The New Digital Marine Cargo Mandate: How to Navigate Kenya’s New Shipping Insurance Rules
If you are an importer, clearing agent, or logistics provider in Kenya, the way you secure your goods has permanently changed. The rollout of the Digital Marine Cargo Insurance (DMCI) platform has digitized maritime trade coverage, enforcing a law that many businesses previously ignored. Here is everything you need to know to prevent your cargo from getting stuck at the Port of Mombasa.
The Legal Mandate: Section 20 of the Insurance Act
While Section 20 of the Insurance Act has long stated that all Kenyan imports must be insured locally, enforcement was historically weak. Importers routinely bought Cost, Insurance, and Freight (CIF) packages from foreign sellers, meaning the insurance money left Kenya.
The Update: The government has fully closed this loophole. You can no longer clear your goods through customs without a locally issued Marine Cargo Insurance (MCI) certificate.
How the New DMCI System Works
To eliminate manual paperwork delays, the Kenya International Freight and Warehousing Association (KIFWA) and local underwriters launched a fully automated digital portal.
The Integration: The DMCI platform is directly linked to the government’s eCitizen gateway and the Kenya Revenue Authority’s (KRA) Integrated Customs Management System (ICMS).
The Process: When you buy marine insurance online through a licensed Kenyan broker or underwriter, the digital system automatically generates a unique certificate. This certificate instantly syncs with KRA's system, allowing your clearing agent to lodge the import declaration without delay.
Financial Benefits for Local Importers
While some view this as an extra regulatory hurdle, it offers massive financial advantages over foreign-sourced insurance:
Local Currency Savings: You pay your premiums in Kenya Shillings (KSh), protecting your business from volatile US Dollar (USD) exchange rates.
Faster Claims Adjusting: If your cargo is damaged or lost at sea, dealing with a local insurer in Nairobi or Mombasa is significantly faster than trying to chase a claims settlement from an underwriter based in Europe or Asia.
What Types of Marine Cover Can You Buy?
Importers must choose the correct level of cover depending on their risk tolerance:
Institute Cargo Clauses (A): The most comprehensive, "All Risks" cover. It protects against theft, fire, sinking, and damage from rough sea weather.
Institute Cargo Clauses (B) & (C): More restrictive, lower-premium options. These typically only cover major catastrophic events, such as the vessel catching fire, running aground, or sinking.
Compliance Checklist for Smooth Port Clearing
To ensure your cargo flows seamlessly through Mombasa or the Inland Container Depots (ICDs):
Instruct your overseas supplier to quote on a Free on Board (FOB) or Cost and Freight (CFR) basis, excluding foreign insurance.
Log onto a local insurer's portal or contact your insurance broker to input your Proforma Invoice and shipping details.
Pay the premium via mobile money or bank transfer to instantly generate your local Marine Insurance Certificate.
Ensure your clearing agent links the certificate number to the KRA ICMS system before the vessel arrives.
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