Clearing agents fault new marine insurance plan

Kifwa official William Ojonyo. PHOTO | JARED NYATAYA 

In Summary

• The agents claim that the process is going on without involving them and by extension importers.

By JAMES NGUNJIRI

Clearing and forwarding agents have protested over being left out of implementing the local marine insurance policy, which became effective over a fortnight ago.

Through their lobby Kenya International Freight and Warehousing Association (Kifwa), the agents Wednesday claimed that the process is going on without involving them and by extension importers.

“Marine insurance is not a new phenomenon, we have always worked on imported goods insured or otherwise. The fact that they want to collect that insurance locally is what is now bringing the gap in terms of the procedure,” said Kifwa official William Ojonyo at a Press briefing in Nairobi.

“We are not against it, it is only that they are not bringing us on board to understand.” The lobby represents interests of about 1,200 clearing, forwarding and warehousing companies in the country. The Insurance Regulatory Authority (IRA) has, however, said it will conduct stakeholder sensitisation workshops in Nairobi, Mombasa, Kisumu and Eldoret.

Local insurance companies have already positioned themselves for a piece of the Sh30 billion marine cargo insurance (MCI) market.

The new MCI regulations, which became effective on January 1, place the marine insurance business exclusively in the hands of local underwriters.

Mr Ojonyo, who is also the managing director of Keynote Logistics, said the lobby is keen on supporting the local industry but regulators have not involved members.

“We do not know how this process should be implemented. We think they (regulators) have jumped the gun and put the horse before the cart,” said Mr Ojonyo.