Insurance Agency, we are committed to empowering Kenya’s businesses to thrive in the global marketplace. Don’t let unforeseen events derail your trade ambitions.

Take the first step toward securing your future with our tailored Goods in Transit Insurance solutions.

Protect your goods and your business with Step By Step Insurance Agency. Contact us today to learn more about our Goods in Transit Insurance policies and get a free consultation.

Let us help you safeguard your success and navigate the waves of cross-border trade with confidence.

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