KenTrade integrates insurers’ systems to boost maritime trade

By Isaac OGANGA

Kenya Trade Network Agency (KenTrade) has embarked on a sensitization programme targeting insurance companies aimed at integrating them on the upgraded Trade Facilitation Platform (TFP) in a bid to enhance efficiency in maritime trade.

KenTrade ICT Director Anne Waweru said the integration of insurance companies’ systems with TFP will ensure a seamless submission of the marine cargo certificate to regulatory agencies, faster processing of documents and claims thus leading to reduction in the cost of doing business and a subsequent improvement in the standards of service delivery.

“This forum hopes to sensitise the maritime and insurance industry players on our role in facilitating trade in the country while emphasising on the Trade Facilitation Platform which incorporates insurance services through the Maritime Single Window System,” Waweru said.

The Trade Facilitation Platform was as a result of upgrading the TradeNet System in a bid to increase efficiency. It is a superior platform that provides a better user experience as it is based on modern technologies and incorporates best international practices and standards.

Since the TradeNet System was upgraded, six insurance companies are fully integrated with Trade Facilitation Platform. The Insurance Act 2020 contains a directive by the government requires shippers to procure Marine Cover Insurance for all their imports from Kenya’s underwriters.

The requirement contained in Section 20 of the Insurance Act states that ‘No insurer, broker, agent or other person shall directly or indirectly place any Kenyan business other than reinsurance business with an insurer not registered under this act’.

The six insurance companies already integrated to the Trade Facilitation Platform include GA Insurance, Heritage Insurance, Jubilee Insurance, APA Insurance, Mayfair Insurance as well as Occidental Insurance.

“It is expected that with an increase in the uptake of marine cargo insurance, the premium rates may reduce to the benefit of importers. Importers, especially those with high volumes, are able to negotiate for discounts on insurance rates with local underwriters in a language they understand,” she added.

The Agency figures indicate that Kenya’s marine cargo cover insurance is estimated at Kes. 96 billion ($800 million) annually.

Latest data from the recently launched KenTrade Business Intelligence (BI) tool shows there has been a 1.58 percent decrease in the Import levels of cargo received at the ports  from 27,770 (metric tonnes) in 2020 to 27,332 (metric tonnes) in 2021.

Export in volume has gone up from 4,205 (metric tonnes) in 2020 to 4,612 (metric tonnes) in 2021, translating to a 9.68 percent increase in volume of exports through the port. The general trend for export commodities via the port of Mombasa has been on an upward trend.

“The total graph for the imports and the exports has increased over time with its total at an average of 30,000 metric tonnes for the last three years. The number has however decreased in 2021 as compared to 2020 with a total of 31,000 metric tonnes yielding a decrease of 0.1 percent in the summation for the imports and the exports in the same period,” the report indicates.