What happened

The Kenya Revenue Authority (KRA) has issued a directive that, from November 2024, any import consignment arriving at Kenyan ports without a valid digital marine insurance certificate will be blocked from clearance. The move aims to replace paper‑based insurance documents with electronic certificates that can be verified instantly through the KRA’s online portal. Importers, freight forwarders and insurers are being given a short window to adapt their processes before the enforcement date. Failure to present a compliant digital certificate will result in cargo being held at the berth, incurring storage charges and possible penalties.

Context and background

KRA’s decision follows a broader government push to digitise trade procedures, a trend that began with the introduction of the Integrated Customs Management System (ICMS) in 2020. The agency has repeatedly warned that paper‑based marine insurance documents are prone to fraud, delays and mismatches with cargo manifests. By mandating digital certificates, KRA hopes to align Kenya with international best practices endorsed by the International Maritime Organization (IMO) and the World Bank’s Doing Business reforms.

Marine insurance, which covers loss or damage to goods during sea transport, has traditionally been evidenced by a printed policy issued by insurers and physically attached to the Bill of Lading. Over the past two years, several Kenyan insurers have piloted electronic insurance platforms, but uptake remained limited due to lack of regulatory clarity. The November deadline gives stakeholders roughly three months to register on the KRA’s Digital Marine Insurance Registry, upload policy data, and ensure that customs officers can access the information in real time.

Key players in this transition include the Insurance Regulatory Authority (IRA), which has issued guidelines on the format and security standards for digital certificates, and the Kenya Ports Authority (KPA), responsible for enforcing the clearance rule at Mombasa and other entry points. Earlier this year, KRA conducted a series of stakeholder workshops in Nairobi and Mombasa, highlighting the technical steps required and offering a test environment for firms to trial the system before it goes live.

Compared with what is normal

Historically, Kenyan customs has accepted paper marine insurance documents without requiring electronic verification. The average clearance time for shipments with complete paperwork has been around 48‑72 hours after arrival. Under the new rule, the baseline for compliance will shift to an electronic check that can be completed within minutes, potentially reducing overall clearance time for compliant cargo.

• Paper certificates: verification relied on manual inspection, often causing delays of up to three days.
• Digital certificates: instant validation via the KRA portal, expected to cut verification time to under an hour.
• Typical compliance rate for new digital initiatives in Kenya has hovered around 60% in the first six months, suggesting a learning curve for smaller firms.

Why it matters

For Kenyan SMEs that import raw materials, finished goods or equipment, the new rule could affect cash flow and inventory planning. Cargo held at the port incurs daily storage fees that can quickly erode profit margins, especially for low‑value items. Moreover, the requirement may expose firms that rely on informal insurance arrangements, prompting them to seek formal coverage or risk having shipments turned away. On the macro level, the policy is expected to improve revenue collection for KRA by reducing under‑declared values that sometimes accompany fraudulent insurance claims. It also aligns Kenya’s trade documentation with the digital standards of major trading partners such as the United Arab Emirates and China, potentially smoothing future negotiations on trade facilitation.

Practical steps

• Register on the KRA Digital Marine Insurance Registry before the end of September to allow time for system testing.
• Contact your marine insurer to confirm they can issue a compliant digital certificate and request a trial run of the upload process.
• Update your internal customs clearance checklist to include a verification step for the digital insurance number.
• Train logistics staff and freight forwarders on the new portal’s user interface to avoid last‑minute errors.
• Monitor storage charges and clearance timelines closely in October to gauge any operational impact before the November deadline.

Beavoren Ventures’ Tax Planning & Compliance team can help import‑dependent businesses navigate the digital marine insurance requirement, ensuring that documentation is accurate, deadlines are met and any potential tax implications are addressed.

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.