Editor's Review

KRA announced that all cargo imported into the country must be covered by a valid Digital Marine Cargo Insurance (MCI) policy.

The Kenya Revenue Authority (KRA) announced that all cargo imported into the country must be covered by a valid Digital Marine Cargo Insurance (MCI) policy, effective November 1, 2026

In a public notice issued on Thursday, October 22, KRA said that it will enforce the new policy jointly with the Insurance Regulatory Authority (IRA).

The Authority clarified that to proceed with Customs clearance, the insurance certificate must be processed through the Digital MCI System and successfully transmitted to the iCMS platform before lodging a declaration.

"Importers and clearing agents are required to process insurance certificates through the Digital MCI System and submit them to the iCMS platform before lodging customs declarations," KRA wrote.

The Taxman warned that consignments that fail to meet the requirement will be blocked from clearance.

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A file photo of KRA offices.

"Non-compliant consignments will be blocked from customs clearance. To avoid clearance delays and trade disruptions, ensure full compliance ahead of the enforcement date," the Commissioner for Customs and Border Control wrote.

Additionally, KRA informed taxpayers that the Fringe Benefit Tax Market Interest Rate and the Deemed Interest Rate have both been set at 9% for October, November and December 2026.

It clarified that for deemed interest, a 15% withholding tax applies and must be deducted and remitted to KRA within five working days.

"Employers, businesses and other affected taxpayers are encouraged to take note of these rates and ensure compliance with the applicable tax requirements," the Authority wrote.

Earlier, KRA notified all Importers, Exporters and Transporters that it will transition to the Multi-Vendor User-Owned e-Seal Framework for electronic cargo tracking on October 26, 2026

The Taxman explained that the e-fuel electronic seals for dry cargo and motor vehicles will cease operations. Consequently, it advised users to engage approved vendors for a smooth transition.

KRA explained that the framework shall be based on private commercial agreement between the approved Vendors and users. Users are at liberty to select any of the approved Vendors.