Kenya’s expanding trade volumes are increasing the need for stronger protection for goods moving through the country’s ports, border points and supply chains, with insurance experts calling for smarter risk management to safeguard the country’s growing commercial ambitions.
CIC General Insurance Ltd Underwriting Manager–Technical and Risk Improvement Douglas Chepkuto said every container arriving at a Kenyan port, every truck crossing a border and every consignment delivered to a warehouse represents far more than its commercial value.
According to Chepkuto, such cargo carries jobs, working capital, business continuity and the confidence of entrepreneurs who commit substantial resources long before their goods reach their destination.
He said marine cargo insurance should no longer be treated merely as a document required to complete import clearance, given the growing risks facing international trade.
“Supply chain disruptions, unpredictable shipping costs, climate-related risks, changing regulations and rising customer expectations have fundamentally changed the trading environment,” Chepkuto said.
He noted that as Kenya’s trade volumes continue to increase, the systems designed to protect cargo must evolve at the same pace to ensure businesses remain resilient.
More than 80 per cent of global trade by volume is transported by sea, making marine transport a critical pillar of international supply chains and economic resilience.
The importance of effective cargo protection is expected to become even greater as Africa pursues deeper economic integration through the African Continental Free Trade Area (AfCFTA).
The agreement seeks to establish a single African market covering 55 African Union countries and approximately 1.3 billion people, creating opportunities for increased intra-African trade, investment and economic growth.
Chepkuto said Kenya’s ability to take advantage of these opportunities would depend on more than reducing tariffs and eliminating trade barriers.
The country must also ensure goods move efficiently across borders, supply chains remain connected and businesses have confidence in the systems supporting commerce.
“Marine insurance is not simply an administrative requirement. It is part of the trust infrastructure that enables commerce to flourish,” he said.
He said effective insurance protection provides businesses with confidence to participate in domestic, regional and international trade by reducing the financial consequences of unexpected losses while goods are in transit.
The introduction of Digital Marine Cargo Insurance (DMCI) is expected to significantly transform Kenya’s import, logistics and insurance landscape.
From July 1, 2026, importers are required to obtain marine cargo insurance digitally from providers licensed in Kenya before customs clearance.
The new system connects insurance, payment confirmation and government approval processes within a more integrated digital framework.
Chepkuto said the shift could help eliminate some of the delays and uncertainties previously experienced by importers and clearing agents when obtaining insurance certificates, confirming payments and securing authorisation.
He said trade could be disrupted not only by shortages or unavailability of goods, but also by slow, fragmented or unclear administrative processes.
A connected digital system, he added, could bring insurers, regulators, payment platforms and border infrastructure closer together while improving efficiency and transparency.
For importers and clearing agents, the system could mean less paperwork, faster processing and greater predictability, while regulators would benefit from enhanced oversight and compliance.
However, Chepkuto cautioned that the success of DMCI should not be measured simply by the number of insurance certificates issued or the speed at which they are processed.
He said the bigger opportunity was to strengthen Kenya’s marine insurance industry and ensure that a greater share of the economic benefits generated by trade remains in the country.
When import risks are insured by local companies, more insurance premiums remain within the domestic economy, supporting businesses, employment and the development of a stronger local insurance industry.
Local insurers can also develop products tailored to the realities of Kenyan businesses while providing accessible support when claims arise.
Chepkuto said the success of digital marine cargo insurance would depend on close cooperation among players across the trade ecosystem.
Insurers, insurance intermediaries, clearing and forwarding agents, importers, regulators and technology providers must work together to ensure the transition is efficient, practical and trusted.
With customers demanding greater convenience and regulators insisting on stronger compliance, he said no single institution could address the challenges alone.
For insurers, the responsibility extends beyond providing financial protection to understanding customers’ businesses, identifying emerging risks and developing solutions suited to their changing needs.
Clearing agents, he said, need reliable systems and responsive insurance partners, while regulators require both compliance and cooperation from industry players.
Chepkuto cautioned against viewing digitisation simply as a replacement for paperwork.
He said an effective digital platform should improve customer experience, reduce disputes, strengthen compliance and provide meaningful protection for goods while in transit.
“The real measure of DMCI’s success should not only be the number of certificates issued, but whether importers experience faster processing, fewer disputes, better compliance and stronger protection for their goods,” he said.
Kenya has positioned itself as a regional logistics and commercial hub, with ambitions to expand enterprise, strengthen formal trade systems and improve the ease of doing business.
Chepkuto said achieving these objectives would require more than investment in ports, roads and border infrastructure.
Reliable financial protection that operates at the same pace as modern trade would also be essential to maintaining confidence among businesses and investors.
He said the future of commerce would favour markets capable of moving goods efficiently, protecting commercial value intelligently and providing businesses with systems they can trust.
Kenya, he added, has an opportunity to achieve all three as it embraces digital marine cargo insurance and deeper regional trade integration.
But for the reforms to deliver their full benefits, Chepkuto said the system must work not only for regulators and industry players but also for importers, traders and businesses whose livelihoods depend on the smooth movement of goods.
He said continued collaboration would be necessary to address emerging risks, improve awareness and ensure that businesses understand the importance of adequate cargo insurance.
As regional and international trade expands, he noted that Kenya’s insurance industry must continue innovating to meet the evolving needs of businesses and protect commercial activity against emerging risks.
Kenya’s trade ambitions are growing rapidly, Chepkuto said, and they must now be matched by equally smart, accessible and responsive risk protection.
By Joseph Ng’ang’a
