Kenya to block imports without local marine cargo insurance from 1 November, KRA says

The Kenya Revenue Authority (KRA) will block customs clearance of any consignment that is not covered by a marine cargo insurance policy from a locally licensed insurer from 1 November 2026, according to a public notice dated 22 October 2026.

The notice, signed by the Commissioner for Customs & Border Control, says KRA and the Insurance Regulatory Authority (IRA) will enforce mandatory Digital Marine Cargo Insurance from that date. Importers and clearing agents must make sure every incoming consignment into Kenya has a valid policy, issued exclusively by an IRA-licensed insurer.

The insurance certificate must be processed through the Digital MCI System and successfully transmitted to KRA's iCMS platform before a customs declaration is lodged. Consignments that do not meet the requirements will be blocked from clearance, and the notice urges stakeholders to ensure full compliance to prevent trade disruptions. It refers importers to a page on the IRA website about enforcing local marine cargo insurance for all importers.

The notice says it follows previous notices. The rule rests on Section 16A of the Marine Insurance Act, inserted by the Finance Act, 2017, which requires people with an insurable interest in marine cargo to insure it with a locally registered insurer, according to the law firm Clyde & Co. Section 20(4) of the Insurance Act makes it an offence to take out insurance from an unlicensed insurer.

The start date has moved more than once. The IRA and KRA first set 14 February 2025. In June 2025 the IRA's chief executive, Godfrey Kiptum, told journalists in Naivasha there had been a challenge with the system and that the IRA expected to roll it out in July, Business Daily reported on 9 June 2025.

Clyde & Co cites an IRA notice of 22 May 2026 that set 1 July 2026 as the date for digital enforcement. The Star reported on 3 July 2026 that the requirement had taken effect on 1 July and that goods could not be cleared without a digitally verified certificate from a local insurer.

The Kenyan news site The Kenya Times described how a policy is bought. Importers or clearing agents can apply through insurers' websites and mobile apps, the web portal of the Kenya International Freight and Warehousing Association (KIFWA), or the eCitizen platform. The applicant supplies the Import Declaration Form (IDF) number or retrieves the declaration details, and the insurer decides whether to accept the risk.

If it does, the insurer's eCitizen API checks the premium invoice against IRA-approved rates. Payment goes through the eCitizen payment API, with Pesaflow as the payment gateway. After payment, the certificate data and payment notices go to iCMS, the Association of Kenya Insurers (AKI) and the insurers, and the AKI generates the Digital Marine Cargo Insurance (DMCI) certificate and sends it to iCMS. KRA will not issue a DMCI certificate without confirmation of premium payment, The Kenya Times said.

The Star reported in July that the regulations effectively end the practice of many importers relying on foreign insurance arranged under Cost, Insurance and Freight (CIF) contracts. Agayo Ogambi, chief executive of the Shippers Council of Eastern Africa (SCEA), said importers "will have to review their terms of importation, taking cognisance that CIF is no longer applicable". The council advised importers to avoid paying for insurance both overseas and locally, and recommended the Cost and Freight (CFR) term, under which the overseas supplier pays for shipping and the Kenyan buyer buys cover from a local insurer.

The SCEA said importers buying goods from China, India, Europe and the United Arab Emirates accounted for the majority of premium outflows. Capital goods such as machinery and industrial equipment, along with motor vehicles and electronics, have historically recorded some of the highest levels of foreign insurance, often because foreign suppliers dictated CIF terms.

In July the SCEA also asked the Commissioner of Insurance to say how cargo already on the high seas under existing foreign policies will be treated at customs clearance.

Also in July, Tobias Alando, chief executive of the Kenya Association of Manufacturers (KAM), asked for local premiums to be competitive with global market rates and for clarity on how existing insurance contracts should be wound down. Peter Otieno, national chairman of the Car Importers Association of Kenya, objected to the rule. "Forcing importers to purchase an additional insurance policy locally amounts to duplicate coverage with no corresponding benefit to consumers or businesses," he said. KAM, the Kenya Private Sector Alliance (KEPSA) and the SCEA had earlier cautioned that compulsory local insurance could increase import costs and expose businesses to delays if digital systems malfunction.

In March 2025, seven private-sector bodies, including KIFWA, the SCEA and KEPSA, sent the IRA a memorandum asking it to suspend the directive until concerns were addressed, and called for clear exemption guidelines, detailed implementation procedures and broader stakeholder engagement, The Standard reported on 5 March 2025.