A new directive mandating importers to purchase Marine Cargo Insurance (MCI) from local underwriters took effect on July 1 in Kenya, aiming to boost the domestic insurance industry and retain premiums. The Insurance Regulatory Authority (IRA) requires all imported goods to be covered by locally purchased MCI, with digital certificates integrated into the Kenya Revenue Authority’s (KRA) Integrated Customs Management System (iCMS) for seamless customs clearance.

• This directive is expected to generate Sh70 billion in annual premiums for local insurers.
• The IRA and KRA are urged by the Shippers Council of East Africa (SCEA) to implement the policy innovatively, learning from a similar failed attempt in 2017.
• The new policy shifts import insurance from potentially foreign underwriters to local providers, which critics worry could impact contracts based on CIF and FOB terms, potentially leading to higher costs and legal complexities.