Low marine insurance uptake exposes firms to mounting trade risks
Kenyan businesses are leaving billions of shillings worth of cargo exposed to losses despite increasing risks in global trade, highlighting a significant opportunity for growth in the marine insurance sector.
Industry data shows Kenya’s marine cargo insurance segment generated Sh2.94 billion in insurance service revenue in 2025, supported by 32 underwriting firms. However, the uptake of marine insurance remains low compared to the country’s annual import bill of more than Sh2.7 trillion, revealing a sizeable protection gap within the trade ecosystem.
The concern comes at a time when Kenya is strengthening its position as a regional trade and logistics hub, with the Port of Mombasa serving as a key gateway for cargo destined for East and Central Africa.
Speaking during a Britam Marine Insurance Masterclass in Nairobi, industry players warned that businesses involved in importation, exportation, transportation and logistics are facing a more complex risk environment characterised by geopolitical tensions, cyber threats, climate-related disruptions, piracy and shifting trade regulations.
Britam General Insurance chief executive James Mbithi said marine insurance is increasingly becoming a critical component of business continuity as firms navigate uncertainties in global supply chains.
“Today’s businesses face a complex risk environment that spans global supply chains, geopolitical uncertainty, digital vulnerabilities and climate-related disruptions. Marine insurance is a critical business continuity tool that enables enterprises to move goods across borders with greater certainty and resilience,” said Mr Mbithi.
Cargo transported across international waters remains exposed to vessel collisions, fires, explosions, piracy attacks, adverse weather conditions and handling errors during loading, storage and transit. Such incidents can lead to substantial financial losses and prolonged supply chain disruptions.
Industry experts noted that while trade volumes continue to expand, awareness and adoption of cargo insurance solutions have not kept pace, leaving many firms vulnerable to unexpected losses.
The forum also examined the impact of technological advancements on marine insurance. Digital platforms are increasingly enabling customers to purchase cover, generate cargo certificates and monitor shipments more efficiently.
However, experts cautioned that increased digitisation is introducing new cybersecurity risks that require businesses to adopt broader risk management measures.
MarinaiR Surveyors and Adjusters chief executive Joe Kamomoe said the interconnected nature of modern commerce means a single disruption can trigger far-reaching financial consequences.
“Strong risk mitigation measures, supported by robust marine insurance coverage, are key for businesses seeking to protect assets and maintain operational continuity,” said Mr Kamomoe.
Participants also highlighted the growing role of bancassurance partnerships in broadening access to specialised insurance products for businesses and individuals.
As Kenya accelerates investments in trade infrastructure, logistics, shipping and blue economy initiatives, insurers are positioning marine insurance as a strategic tool for safeguarding cargo, protecting business value and supporting long-term growth.
The discussions brought together bankers, insurers, marine surveyors and risk management specialists to explore emerging trends in marine insurance and its role in supporting trade resilience.
