Marine insurance is the insurance taken to cover cargo (goods), hull (Vessels such as ships), as well as other incidental losses/liability when transporting goods, in international trade from country to county. Marine insurance applies to goods transported by sea and air and also extends to road and/or rail to final destination.
The Insurance Act states that "No insurer, broker, agent or other person shall directly or indirectly place any Kenya business other than re-insurance business with an insurer not registered in Kenya without the prior approval, whether individually or generally, in writing of the Commissioner"
Importers have in the past insured their goods in the country of origin, through their suppliers.
During the budget speech of 2016, The Treasury Cabinet Secretary announced plans to enforce this law
starting 1st January 2017. To achieve this, customs department will not clear imported goods unless
marine insurance is placed with an insurance company registered in Kenya.
As of January 1st, 2017 the Kenya Revenue Authorty (KRA) customs department will not clear goods from without proof of marine
insurance from a Kenyan insurance company. Importers who ship on CIF need to renegotiate shipment
terms that exclude insurance, to avoid double-insurance.