Building resilient trade through modern marine cargo insurance
Sponsored by Heritage Insurance Company
By Francis Ndeleko, AIIK
Kenya’s trade landscape is changing rapidly. Investments in transport infrastructure, regional integration, digital customs systems and e-commerce are reshaping how goods move within the country and across East Africa. These developments are opening new opportunities for businesses to expand into regional and global markets.
Behind every shipment, however, lies more than cargo. Each consignment represents working capital, customer commitments, production schedules and business continuity. When goods are delayed, damaged or lost, the consequences extend far beyond logistics. Manufacturers face production disruptions. Retailers struggle to meet demand. Importers experience cash flow pressure, and exporters risk damaging long-standing business relationships.
As supply chains become more complex, Marine Cargo Insurance has evolved from a compliance requirement to a strategic business solution that helps organisations protect their operations and grow with confidence.
A new era for marine cargo insurance
Kenya's marine insurance sector has undergone significant transformation through regulatory reforms and digital integration. The implementation of Section 16A of the Marine Insurance Act, alongside Section 20(4) of the Insurance Act, requires imported cargo destined for Kenya to be insured by insurers licensed by the Insurance Regulatory Authority (IRA).
Marine insurance certificates are now obtained digitally through the Kenya Revenue Authority's (KRA’s) Integrated Customs Management System (iCMS), enabling customs officials to verify compliance before cargo is cleared.
This collaboration between IRA, KRA, and the Association of Kenya Insurers (AKI), has created a more efficient digital ecosystem. Real-time verification has reduced paperwork, improved transparency and accelerated customs processes for importers.
The reforms also strengthen Kenya's insurance industry by pumping more premiums in local underwriters. With annual imports valued at more than Ksh3.5 trillion, Marine Cargo Insurance represents a significant opportunity to retain insurance premiums within the country while building local underwriting capacity and expertise.
Protecting modern supply chains
Today's supply chains are interconnected. A shipment may travel by road to a port, move by sea, continue inland by rail or truck, and pass through several warehouses before reaching its destination. Every stage carries risk. Cargo may be damaged during handling, exposed to fire or water, stolen in transit, or affected by weather or congestion. For businesses running lean inventories, short delays can stall production and cost revenue. A single lost shipment can strain an SME’s cash flow, while larger organisations may face contractual penalties and reputational damage.
Marine Cargo Insurance provides financial protection against these risks, with cover extending across sea, air, road and rail transport, letting businesses recover quickly from losses and maintain continuity.
Heritage Insurance Company: A trusted insurance partner
As the regulatory environment grows more sophisticated, businesses need insurers who understand more than risk. They need partners with expertise in logistics, customs compliance and trade. Heritage Insurance Company has positioned itself as a trusted provider of Marine Cargo Insurance by combining underwriting expertise with a deep understanding of Kenya's evolving trade environment.
Our solutions are tailored for importers, exporters, manufacturers, freight forwarders, distributors and SMEs operating complex supply chains, with coverage spanning sea, air, road and rail transport.
With the rollout of the Digital Marine Cargo Insurance (DMCI) System, Heritage is proud to be part of this milestone in embracing technology essential to unlocking vast trade opportunities and strengthening its competitiveness in the regional and global market. The digital MCI platform provides a secure, seamless and compliant solution for consumers purchasing cargo cover, enabling them to obtain marine cargo insurance certificates through an ecosystem integrated with relevant regulatory bodies such as KRA and IRA.
Heritage has also developed a marine Insurance portal, integrated with the DMCI, where customers can obtain quotes, certificates and lodge claims directly through the portal. By combining specialist underwriting, digital capability and practical risk advisory, Heritage enables businesses to trade with greater confidence in regional and international markets.
Building resilient businesses
East Africa's trade environment continues to evolve through the African Continental Free Trade Area (AfCFTA), expanding e-commerce and infrastructure investment. These developments present enormous opportunity while increasing the complexity of supply chain management. Building resilient businesses requires proactive risk management – considering Marine Cargo Insurance early in procurement and logistics planning, and understanding cargo values, Incoterms, transport routes and documentation before goods begin their journey. When insurance forms part of supply chain strategy from the outset, businesses reduce uncertainty and improve their ability to respond to disruption
Looking ahead
Kenya is steadily strengthening its position as a regional logistics and commercial hub. As trade volumes grow, businesses will increasingly seek insurance partners that understand both the movement of goods and the risks that accompany modern commerce.
These pertinent issues are among the key discussions at the East Africa Logistics, Warehousing and E-Commerce Conference on July 30-31, 2026 at the Iconic plaza in Nairobi, organised by the Nation Media Group in partnership with the Kenya International Freight and Warehousing Association (KIFWA). The conference has brought together policymakers, manufacturers, logistics providers, insurers and business leaders to explore the innovations shaping the future of regional trade.
For Heritage Insurance, supporting this conversation reflects a broader commitment to helping businesses trade with confidence. Through our Marine Cargo Insurance, responsive underwriting, digital innovation and practical risk advisory, we continue to help organisations safeguard their investments and build resilient supply chains.
As often stated, “every shipment represents more than cargo. It represents working capital, customer commitments and business continuity. Protecting it is not simply good risk management. It is smart business.”
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Francis Ndeleko, AIIK, is a Business Development Executive at Heritage Insurance Company and an Associate Member of the Insurance Institute of Kenya
