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Trade Finance

KCB facilitates local and cross-border trading through operations and liquidity financing, as well as mitigating risks inherent in trade.

Choose from our range of Trade finance solutions based on your unique needs;

  • Advance Payment Guarantees

    Sometimes the contract stipulates that payment needs to made in advance. The Advance Payment Guarantee is assured value for money. The facility guarantees that the amounts advanced will be repaid if the contractor does not fulfill the obligations set out on the contract.

    What we need from you:

    • Full or partial security cover depending on your risk profile

    Rates and Fees*

    • 4% commission per annum (negotiable)

    *Charges are not inclusive of tax

  • Performance Guarantee

    Great, you’ve landed that contractor’s project. What next? Get a Performance Guarantee for your employer or concessionaire to guarantee that you will carry out the obligation set out in your contract of works.

    What we need from you:

    • Full or partial security cover depending on your risk profile

    Rates and Fees*

    • 4% commission per annum (negotiable)

    *Charges are not inclusive of tax

  • Supply Chain Financing

    This is automated funding that enables suppliers to access funds for verified deliveries without the need to provide your own collateral. KCB partners with Buyers to provide support to their network of Suppliers.

    *Terms and Conditions apply.

  • Bid Guarantees

    Are you a contractor bidding for the next big project? The Bid Guarantee will ensure that you bag it, while assuring an employer that you will not withdraw the bid within the specified period for acceptance. It also assures them that you will hold up your end of the bargain and furnish the required bonds in the agreed period of time.

    You have an option of an unsecured Bid Guarantee of up to KSh 50 Million or equivalent in foreign currency.

    What we need from you:

    • Duly filled Guarantee Application form (format of the bid security)

    Rates and Fees*

    • 4% commission per annum on unsecured Bid Guarantee (negotiable)

    *Charges are not inclusive of tax

  • LPO Financing

    When you receive an order from a known buyer but are unable to finance it from your own sources, KCB will offer you LPO Financing to enable you fulfil the order.

  • Certificate Discounting

    Don’t stall your project due to any unreceived payments. Our working capital loan facility allows you to stay liquid pending any receipts or collection of payment for work already invoiced. This facility offers the benefit of managing working capital and cash flow requirements for the contractor such as wages, salaries and other supplier payments pending collections.

    What we need from you:

    • Certified copy of certificate to be discounted, duly executed by the employer
    • Request letter on company letter head
    • Company Incorporation documents including certificate of incorporation (COI), PIN and Memorandum & Articles of Association
    • 3 years audited financials
    • Profile of the company, key persons in management and its directors

    Rates and Fees*

    • Profit Rate - Central Bank Rate (CBR) + 4%
    • Facility Fees - 2% one-off flat charge (negotiable)

    *Charges are not inclusive of tax

  • Stock Financing Facility

    The bank can finance you to purchase stock in bulk while using that same stock as security, under a collateral management arrangement, for as long as your stock is a globally traded commodity. E.g petroleum for oil marketing companies, rice, sugar, tea, coffee etc for traders.

  • Post-Import Finance Facility

    Sometimes your payments to your suppliers fall due before you are paid by your buyers. With the Post-Import Finance Facility, KCB will bridge the financing gap and give you flexibility with additional time on your credit.

     

  • Working Capital Finance

    This offer will help you to get an advance from KCB against your accepted Bills and invoices. The advance will be based on the face value of the invoice or bill where payment from the buyer will be at an agreed future date.

  • Pre-Shipment Finance/Pre-Export Finance

    This short-term offer is primarily offered to exporters. We help finance your products and base your repayments on your export proceeds or funds owed by your buyers.

  • Documentary Collections

    We enable the importation and exportation of goods by handling the documents presented in the required order. This could be cash against documents, acceptance documents and/or the banks guarantee.

  • Letters of Credit (LCs)

    Letters of Credit* help reduce the various risks that come with local and international trade. We support you by guaranteeing payment to your supplier if specified terms are met.

    What We Need

    • KCB LC application form
    • Import declaration form, where applicable
    • A pro-forma invoice
    • Evidence of an LC facility or cash equivalent e.g. cash in fixed deposit.
    • Insurance e.g. marine insurance for sea transport

    *If required, KCB will advise and confirm LCs for customers as well as non-customers

  • Bank Guarantee/Bonds

    When you sign a business contract and need a guarantor, KCB Bank will step in on your behalf to reduce the risk of non-payment or non-performance. KCB Guarantees are accepted both locally and internationally.

    KCB is able to offer you various types of Guarantees including but not limited to:

    • Tender/Bid Bonds
    • Performance Bonds
    • Advance Payment Guarantees
    • Retention Bonds
    • Shipping Guarantees
    • Customs Bonds
    • Security Bonds
    • Credit Guarantees

    What We Need

    • Customer’s letter of request
    • The guide/wording of the required Guarantee (if available)
    • KCB Guarantee application form
    • An approved Guarantee line of credit/credit appraisal

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