Kenya has mandated that all importers get digital maritime insurance for their goods from local insurers before customs clearance, effective February 14.
This development is part of Kenya’s plans to transform the way importers obtain cargo insurance, firmly bringing the nation’s marine economy into the digital era.
It is actually the end result of a process that started with the Finance Act of 2017, which first required local marine cargo insurance, even though some may see it as a bureaucratic roadblock. Kenya’s insurance industry would be strengthened by the new system’s simplified procedure, which should also make compliance simpler. Thankfully, importers have access to a wide range of internet outlets.
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Integration of M-PESA Super App
In addition to web portals and specialised platforms for insurance underwriters, the nation has incorporated the service within the well-known M-PESA Super App through the Coral Mini App.
The architecture of the system is highly advanced since it facilitates smooth communication between several parties, such as the Kenya Revenue Authority (KRA), the Insurance Regulatory Authority (IRA), and different insurance underwriters.
The Import Declaration Form (IDF), the foundation of every request for an insurance certificate, is the key to the procedure.
How to obtain the digital Marine Cargo Insurance Certificate
The following procedure is simple yet thorough for importers and clearing agents:
Access the IDF via any of the outlets that have been approved.
Fill out the Marine Cargo Insurance Certificate digital form.
Pay the premium fees.
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Send the certificate through the IRA’s online system.
The certificate is then instantly forwarded to KRA’s Integrated Customs Management System (ICMS), resulting in a seamless and paperless process from beginning to end.
To modernise Kenya’s import operations and guarantee adherence to regional insurance regulations, the decision to digitise this process was made strategically.
The nation is attempting to increase the capacity of its domestic insurance market while retaining control over maritime cargo insurance policies by requiring local insurance coverage.