How digital marine insurance is impacting trade in Kenya

Traders moving goods through the Mombasa port have reason to celebrate. Improved operational efficiencies and higher trade flows resulted in a significant growth in cargo handled at the port in 2024.

According to the Kenya Ports Authority, container traffic grew by 23.53 percent to hit a record of 2,005,076 twenty-foot equivalent units (TEUs) up from 1,623,080 in 2023.

The improvement of both efficiency and throughput at the Mombasa port bodes well for the country which has renewed focus to stimulate the blue economy as a driver of national development. It also signals renewed investor confidence in Kenya’s economy and underscores the strategic role of Mombasa Port as key gateway to East and Central Africa.

Strategically, the government, through the Kenya Revenue Authority (KRA) and Insurance Regulatory Authority (IRA), continue to promote a directive requiring importers to procure digital marine insurance from local providers. Although the directive came into force in February 2025, its legal foundation was laid in the Finance Act of 2017 and subsequent amendments to the Maritime Insurance Act.

This policy shift benefits the economy in multiple ways. Not only does it stimulate the local insurance industry, it also curbs capital flight, and ensures revenue retention within Kenya.

More importantly, it enables local insurers to provide customised solutions that addresses Kenya’s unique needs and logistical challenges.

Marine insurance is not just a matter of regulatory compliance. It is an essential risk management tool that ensures business continuity and peace of mind, despite the numerous risks faced on the high seas. The movement of goods by sea is fraught with risks including lost goods, damage, or even loss due to capsizing.

Protection against these potential losses allows traders to focus on their operations, and insurance gives the traders the confidence knowing that they are protected in case of any such setbacks.

Digital transformation is making access to marine insurance services locally easier, faster and more transparent. With the advances in internet accessibility, mobile applications, cloud computing, and big data management, there’s a significant reduction in the paperwork involved in acquiring and managing insurance policies.

The local insurers have continued to invest in digital insurance platforms that allow shippers to quickly apply for a policy and receive certificates online, significantly reducing the time spent on the processes and improving efficiency.

Furthermore, these digital platforms enhance transparency by clearly outlining policy terms, making it easier to understand coverage. On the other hand, digital capabilities simplify claims processing and enhance customer service, and with the risk carriers locally available, they are more accessible and responsive to clients’ needs.

Digital insurance platforms also offer visibility across the organisation. Importers can track which of their cargo is protected, monitor claims progress, and identify any coverage gaps in real time, monitor claims progress and identify any coverage gaps in real time.

It is imperative to also note that modern marine insurance goes beyond the high seas transport. It equally considers the entire logistic chain, from the port to inland depot and or from warehouse to warehouse. For importers, this means they can choose coverage that includes road, rail, and port segments depending on the destination.

Additionally, good insurers understand that cargo must get to the port and leave the port in addition to going on the ship. They build a variety of options into marine insurance policies.

Port to port coverage or warehouse to warehouse coverage, depending on the desired destination. Policy options, including the Institute Cargo Clauses (ICC A, B or C) offer varying levels of protection, with ICC(A) providing the broadest coverage for all risks, including perils of the sea.

For instance, the Nairobi Inland Container Depot can handle 450,000 TEUs annually, while the Naivasha facility has a capacity of 250,000 TEUs. Moving cargo from Mombasa to either of these dry port facilities requires comprehensive coverage that spans multiple transport modes.

At Old Mutual, we allow customers the option of choosing whether they want coverage from port to port, or warehouse to warehouse, ICC (A, B or C). This consideration reduces the workload for customers, allowing them to cover their cargo across intermodal and multimodal transport, ensuring their goods are always safe regardless of their position in the supply chain.

In essence, the integration of digital innovation into marine insurance is modernising how traders protect their goods while also unlocking operational efficiencies that enhance Kenya’s position as a regional trade hub.

By embracing digital platforms, backed by good insurance coverage, importers and exporters can access faster, more transparent and comprehensive coverage that’s tailored to the complexities of modern logistics.

As trade volumes through Mombasa port continue to increase and surpass pre-Covid levels, the growing strategic importance of the dry ports and seamless movement of cargo requires robust and adaptable insurance solutions. These developments ultimately empower businesses to grow with the confidence that they are protected every step of the way.

The writer is the General Manager Reinsurance & underwriting at Old Mutual General Insurance Kenya