Marine and Cargo Insurance: A Guide for Kenyan Importers
Through the port of Mombasa alone, Kenyan businesses import goods worth more than USD 18 billion every year. A single damaged or missing container can wipe out months of margin. Marine cargo insurance is the safety net every serious importer needs.
The three Institute Cargo Clauses
ICC (A) — All Risks
The broadest cover. Pays for loss or damage to cargo from any cause not specifically excluded — including theft, water damage, handling damage and accidental loss. The default choice for high-value, fragile or branded goods.
ICC (B) — Named Perils (medium)
Covers a defined list of named perils — fire, vessel grounding, collision, jettison, general average — but not theft or simple handling damage. Suitable for bulk commodities of moderate value.
ICC (C) — Named Perils (minimum)
The cheapest tier, covering only catastrophic perils. Adequate only for low-value, hard-to-damage bulk cargo.
How premium is calculated
Marine cargo rates run from 0.15% of CIF value for low-risk bulk to over 1% for high-value electronics. Most Kenyan importers shipping general cargo under ICC (A) pay 0.30% – 0.45%. Open Cover (annual policy for frequent importers) drops rates further versus single-shipment policies.
General Average — the rule most importers do not know
If a ship is in distress and the captain has to jettison cargo to save the rest, every cargo owner contributes proportionally — even if YOUR container is safely landed. Without marine insurance you pay that contribution out of pocket. With insurance, the underwriter pays it for you.
From which point is cargo insured?
A properly structured marine policy covers warehouse-to-warehouse: from the supplier's premises, through the ocean voyage, port handling, road transport from Mombasa, all the way to your warehouse in Nairobi. Make sure the policy's transit clause covers the full route.
What you need to file a claim
- Original commercial invoice and packing list
- Original bill of lading
- Survey report from an approved marine surveyor
- Photographs of the damaged cargo
- Notice of damage filed within three days of discharge
- Letter of protest to the carrier and port authorities
Frequently Asked Questions
Is marine cargo insurance compulsory in Kenya?keyboard_arrow_down
It is mandatory for goods imported into Kenya to be insured locally under the Insurance Act, with very limited exceptions. Most importers buy ICC (A) cover through a Kenyan underwriter.
What is the difference between ICC (A), (B) and (C) cover?keyboard_arrow_down
ICC (A) is all-risks cover. ICC (B) covers a named medium list of perils. ICC (C) covers only catastrophic perils and is the cheapest, most basic option.
Need tailored advice?
Talk to a Zest Insurance advisor and get a quote tailored to your situation — at no extra cost.
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