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Letters of Credit for Import and Export Trade

Trading across borders requires confidence that payment and shipping documents will be handled securely. KCB Sahl Letters of Credit support eligible importers, exporters, distributors, manufacturers and other businesses involved in international trade.

For imports, KCB can issue a Letter of Credit in favour of an overseas supplier and support the transaction through an approved Shariah-compliant structure. Exporters can also receive support with advised or confirmed export Letters of Credit, subject to the transaction and applicable terms.

Features

Support import transactions

Bank-backed payment assurance for your overseas supplier.

Support export trade

Advising or confirmation support for eligible transactions.

Build supplier confidence

Payment assured once agreed documents comply.

Cash margin or approved LC facility

Depending on your relationship and assessment.

Document-based payment control

Payments handled against clearly defined terms.

Shariah-compliant trade finance

Including agency and Murabaha-based arrangements.

What We Need From You*

  • An LC facility or Cash margin..
  • KCB LC application form.
  • Pro-forma invoice.
  • Import Declaration Form (IDF)-where applicable.
  • Insurance cover e.g. marine insurance for sea transport.

A KCB representative may contact you for further information in line with KYC requirements. KCB will never ask you for your PIN or password.

Rates & Fees*

Commissions and bank charges shall be charged by the Bank from time to time according to its prevailing tariffs however for the time being these are charges.


Letters of Credit Issuance Commission:

  • Issuance: 2% once off with a minimum of Kes 5,000.
  • Document handling – Kes 500.
  • Swift charges – Kes 2,500 per swift.
  • Extension 2% p.a.
  • Cancellation fee - Kes 5,000.

Letters of Credit Amendments:

  • 2% once off subject to minimum of Kes 5,000.

Rates, fees, charges and product terms may change. Please refer to the latest KCB tariff guide or speak to a KCB representative before applying.

It's a bank undertaking to pay the exporter or beneficiary once compliant documents are presented and the LC terms are met. KCB Sahl Letters of Credit brings this structure to eligible import and export trade transactions.

A Letter of Credit gives your overseas supplier payment assurance while protecting you as the importer through document-based terms. KCB Sahl Letters of Credit is built to support exactly this kind of secure, structured import payment.

KCB offers Sahl Letters of Credit, structured through approved Shariah-compliant trade finance arrangements, for eligible import and export transactions.

You'll typically need an LC facility or cash margin, a completed KCB LC application form, a proforma or commercial invoice, applicable Import Declaration Form documentation, and insurance cover such as marine insurance where relevant.

An import LC helps you, as the importer, support payment to your overseas supplier. An export LC advising or confirmation service supports exporters who are receiving Letters of Credit from their buyers.

Yes. Eligible exporters can receive support with advising or confirmation of export Letters of Credit, depending on the transaction and applicable terms.

Yes, an LC is typically supported by either a cash margin or an approved LC facility. Confirm with KCB which option applies to your transaction and relationship.

Charges depend on the transaction and current bank tariff, and can include issuance, advising, confirmation, amendment, document handling and SWIFT charges. Speak to a KCB representative for the current applicable rates.

Eligible transactions are handled through approved Shariah-compliant trade finance structures, which may include agency and Murabaha-based arrangements depending on the transaction. Confirm the applicable structure for your LC with KCB.

Request a callback through the product page or speak to a KCB representative to confirm your facility or cash margin option, required documents, applicable charges and next steps.