What happened

The Kenya Revenue Authority (KRA) announced that, effective 1 November, it will refuse to clear any imported goods that are not accompanied by a valid digital marine cargo insurance certificate. The move targets all shipments entering Kenya through the main ports of Mombasa and Lamu, as well as inland border points. KRA officials said the decision is part of a broader effort to curb fraud and ensure that cargo owners are protected against loss or damage during transit. Importers who fail to present the digital insurance proof will face detention of their goods and possible penalties. The directive was published in The Eastleigh Voice and is expected to be enforced immediately after the start date.

Context and background

KRA has been modernising its customs clearance system for several years, introducing electronic single window (eSW) platforms that require digital documentation for every import transaction. Marine cargo insurance, traditionally issued on paper, has increasingly moved to online issuance to match the digital customs environment. The authority noted that a growing number of fraudulent or expired insurance documents have been discovered during routine inspections, leading to financial losses for both importers and insurers.

Marine cargo insurance covers risks such as theft, damage, or loss of goods while they are in transit by sea. Without this cover, cargo owners bear the full brunt of any incident, which can be financially crippling for small and medium‑size enterprises (SMEs). The requirement for a digital certificate aligns with Kenya’s Vision 2030 goal of digitising trade processes and reducing paperwork bottlenecks at the ports.

Historically, KRA allowed paper certificates as long as they were verified manually, a process that could take several days. The shift to a mandatory digital format is also intended to streamline verification, as the digital certificate can be cross‑checked instantly against the insurer’s database. The Eastleigh Voice, a local newspaper serving Nairobi’s Eastleigh district – a hub for import‑export businesses – reported the upcoming change after KRA’s internal memo was leaked to the press.

Compared with what is normal

Under the previous regime, importers could submit either a paper or digital insurance document, and customs officers would confirm authenticity through phone calls or fax. The new rule eliminates the paper option entirely, making digital proof the only acceptable form. This represents a shift from a mixed‑mode verification system to a fully electronic one.

• Verification time: Paper certificates often required 2‑3 days for manual checks; digital certificates can be validated in minutes.
• Risk of fraud: Paper documents were easier to forge; digital certificates are linked to insurer databases, reducing falsification.
• Compliance cost: Importers previously needed to keep physical copies; now they must ensure electronic access, which may involve minimal software upgrades.
• Customs clearance speed: The digital requirement is expected to cut overall clearance time by up to 30 percent, according to KRA’s internal estimates.

Why it matters

For Kenyan SMEs that rely on imported raw materials or finished goods, the new rule has immediate practical implications. Without a valid digital marine cargo insurance certificate, shipments will be held at the port, leading to storage charges, delayed production schedules, and potential loss of customers. The policy also protects importers from uninsured losses, which can be especially damaging for businesses operating on thin margins. Moreover, the enforcement aligns Kenya with international best practices, potentially improving the country’s trade credibility and lowering insurance premiums in the long run.

Practical steps

• Contact your marine insurer now to confirm that they issue digital certificates and request the necessary documentation before your next shipment.
• Update your import documentation workflow to include a step for uploading the digital insurance proof onto KRA’s eSW portal before the cargo arrives.
• Train your customs clearance team on how to verify digital certificates and what error messages to watch for in the system.
• Maintain a backup copy of the digital certificate on a secure cloud service to avoid loss of access due to technical glitches.

Beavoren Ventures offers a Tax Planning & Compliance service that can help import‑focused SMEs navigate the new digital insurance requirement, ensure proper documentation, and avoid costly clearance delays.

Need help with compliance? Email info@beavorenventures.co.ke or call +254 716 296 857.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.