Kenya’s trade sector is growing at a remarkable pace, drawing billions in blue economy investments and deepening ties to global supply chains. Yet industry experts are sounding the alarm: too many businesses are leaving themselves dangerously exposed by failing to adequately insure cargo moving across international waters.
The scale of the risk is difficult to ignore. Kenya brings in imported goods worth more than Sh2.7 trillion every year, yet the take-up of marine insurance among local businesses remains strikingly low. Professionals in the sector describe this as a critical protection gap — one that could leave importers facing devastating losses with no financial safety net in place.
The issue was placed squarely on the table at a marine insurance forum held in Nairobi, where Britam General Insurance Chief Executive Officer James Mbithi urged businesses to rethink their approach to risk management. Mbithi argued that enterprises routinely underestimate the damage a supply chain disruption can cause. “Marine insurance is a critical business continuity tool that enables enterprises to move goods across borders with greater certainty and resilience,” he told delegates at the forum.
At the heart of these concerns sits the Port of Mombasa, a gateway that serves the entire East and Central Africa region and handles millions of tonnes of cargo every year. Despite its strategic importance, the port remains exposed to a wide range of threats. A single incident — whether a vessel collision, an onboard fire, a piracy attack, severe weather, or straightforward cargo damage — can generate losses running into millions of shillings. That exposure is especially serious for importers handling high-value goods such as machinery, electronics, and industrial equipment.
MarinaiR Surveyors Chief Executive Officer Joe Kamomoe reinforced the message by highlighting just how tightly interwoven global trade has become. Disruptions in one corner of the world, he noted, can spread rapidly through supply chains thousands of kilometres away. “Strong risk mitigation measures, supported by robust marine insurance coverage, are key for businesses seeking to protect assets,” Kamomoe said.
Regulators have now decided that voluntary adoption is no longer sufficient. The Insurance Regulatory Authority has issued directives requiring that all goods imported into Kenya be insured through locally licensed companies, with the new rules taking effect on July 1. The move is designed to both protect Kenyan importers and channel more premium revenue through the domestic insurance market.
For businesses that depend on imported stock, the directive signals a clear turning point. Industry voices are united in calling on importers, freight forwarders, and supply chain managers to stop treating marine insurance as an optional overhead and start recognising it as a fundamental pillar of doing business in an increasingly unpredictable global trading environment.
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