Trade Finance

Our trade solutions facilitates local and cross-border activities to manage finance operations and liquidity, as well as mitigate risks inherent in trade.

Letters of Credit (Import & Export LCs)

Issued by the Bank at the request of the customer (applicant/importer) where the Bank promises to pay the beneficiary/exporter for goods and services.


  1. Payment is guaranteed by both the issuing bank and the confirming bank as long as compliant documents are presented.
  2. Mitigates the buyer/country risks
  3. Can allow multiple/continuous shipments and quality of products and price guaranteed by an independent pre-shipment inspection company
  4. Allows access to other products e.g. pre-shipment finance and structured finance
  5. Ensures delivery is done within schedule and payment

Qualifying Criteria:

  1. Beneficiary presents all documents called for
  2. Meets all other terms and conditions set out in the LCs.


Pre-shipment financing

Facility for customers to purchase inputs for the production process of goods which are for onward sale/export.


  1. Helps to generate additional working capital to enable the client meet production demands
  2. Provides additional working capital with flexible security requirements
  3. Enables taking of  very large orders
  4. Cheaper than other borrowing facilities
  5. Can be used on a revolving basis

Qualifying Criteria:

  1. The facility and must be backed by an export LC or a confirmed export order.


Post import financing

A loan facility given to an importer (customer) to settle bills of exchange that have matured and the importer (customer) has not mobilized adequate resources to settle the same.


  1. The Bank allows its client an additional credit period which is un-disclosed to the seller and therefore allows to negotiate for better rates with the seller.
  2. Extended credit period.
  3. Lower lending rate (LIBOR plus a small margin).
  4. Used by importers to pay the LC Bills as they fall due instead of debiting the current account.
  5. It is ideal to use when Client account is not in credit balance as the fees charged are much lower that the O/D.

Qualifying Criteria:

  1. The facility is usually granted for bills drawn under a Usance Letter of Credit.


LPO Financing

KCB offer temporary loans to enable your business close out an order for supply of goods/ services from reputable companies.


  1. Finance of up to 70% of cost of items to be supplied
  2. Flexible security requirement
  3. Low interest rate
  4. Quick approval process
  5. Maximum period of 90 days depending on the term of the LPO

Qualifying Criteria:

  1. Hold a KCB Corporate account
  2. In procession of LPO from the government, parastatal organization or reputable company.
  3. Proforma invoice or quotation of items of purchase from the supplier


Guarantees/Bonds - (Bid/Perfomance/Transit) bonds

A written irrevocable undertaking is issued by the bank to pay the beneficiary on demand if customer has not fulfilled contractual obligations.


  1. Last longer
  2. Client obtains credit hence easing increase in liquidity
  3. Immediate compensation in case of default


Bills/Invoice discounting

An exporter obtains an advance from the bank thereby securing liquidity. The advance is based on the face value of the trade bill/invoice.


  1. Immediate access to the proceeds of sales
  2. Simple operational procedures
  3. Cheaper additional working capital with simplified security requirements


Commodity Financing

Available to producers who do not have access to Balance Sheet Lending.


  1. Immediate access to the proceeds of sales.
  2. Simple operational procedures.
  3. Cheaper additional working capital with simplified security requirements.
  4. Producer obtains liquidity by leveraging his inventories well before the goods are sold onto the market.

Qualifying Criteria

  1. Pre-requisite is to have all risk insurance and an assignment of proceeds.


Documentary Collections

Documentary collections are used to facilitate importation/exportation of goods between parties and collection of sale proceeds.


  1. Cheaper than LC’s in terms of  lower bank charges
  2. Easy to establish and operate  with shorter processing time- speedy payments
  3. If documents are against acceptance (DA), allows an importer a period of credit and at the same time assuring exporter of payments
  4. Drawee has the flexibility on settlement of bills (especially  for documents against acceptance)
  5. No impact on customer’s credit lines.


Structured Trade Finance (STF)

Is cross-border trade finance where the intention is to get repaid by the liquidation of a flow of commodities.


  1. Access to financing where no other financing is in place
  2. Financing facilities are tuned to the producers production and trade cycle
  3. Off balance  sheet operation/liquidity
  4. Allows producer to benefit from his track record in a reduced risk environment


Bill Purchase

Seller obtains financing and receives immediate funds in exchange for a sales document not drawn under a letter of credit.


  1. Do not have to get a letter of credit.
  2. Improvement of liquidity. The product can convert forward receivables into cash on demand so as to accelerate capital turnover and relieve the pressure of finance.
  3. Simplification of financing process.

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