Kenya: Marine cargo insurance
Foreign insurers are no longer permitted to write marine cargo insurance in or from Kenya
Lloyd’s would like to advise market participants that from 1 January 2017 most marine cargo insurance in Kenya can only be written by local insurers. The requirement for local insurance is contained in Section 20 of the Insurance Act, which stipulates that Kenyan insurance business should not be placed with insurers not registered under the Act. This section had not been previously implemented in practice in respect of marine cargo policies due to local compliance challenges. However, the Kenyan Government has recently instructed Kenya Revenue Authority to work with stakeholders to fully implement Section 20 of the Act. As a result, most marine cargo shipments with foreign insurance policies may not be permitted to enter Kenyan ports.
Under Kenya Insurance Act, “Kenya business” and “Kenya reinsurance business” is defined as insurance business carried on by an insurer in respect of any person, human life, property or interest situated in Kenya, or in respect of which premiums are ordinarily payable in Kenya and include insurance business in respect of any vessel, hovercraft or aircraft registered or ordinarily located in Kenya, including marine cargo insurance policies for commercial imports but excludes marine cargo insurance policies issued on personal effects, goods and items imported into Kenya by returning residents or passengers entering Kenya for permanent or temporary residence.