Relief for the shilling as local underwriters take on marine cargo insurance
Business
By
Graham Kajilwa and John Maina
| Jun 30, 2026
The directive for local underwriting of marine cargo imported into the country is expected to provide further relief to the shilling, as a section of insurance firms join forces to provide covers of up to Sh4 billion.
The directive, which takes effect today (July 1), demands that every importer with marine cargo utilise the expertise of local underwriters. This is in line with the Finance Act, 2017 and consequent amendments to the Marine Insurance Act.
Unlike before, marine cargo insurance will also be accessed digitally. The Kenya International Freight and Warehousing Association National Chairman, Fredrick Oloo, June 30, 2026. [Benard Orwongo, Standard]
On Tuesday, a section of players in the sector, in partnership with the Kenya International Freight and Warehousing Association (Kifwa), unveiled a platform where importers can purchase insurance digitally.
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The uniqueness of this product is that it is a warehouse-to-warehouse cover, which eliminates the need to purchase goods in transit cover.
George Kidenda, who serves as a trustee in Kifwa, said the implementation of the directive is a much-needed innovation for the country’s export-import business.
He detailed how this move solidifies Kenya’s position in regional trade, particularly in light of the Africa Continental Free Trade Area (AfCFTA), while also safeguarding runway capital.
Kidenda said previously that premiums have always gone to foreign insurers, which not only hurt local businesses but also the shilling.
“Over the years, because marine insurance is embedded in the CIF (cost, insurance and freight) contract, it has presented a silent but significant outflow of foreign currency,” he said.
He noted that by localising marine cargo insurance business, the government indirectly unlocks a pool of capital needed for its infrastructure projects.
As such, the premiums stay in Kenya, are invested in Kenyan assets, and contribute to the deepening of the country’s capital markets, eventually supporting the very infrastructure funding initiatives the government needs.
“Furthermore, by reducing the demand for foreign currency to pay overseas insurers, the directive contributes to stabilising the shilling,” he said. “The retention is meaningful to the exchange rate stability, an outcome that benefits every exporter, importer, manufacturer, and consumer in our country.”
Additionally, by directing that the premiums remain in the domestic market, local insurers would have ground to build expertise and this would also bring down the cost.
“Once local insurers secure a constant flow of marine cargo business, they will develop into a stable market and be able to offer adequate cover at fair prices,” he said.
Data from the Insurance Regulatory Authority (IRA) shows gross direct premium income for the marine class of business grew 10.4 per cent in 2024 from Sh4.3 billion to Sh4.7 billion.
This figure has been steadily growing since 2020, when it stood at Sh3.1 billion.
Net premium earned in the period stood at Sh2.2 billion, a growth of 10.0 per cent.
One of the challenges with marine cargo insurance has been capacity.
This is the reason why some players, through Kifwa, have come together to launch a platform where importers can access covers for goods of up to Sh4 billion without the previous red tape.
These players are Britam, CIC, APA, Pacis and Old Mutual as the underwriters. Dynamique Insurance Brokers, Safaricom and eCitizen, as the payment gateway, are also parties.
Both the Kenya Revenue Authority (KRA) and the Insurance Regulatory Authority (IRA) play a supervisory role in the product rollout.
Leonard Chirchir, Chief Operating Officer, Britam, said localisation of the product would also allow importers to know who exactly is going to compensate them in the event of a claim. Before, this has been a challenge.
He said the combined capacities of the partner players have made it possible for clients to access covers of up to Sh4 billion just by a click.
“Currently, if you want to cover goods worth Sh1 billion, insurance companies have to go through so many processes, which can take a day. In logistics, a minute lost is a business lost,” he said.