KENYA · BUSINESS
Key Facts
- —What is happening Kenya’s tax agency, the Kenya Revenue Authority (KRA), will block imported consignments from customs clearance from Sunday 1 November 2026 unless they carry valid, digitally verified marine cargo insurance from a licensed Kenyan insurer.
- —Why it matters The rule turns a requirement in force since Wednesday 1 July into a hard customs stop, and it pushes insurance on imports into the hands of Kenyan insurers.
- —The numbers Kenya imports goods worth over Ksh2.5 trillion (about US$19.3 billion) a year, and the marine cargo insurance market is put at Ksh8 billion to Ksh15 billion (about US$62 million to US$116 million).
- —Who is who KRA runs customs and the iCMS clearance system, the Insurance Regulatory Authority (IRA) licenses insurers, and importers and clearing agents must now prove cover before filing a declaration.
- —What to watch Sunday 1 November is the enforcement date, ten days after the notice, and the open questions are exemptions, cargo already at sea and how fast the digital system issues certificates.
- —What it means for you US exporters selling to Kenyan buyers on terms that include insurance in the price may need new contract terms, and shipments without a valid certificate risk being held at the border.
Kenya will stop imports that lack digitally verified local cargo insurance from Sunday 1 November. Foreign sellers who include insurance in their price are the most exposed.
Kenya’s tax agency will block imports from Sunday 1 November 2026 unless they carry valid marine cargo insurance from a licensed insurer. The Kenya Revenue Authority (KRA) published its notice, “Enforcement of Marine Cargo Insurance”, on Thursday 22 October.
The insurance certificate must pass through the Digital Marine Cargo Insurance (MCI) System before the importer files a customs declaration. Importers and clearing agents carry the duty, and foreign sellers who price in insurance may need new contracts.
How the Cargo Insurance Rule Works
KRA says it will enforce mandatory Digital MCI “effective 1st November, 2026”, as Kenyans.co.ke and The Eastleigh Voice quote the notice. The KRA website lists the notice under 22 October 2026, signed by the Commissioner for Customs and Border Control.
Every consignment needs a valid MCI policy from an insurer licensed by the Insurance Regulatory Authority (IRA), the state insurance regulator. The certificate must reach KRA’s Integrated Customs Management System (iCMS) before the declaration is lodged.
The notice warns that “consignments failing to meet these requirements will be blocked from clearance”, Kenyans.co.ke and The Eastleigh Voice quote. Uzalendo News quotes it urging importers to “ensure full compliance ahead of the enforcement date”.
The notice says it follows earlier notices and points importers and agents to the IRA website for guidance. The newsroom could not open the IRA page, which showed a bot check, so IRA details here come from news reports.
Who Is Affected by the New Import Rule
The duty falls on importers and their clearing agents, the licensed firms that file customs declarations for cargo, says KRA. People Daily says importers without a valid certificate will see cargo blocked from clearance.
Foreign sellers are affected through the price terms of their contracts, says the Shippers Council of Eastern Africa. Council chief Agayo Ogambi said in July that CIF, where the seller pays insurance, “is no longer applicable”, The Star reports.
Under the CFR term, the overseas supplier pays transport only and the Kenyan buyer buys cover locally, the council says. Ogambi added that the change “will definitely affect existing long-term contracts”.
The council says importers from China, India, Europe and the United Arab Emirates account for most premium outflows. Capital goods, machinery, motor vehicles and electronics have historically carried the highest levels of foreign insurance, it says.
Kenyan insurers stand to gain from the change. The Star reports government estimates put the market at Ksh8 billion to Ksh15 billion (about US$62 million to US$116 million) a year.
Industry players estimate that more than 85% of those premiums went to foreign insurers, The Star reports. A government estimate puts imports above Ksh2.5 trillion (about US$19.3 billion) a year.
Importers are divided over the rule, The Star reports. Manufacturers want local premiums priced in line with global rates, while car importers call local cover duplicate.
How Kenya Reached Sunday 1 November
Law firm Clyde & Co says section 16A of the Marine Insurance Act, added in 2017, requires local insurers for cargo. Section 20(4) of the Insurance Act makes buying cover from an unlicensed insurer an offence.
Enforcement stayed weak, although KRA and the IRA set 14 February 2025 for clearing only locally insured cargo, Business Daily reported. On 23 April 2026 it said marine and transit premiums grew just 2.9% in 2025, the slowest in four years.
Business Daily reported on 6 May 2026 that mobile operator Safaricom had built a system to tighten enforcement. Clyde & Co says the IRA issued a notice on Friday 22 May, and digital enforcement took effect on Wednesday 1 July.
The Eastleigh Voice reported on 30 June that the Kenya International Freight and Warehousing Association (KIFWA) launched a digital platform with insurers. It issues certificates and takes payments, and links to eCitizen, iCMS and M-Pesa, the mobile money service.
The new notice sets 1 November as the date when KRA will block non-compliant cargo. None of the reports seen explains how this differs from the 1 July start, which is listed under what is not known.
What It Means for US Readers
No outlet seen names the United States, and the notice applies to every consignment entering Kenya. US exporters selling on CIF or CIP terms, where the seller pays insurance, should ask buyers about local certificates.
The Shippers Council recommends CFR, under which the Kenyan buyer arranges local cover. Exporters who keep quoting CIF risk paying for insurance twice, the council warns.
Freight forwarders and US firms with Kenyan subsidiaries have ten days from the notice to check contracts and certificates. Kenyan insurers on the platform stand to win premium income, though none has published a forecast.
What Is Not Known
The newsroom has not seen the full text of the notice, so it is unclear whether any exemptions apply. Reports do not say what happens to cargo already at sea, which the Shippers Council raised in July.
No report gives premium rates or fines for non-compliance. Insurers set rates, and the Shippers Council has asked regulators to keep premiums competitive.
The digital rule began on 1 July, and no report explains why the block starts on 1 November. Business Daily, Nation and Capital FM were not seen carrying it, so this story rests on KRA and four Kenyan outlets.
Frequently Asked Questions
What is Kenya’s new marine cargo insurance rule?
From Sunday 1 November 2026, imported consignments need a valid marine cargo insurance policy from an IRA-licensed insurer. The certificate must be processed through the Digital MCI System and sent to the iCMS customs system before a declaration is lodged.
What happens to cargo without insurance?
KRA says consignments failing the requirements will be blocked from clearance. The notice gives no fine, and the reports seen do not mention one.
Who must comply?
Importers and clearing agents must ensure the cover and certificate are in place. Foreign sellers are affected through the contract terms they use with Kenyan buyers.
Does the rule affect US exporters?
The notice applies to all imports into Kenya, and no source names the United States. Sellers on CIF or CIP terms may need to switch to terms such as CFR so the Kenyan buyer arranges local cover.
Is this a new rule?
No, the requirement has existed since 2017 and digital enforcement began on Wednesday 1 July 2026. The new notice sets 1 November as the date when KRA will block non-compliant cargo.
Where can importers get guidance?
The notice points importers and clearing agents to the website of the Insurance Regulatory Authority. Insurers on the KIFWA digital platform also issue certificates, according to The Eastleigh Voice.
Sources: KRA public notice, Enforcement of Marine Cargo Insurance (22 October 2026); Kenyans.co.ke; The Eastleigh Voice; People Daily; Uzalendo News; The Star, 3 July 2026; The Star, 2 July 2026; The Eastleigh Voice, 30 June 2026; Clyde & Co; Business Daily, 7 January 2025; Business Daily, 23 April 2026; Business Daily, 6 May 2026; The Elephant (all accessed 22 October 2026). Conversions use KES 129.87 per US$1 (open.er-api.com, 22 October 2026, 00:02 UTC); the IRA notice page could not be opened.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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