Namanga Traders Want Government to Scrap New Marine Cargo Insurance Rules

Importers and clearing agents at Namanga One-Stop Border Post are demanding the withdrawal of new marine cargo insurance requirements.

They warn that the policy could increase the cost of cross-border trade between Kenya and Tanzania.

The traders say businesses already face high operating expenses and may pass additional costs to consumers.

Their concerns follow the Kenya Revenue Authority’s implementation of mandatory digital marine cargo insurance.

The regulations require importers to obtain cargo insurance from locally licensed companies approved by the Insurance Regulatory Authority.

Under the new arrangement, importers must purchase marine cargo insurance through the designated digital system.

The policy aims to ensure goods entering Kenya are insured by providers licensed within the country.

However, traders operating along the Kenya-Tanzania border say extending the requirement to land cargo has disrupted their operations.

Why Namanga Traders Are Opposing the Policy

Importers and clearing agents claim they initially understood the requirement would apply to cargo passing through seaports.

They say applying it to goods entering through land borders caught many businesses unprepared.

Traders are also questioning why the government should restrict their choice of insurance providers.

One clearing agent argued that importers should remain free to select companies with which they already have business arrangements.

“If I wish to cover my goods as an importer, then I can take a cover note from an insurance company that is in agreement with me, but not somebody to come and dictate that I should use a specific insurance company,” one trader said.

The traders have also questioned the requirement prescribing specific insurance premium rates.

New Charges Could Reach KSh80,000 Per Truck

The importers warn that the additional insurance requirement could significantly increase transportation costs.

One clearing agent estimated that the insurance could cost between KSh50,000 and KSh80,000 per truck.

The agent said businesses already incur other operational expenses exceeding KSh70,000.

Combining the costs could push total expenses to approximately KSh150,000 per truck.

Such additional charges could particularly affect small-scale importers operating with limited profit margins.

Consumers Could Face Higher Prices

Traders argue that businesses may eventually transfer the additional expenses to consumers through higher prices.

Small-scale businesses could struggle to absorb the charges because of their limited operating capital.

A clearing agent warned that the policy could make accessing imported goods more expensive for smaller traders.

The concerns have raised questions about the impact of the regulations on trade between the neighbouring countries.

What Traders Want the Government to Do

Importers and clearing agents want the government to consult stakeholders before proceeding with the requirements.

They are particularly seeking a review of the policy's application to goods transported through land borders.

The traders also want importers to retain the freedom to choose their preferred insurance providers.

They argue that the government should consider the financial burden on businesses and consumers.

While acknowledging the importance of cargo insurance, they maintain that implementation should not create unnecessary barriers to cross-border trade.

The dispute now puts pressure on authorities to address traders' concerns over the new requirements.