Do Kenyan exporters need cargo insurance?
Not by law: the local-placement rule applies to imports. But exporters selling on CIF or CIP terms must insure the goods for the buyer, and any exporter who keeps the risk until delivery needs cover to get paid if the goods are lost. Export cargo can be insured with a Kenyan insurer by choice. See marine cargo insurance for how the cover works.
Cover by type of export
Flowers, fruit and vegetables
Air freight under ICC (Air), with care over temperature: natural deterioration and delay are excluded unless an extension is agreed.
Tea and coffee
Often sold FOB at Mombasa so the buyer insures; exporters selling CIF need cover to the destination port.
Apparel and EPZ goods
Containerised sea freight to the US and Europe, usually on ICC (A).
Manufactured goods to the region
Road transit to Uganda, Rwanda, Tanzania and beyond: marine cover or goods in transit with the territories added.
When the exporter must insure
| Terms | Who insures | Minimum cover |
|---|---|---|
| FOB / FCA | The buyer | None required of you |
| CFR / CPT | The buyer, though the risk passed early | None required, but contingency cover is wise |
| CIF | You, for the buyer | ICC (C), 110% of the contract value |
| CIP | You, for the buyer | ICC (A) or ICC (Air), 110% of the contract value |
| DAP / DDP | You, until delivery | Your choice; usually ICC (A) |
- Who insures
- The buyer
- Minimum cover
- None required of you
- Who insures
- The buyer, though the risk passed early
- Minimum cover
- None required, but contingency cover is wise
- Who insures
- You, for the buyer
- Minimum cover
- ICC (C), 110% of the contract value
- Who insures
- You, for the buyer
- Minimum cover
- ICC (A) or ICC (Air), 110% of the contract value
- Who insures
- You, until delivery
- Minimum cover
- Your choice; usually ICC (A)
Kenya's export trade
Kenya's exports were worth KES 1.12 trillion in 2025. The top domestic exports were horticulture (KES 216.5 billion), tea (KES 187.1 billion), apparel (KES 63.3 billion) and coffee (KES 52.1 billion); the EAC took KES 351.2 billion.
Source: KNBS, 2026 Facts and Figures
After the Red Sea attacks, Kenyan importers faced up to double freight costs and higher premiums from January 2024, and in July 2025 insurers doubled premiums for shippers using the Red Sea (The EastAfrican).
Source: The EastAfrican, 31 July 2025
Perishables: what to agree with the insurer
- Temperature control and refrigeration breakdown, which standard clauses exclude
- Delay: excluded under all clauses, so plan routes with buffers
- Packing and pre-cooling standards, often written into the policy as warranties
- How fast you must report damage at destination, and who surveys it
- Whether rejection by the importing country's authorities is covered (usually not)
Single shipment or open cover?
Occasional exporters
A single-transit policy for each consignment, priced on its value and route.
Regular exporters
An annual open cover: every shipment insured automatically within the limits, declared monthly or as you ship.
Credit risk is separate
Marine cover pays when goods are lost or damaged, not when a buyer fails to pay; that is trade credit insurance.
Frequently asked questions
Does the local marine insurance rule apply to exports?
No notice issued so far applies it to exports. The Insurance Act names imports only, and the digital certificate is enforced through import declarations. Exporters who sell on CIF or CIP terms still need cargo cover, and can buy it from a Kenyan insurer by choice.
Should I choose ICC A, B or C?
Choose ICC (A) for most goods, especially anything fragile, valuable or easy to steal: it covers all risks except the listed exclusions, including theft and handling damage. ICC (B) and (C) cover named events only and suit robust bulk goods where theft and breakage are unlikely. The price gap is often smaller than the gap in cover.
What is a marine open cover?
An open cover is an annual agreement that insures every shipment you make within agreed limits. You declare each shipment, pay premium as you go, and avoid buying a new policy every time. Each import still needs its own digital certificate.
Is war and strikes cover included?
Usually not. War, strikes, riots and civil commotion are added with the Institute War and Strikes Clauses for an extra premium, which market estimates put at about 0.05% of the cargo value. Routes through listed war zones, such as the Red Sea since 2024, can cost much more.
How do I make a marine cargo claim?
Tell us and the insurer as soon as you see damage or a shortage, before you sign a clean delivery receipt. Keep the goods and packing, ask for a survey, give the carrier written notice of a claim, and send the claim documents. We follow the claim through to settlement.
What value should I insure my cargo for?
Most insurers expect the CIF value plus 10%. Some accept 10% to 20% for clearing, duty and other costs. If you insure for less than the goods are worth, the insurer can reduce a claim in proportion, so do not under-declare to save premium.
Shipping to buyers abroad?
Tell us what you export, where and how often. We compare Kenyan insurers for single shipments and annual open covers.
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Sources
Facts and published prices checked 18 Oct 2026; last reviewed October 2026 by Naveah Capital. Rates shown are market estimates before levies, not a quote or a promise. Naveah Capital Insurance Agency is an IRA-licensed insurance agency in Nairobi; this page is general information, and your policy wording decides your cover.
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