• By Raymond Momanyi

Marine Insurance in Kenya | Cargo, GIT and Hull Cover

Marine Insurance in Kenya: A Complete Guide for Importers, Exporters and Businesses

Learn how marine insurance in Kenya protects imports, exports, local cargo and vessels. Understand Digital Marine Cargo Insurance Certificates, cargo cover options, claims, documents and compliance requirements.

Why Marine Insurance Matters in Kenya

Goods can travel thousands of kilometres before reaching the buyer.

A shipment may move from a supplier’s warehouse by truck, cross an international port, travel by sea or air, pass through customs and continue by road to its final destination in Kenya. At every stage, it may be exposed to theft, fire, collision, rough handling, water damage, vessel accidents and other unexpected events.

Marine insurance in Kenya protects businesses against certain physical losses or damage affecting cargo during transportation.

Despite its name, marine cargo insurance is not restricted to goods transported by sea. Depending on the policy, it can cover cargo moving by:

• Sea
• Air
• Road
• Rail
• Inland waterways
• A combination of transport methods

Kenya’s marine-insurance framework also requires persons with an insurable interest in imported marine cargo to place that insurance with an insurer registered under Kenyan insurance law, except where a lawful exception applies. The Insurance Regulatory Authority introduced an official Digital Marine Cargo Insurance Certificate process in June 2026, integrating import-cargo insurance with KRA’s Integrated Customs Management System, eCitizen, licensed insurers and the IRA. (Kenya Law)

What Is Marine Insurance?

Marine insurance is a broad category of insurance covering cargo, vessels and certain liabilities arising from transportation or maritime operations.

The three principal classes discussed in the Kenyan market are:

1. Marine cargo insurance
2. Goods in Transit insurance
3. Marine hull insurance

These policies protect different interests.

Marine cargo insurance protects the goods being transported. Goods in Transit insurance is commonly used for local movement of goods. Marine hull insurance protects the physical vessel and may include associated liabilities.

A business should choose the policy according to what it owns, what it is transporting, how the goods move and where the journey begins and ends.

Is Marine Cargo Insurance Compulsory for Imports into Kenya?

Section 16A of Kenya’s Marine Insurance Act provides that a person with an insurable interest in marine cargo must place the marine cargo insurance with an insurer registered under the Insurance Act, unless prior written exemption has been granted under the applicable framework. (Kenya Law)

This requirement supports local underwriting of imported cargo rather than allowing the insurance to be placed automatically with a foreign insurer by the overseas supplier.

In June 2026, the Insurance Regulatory Authority published the official procedure for acquiring and issuing a Digital Marine Cargo Insurance Certificate, commonly abbreviated as DMIC. The procedure applies to imported cargo consignments and connects the insurance process with KRA–ICMS, licensed insurers, eCitizen, Pesaflow and the IRA. (Insurance Regulatory Authority)

Importers should therefore arrange marine cargo insurance early in the import process rather than waiting until the cargo reaches the port or border.

What Is a Digital Marine Cargo Insurance Certificate?

A Digital Marine Cargo Insurance Certificate is electronic proof that an imported cargo consignment has been insured through a licensed local insurer.

The certificate is linked to the relevant import information and verified electronically through the connected government and insurance systems.

The digital process is intended to:

• Confirm that imported cargo has local marine insurance
• Link insurance to the relevant import declaration
• Reduce fraudulent or unverifiable certificates
• Improve communication between insurers, IRA and KRA
• Support faster customs verification
• Create a traceable record of the insured consignment

The IRA states that the digital process applies to imported cargo and is implemented through the KRA Integrated Customs Management System, licensed insurers, the eCitizen platform, Pesaflow and the regulator. (Insurance Regulatory Authority)

How the Digital Marine Insurance Process Works

The precise screens and operational steps may change as the digital system develops, but the process generally follows this structure.

Step 1: Begin the import declaration process

The importer appoints a licensed customs clearing agent and provides the necessary import documents.

KRA states that importers use licensed clearing agents to process declarations electronically. The importer or agent must capture the mandatory consignment details in the customs system. (Kenya Revenue Authority)

Step 2: Obtain an active Import Declaration Form

The Import Declaration Form identifies the consignment and contains information needed for customs and marine-insurance processing.

The importer usually needs the supplier’s pro forma invoice before the clearing agent lodges the IDF. (Kenya Revenue Authority)

Step 3: Request marine cargo insurance

The importer provides the active IDF and supporting shipment information to an insurance intermediary or licensed insurer.

The quotation is based on factors such as:

• Type of goods
• Cargo value
• Freight costs
• Mode of transport
• Country of origin
• Destination
• Packaging
• Transit route
• Required insurance conditions
• Claims history

Step 4: Select the insurer and pay the premium

The importer reviews the available quotation and chooses suitable cover from a locally licensed insurer.

Payment is made through the authorised payment process.

Step 5: Digital certificate issuance

After the required information and payment have been validated, a Digital Marine Cargo Insurance Certificate is generated and communicated through the integrated system.

Step 6: Customs verification

The certificate information becomes available for customs-related verification through the connected digital process.

The certificate should match the consignment details. Incorrect information relating to the importer, IDF, cargo description, value or mode of transport can cause delays.

What Documents Are Needed for Marine Cargo Insurance?

The insurer or intermediary may request:

• Import Declaration Form
• Commercial invoice
• Pro forma invoice
• Packing list
• Bill of Lading for sea cargo
• Air Waybill for air cargo
• Freight invoice
• Certificate of origin
• Purchase order or supply contract
• KRA PIN
• Import permits or licences
• Certificate of Conformity, where applicable
• Cargo description
• Packaging information
• Voyage details
• Previous claims history
• Details of the clearing agent

KRA lists commercial invoices, Bills of Lading or Air Waybills, certificates of origin, freight invoices, permits, KRA PINs, contracts and packing lists among the documents commonly needed for import clearance. (Kenya Revenue Authority)

The insurance company may ask for additional information where the cargo is fragile, hazardous, perishable, high-value or technically specialised.

What Does Marine Cargo Insurance Cover?

Marine cargo insurance protects goods against covered physical loss or damage during transit.

Depending on the policy conditions selected, cover may include:

• Vessel collision
• Vessel sinking
• Fire
• Explosion
• Overturning of a carrying vehicle
• Derailment
• Accidental impact
• Water damage
• Theft
• Pilferage
• Rough handling
• Loading and unloading damage
• General average contributions
• Jettison
• Damage caused by specified natural events
• Non-delivery of an insured package
• Temporary storage during the ordinary course of transit

Cover is determined by the policy wording and the insurance clauses attached to the certificate.

Not every marine policy provides identical protection.

Understanding Institute Cargo Clauses

Marine cargo policies often use internationally recognised Institute Cargo Clauses.

The most common are:

Institute Cargo Clauses A

This is generally the broadest of the standard cargo clauses.

It covers accidental physical loss or damage unless the cause is specifically excluded.

It is often described as “all risks,” but that does not mean every circumstance is insured.

Institute Cargo Clauses B

This provides intermediate protection against specified risks.

It is broader than Clauses C but narrower than Clauses A.

Institute Cargo Clauses C

This is the most limited of the three main options.

It mainly covers named major events such as fire, explosion, vessel grounding, sinking, collision and certain transport accidents.

An importer should not compare premiums without confirming whether the quotation is based on Clauses A, B or C.

A very cheap quotation may provide significantly narrower cover.

What Does Warehouse-to-Warehouse Cover Mean?

A warehouse-to-warehouse clause can extend marine cargo protection beyond the ocean journey.

The cover may begin when the goods leave the supplier’s warehouse for the insured transit and continue during the ordinary course of transportation until they reach the agreed final warehouse or destination.

This can include different transport stages, such as:

• Supplier’s warehouse to port
• Road transport to the export terminal
• Sea or air journey
• Unloading at the destination port
• Customs storage during normal transit
• Inland road or rail delivery
• Final delivery to the buyer’s warehouse

Warehouse-to-warehouse cover remains subject to time limits, policy conditions and termination events.

It does not mean that goods remain insured indefinitely after reaching their destination.

Marine Cargo Insurance for Imports

Import cargo insurance may be arranged for goods such as:

• Motor vehicles
• Machinery
• Electronics
• Medical equipment
• Construction materials
• Spare parts
• Clothing
• Furniture
• Food products
• Pharmaceuticals
• Industrial raw materials
• Agricultural inputs
• Solar equipment
• Telecommunications equipment
• Household goods

The importer should arrange cover based on the correct cargo value and transport route.

Where goods are shipped in several consignments, each shipment may require its own certificate unless the importer has an approved annual or open marine arrangement.

Marine Insurance for Exports from Kenya

Exporters can also insure goods being shipped from Kenya to overseas buyers.

Export cargo insurance may protect:

• Coffee
• Tea
• Flowers
• Fresh produce
• Manufactured products
• Textiles
• Machinery
• Processed food
• Handicrafts
• Minerals
• Other commercial exports

The sales contract should state which party is responsible for arranging insurance.

International trading terms, commonly known as Incoterms, can influence whether the seller or buyer must arrange transport and insurance.

However, an importer or exporter should not rely only on the Incoterm label. The sales contract, insurance clause and shipping responsibilities should be reviewed together.

Single-Transit Marine Cargo Insurance

Single-transit insurance covers one specified shipment.

It may suit businesses that:

• Import occasionally
• Export only a few consignments
• Are making a one-time machinery purchase
• Are relocating equipment
• Do not have regular monthly shipments

The certificate identifies the cargo, route, value and voyage covered.

Once that transit ends, the insurance also ends according to its terms.

Marine Open Cover

A marine open cover is designed for businesses with frequent shipments.

Instead of arranging a completely new policy for every consignment, the business agrees on annual terms with the insurer and declares each shipment under the arrangement.

An open cover may offer:

• Consistent agreed rates
• Faster certificate issuance
• Reduced administrative work
• Automatic protection for qualifying shipments
• Easier management of multiple consignments
• Consolidated premium reporting

The importer or exporter must still declare shipments accurately and within the required period.

Failure to declare cargo can create an uninsured loss.

How Is the Marine Cargo Sum Insured Calculated?

The insured value is not always limited to the supplier’s invoice price.

Depending on the policy and trading terms, the value may include:

• Cost of the goods
• Freight
• Insurance
• Customs-related costs
• Incidental expenses
• An agreed percentage for anticipated profit

A common basis may be the cost, insurance and freight value plus an agreed uplift, but the exact calculation must be confirmed in the quotation.

Underinsurance can reduce a claim payment.

Overstating the value does not automatically entitle the policyholder to make a profit from a loss. Insurance is intended to compensate an insured financial loss according to the policy terms.

Factors That Determine Marine Cargo Premiums

There is no universal marine-insurance rate for all imports.

The insurer may consider:

• Nature of the goods
• Total cargo value
• Country of origin
• Destination
• Mode of transport
• Shipping route
• Packaging quality
• Containerisation
• Type and age of vessel
• Transhipment points
• Storage arrangements
• Claims history
• Cargo theft exposure
• Required cargo clauses
• War and strike extensions
• Shipment frequency
• Whether the policy is single transit or annual open cover

Fragile electronics, frozen foods, pharmaceuticals and heavy machinery do not present the same risk.

The quotation should describe the cargo accurately.

Major Marine Cargo Exclusions

Marine cargo policies contain exclusions.

Common exclusions may include:

• Wilful misconduct by the insured
• Ordinary leakage
• Ordinary loss in weight or volume
• Normal wear and tear
• Inadequate packaging
• Inherent vice
• Delay
• Insolvency of carriers in certain circumstances
• Unseaworthiness known to the insured
• Nuclear risks
• War, unless separately covered
• Strikes, riots or civil commotion, unless extended
• Rejection by customs
• Market loss
• Currency fluctuation
• Loss of profit not specifically insured
• Temperature variation where specialised cover was not arranged

“Inherent vice” refers to damage caused by the natural characteristics of the goods rather than an external accident.

For example, produce may deteriorate naturally or improperly dried goods may develop mould without an external insured event.

Does Marine Insurance Cover War and Strikes?

War, strikes, riots and civil commotion may require separate extensions.

These risks may be excluded from the ordinary cargo clauses and added through specific war or strikes clauses.

Businesses shipping through high-risk regions should confirm:

• Whether war cover is included
• Whether the voyage passes through a restricted area
• Whether additional premiums apply
• Whether the insurer can cancel or change the war terms
• Whether strikes and civil commotion are covered
• Whether terrorism is included

A route that was considered ordinary when the quotation was issued may become higher-risk during the journey.

What Is General Average?

General average is a long-established maritime principle.

It may apply where extraordinary expenditure or sacrifice is made intentionally to protect the vessel and the remaining cargo from a common danger.

For example, cargo may be deliberately removed or emergency expenses incurred to save the voyage.

The shipowner may require cargo owners to contribute proportionately before the goods are released.

Marine cargo insurance can cover eligible general-average contributions and provide the required guarantee, subject to the policy terms.

Without insurance, an importer may have to provide a substantial cash deposit before receiving undamaged cargo.

What Is Goods in Transit Insurance?

Goods in Transit insurance, commonly known as GIT, protects cargo transported mainly within Kenya or the agreed territorial area.

It may cover goods moving by:

• Road
• Rail
• Inland waterways
• Courier
• Commercial delivery vehicles

GIT insurance may protect against risks such as:

• Fire
• Theft following forcible entry
• Collision
• Overturning
• Accidental damage
• Loading or unloading risks, where included

The exact scope depends on the policy.

Who Needs Goods in Transit Insurance?

GIT insurance may be relevant to:

• Transporters
• Logistics companies
• Couriers
• Distributors
• Wholesalers
• Retailers
• Manufacturers
• Furniture movers
• Pharmaceutical distributors
• Agricultural suppliers
• Supermarkets
• E-commerce businesses
• Construction suppliers

The owner of the goods and the transporter may have different insurance interests.

A transporter’s liability policy may cover only the transporter’s legal liability, while a cargo-owner’s policy may protect the full value of the goods.

The contract of carriage should clarify which party is responsible for insurance.

Goods in Transit Versus Marine Cargo Insurance

The two covers overlap but are not identical.

Marine Cargo Insurance

Marine cargo insurance is commonly used for international trade and multimodal transportation. It can extend from the overseas supplier’s warehouse to the importer’s final destination.

Goods in Transit Insurance

GIT is generally used for local or regional movement of goods by road, rail or inland transport.

A shipment may require both international marine cargo insurance and continuing domestic transit protection, depending on where the marine policy terminates.

What Is Marine Hull Insurance?

Marine hull insurance protects the vessel itself.

It may be arranged for:

• Commercial boats
• Passenger vessels
• Ferries
• Fishing vessels
• Cargo vessels
• Private boats
• Yachts
• Workboats
• Barges
• Marine service vessels

Depending on the selected policy, marine hull cover may include:

• Accidental physical damage
• Fire
• Collision
• Sinking
• Stranding
• Theft
• Salvage charges
• Sue-and-labour expenses
• Collision liabilities
• Specified machinery damage

The vessel’s value, age, construction, operating area and use will affect the quotation.

Marine Hull Insurance Requirements

The insurer may request:

• Vessel registration documents
• Ownership documents
• Marine survey report
• Vessel valuation
• Construction details
• Year of manufacture
• Operating area
• Purpose of use
• Crew qualifications
• Safety equipment details
• Maintenance records
• Previous claims
• Passenger or cargo capacity
• Maritime licences

An older or technically specialised vessel may require a detailed survey before the insurer accepts the risk.

Freight Forwarders’ and Transporters’ Liability

A logistics company may need more than cargo insurance.

Freight forwarders, warehouse operators and transporters may face legal claims arising from:

• Loss of customers’ goods
• Delivery errors
• Documentation mistakes
• Negligent handling
• Storage damage
• Customs-processing errors
• Misdelivery
• Delay-related allegations

A freight forwarder’s liability or carrier’s liability policy protects the company’s legal liability rather than automatically insuring the full cargo value.

The difference should be made clear to clients.

Stock Throughput Insurance

Businesses with continuous movement of goods may consider stock-throughput insurance.

This can combine protection for:

• International transit
• Domestic transit
• Temporary storage
• Warehousing
• Distribution movement

A stock-throughput arrangement can reduce gaps between separate marine, property and Goods in Transit policies.

It is normally suitable for larger businesses with regular imports, exports and warehousing operations.

How to Make a Marine Cargo Claim

When cargo is lost or damaged, the insured should act immediately.

1. Notify the insurer

Report the loss as soon as possible.

2. Protect the cargo

Take reasonable measures to prevent further damage.

3. Notify the carrier

Send written notice to the shipping line, airline, transporter, port operator or warehouse where appropriate.

4. Arrange a survey

The insurer may appoint a marine surveyor to inspect the cargo.

5. Preserve evidence

Keep damaged goods, packaging, seals, containers and photographs.

6. Do not sign a clean delivery receipt

Where damage is visible, record it on the delivery documents.

7. Submit supporting documents

The insurer may request:

• Claim form
• Marine insurance certificate
• Commercial invoice
• Packing list
• Bill of Lading or Air Waybill
• Delivery note
• Survey report
• Customs documents
• Photographs
• Repair or replacement quotations
• Correspondence with the carrier
• Police report for theft
• Claim against the transporter

8. Protect recovery rights

The insurer may pursue the responsible carrier after settling a valid claim.

The policyholder should not waive rights against a carrier without the insurer’s approval.

Common Reasons Marine Cargo Claims Become Difficult

Marine claims can be delayed or disputed where:

• The cargo was insured after damage had already occurred
• The goods were poorly packaged
• The cargo description was inaccurate
• The insured value was understated
• The route differed from the declared route
• The loss was reported late
• The carrier was not notified
• Damaged goods were disposed of before inspection
• The delivery receipt was signed without noting visible damage
• The loss resulted from delay or inherent vice
• The required extension was not purchased
• The shipment was not declared under an open cover

Accurate documentation and prompt notification are critical.

How to Compare Marine Insurance Quotations

Do not compare the premium alone.

Review:

Cargo clauses

Confirm whether the quotation is based on Institute Cargo Clauses A, B or C.

Sum insured

Ensure every insurer is quoting using the same value.

Deductible

Check the portion of each claim payable by the insured.

Voyage

Confirm the origin, destination and transport stages.

Warehouse-to-warehouse cover

Establish exactly where the insurance begins and terminates.

Theft and non-delivery

Confirm whether these risks are covered.

War and strikes

Check whether the extensions have been added.

Packaging requirements

Understand any warranties relating to containers, crates, refrigeration or sealed vehicles.

Claims support

Ask how surveys, emergency notifications and document submissions are handled.

Open-cover terms

For regular importers, compare declaration procedures, annual limits and reporting requirements.

How Imana Helps Businesses Compare Marine Insurance

Imana Insurance Agency Kenya Ltd helps importers, exporters, manufacturers, traders and logistics companies compare marine insurance quotations from suitable licensed insurers.

The comparison may cover:

• Premium rate
• Institute Cargo Clauses
• Warehouse-to-warehouse protection
• Insured value
• Deductible
• Theft and non-delivery
• War and strikes extensions
• Mode of transport
• Open-cover terms
• Digital certificate processing
• Claims procedures
• Insurer documentation requirements

Imana can assist with:

• Import marine cargo insurance
• Export marine cargo insurance
• Digital Marine Cargo Insurance Certificates
• Single-shipment cover
• Annual marine open cover
• Goods in Transit insurance
• Marine hull insurance
• Freight-forwarder liability
• Customs bonds
• Commercial motor and fleet insurance
• Warehouse insurance
• Fire and business-interruption insurance

Marine Insurance in Westlands, Nairobi and Across Kenya

Imana Insurance Agency Kenya Ltd serves clients from:

4th Floor, Krishna Centre
Woodvale Grove, Westlands
Nairobi, Kenya

The agency assists importers and businesses operating around:

• Westlands
• Nairobi CBD
• Industrial Area
• Mombasa Road
• Embakasi
• Athi River
• JKIA
• Inland Container Depot
• Mombasa
• Naivasha
• Kisumu
• Other logistics and commercial centres across Kenya

Clients can submit import and shipment documents electronically for quotation and certificate processing.

Request a Marine Insurance Quotation

Arrange marine cargo insurance before the goods begin their journey or before an uninsured exposure develops.

Provide:

• Import Declaration Form
• Commercial invoice
• Packing list
• Bill of Lading or Air Waybill
• Cargo description
• Origin and destination
• Freight details
• Required cover

Call or WhatsApp Imana Insurance Agency Kenya Ltd: +254 796 209 402 or Website: https://imana.co.ke

Your cargo represents money in motion. Protect it from the supplier’s warehouse to its final destination.

Frequently Asked Questions

Is marine cargo insurance compulsory in Kenya?

Persons with an insurable interest in imported marine cargo are required to place the insurance with an insurer registered under Kenya’s Insurance Act, unless an applicable exemption has been granted. (Kenya Law)

What is a Digital Marine Cargo Insurance Certificate?

It is electronic proof of locally placed marine cargo insurance issued through the integrated process involving licensed insurers, IRA, eCitizen, Pesaflow and KRA–ICMS. (Insurance Regulatory Authority)

Does marine insurance cover air freight?

Yes. Marine cargo insurance can cover cargo transported by air, subject to the policy’s route and terms.

Does marine insurance cover road transport?

It can cover inland road transit as part of a warehouse-to-warehouse journey. Separate Goods in Transit insurance may also be arranged for local transport.

What is the difference between Marine Cargo Clauses A and C?

Clauses A generally provide broader accidental-damage protection, subject to exclusions. Clauses C cover a narrower list of specified major risks.

Can I insure one shipment only?

Yes. A single-transit policy can be arranged for one consignment.

What is an open marine cover?

It is an annual arrangement under which regular shipments are declared under agreed insurance terms.

Are goods covered while in a warehouse?

Temporary storage during the ordinary course of insured transit may be covered. Long-term warehousing usually requires separate property or stock insurance.

What is Goods in Transit insurance?

It protects goods transported locally or within an agreed territory by road, rail or other inland transport.

What is marine hull insurance?

It protects physical vessels such as boats and ships against specified loss or damage and may include certain liabilities.

Can Imana help generate a digital marine certificate?

Imana can assist importers with marine quotations and certificate processing through suitable licensed insurance providers, subject to the required import documents and digital-system procedures.

Marine insurance premiums, coverage, digital certificate issuance, deductibles, exclusions and claims remain subject to the selected insurer’s underwriting requirements, policy schedule, Institute Cargo Clauses and the current regulatory procedure. Importers should confirm current customs and insurance requirements before shipment.