A Letter of Credit is issued by the Bank at the request of the customer (applicant/importer) where the Bank undertakes to pay the beneficiary/exporter for goods and services, provided the beneficiary presents all documents called for and meets all other terms and conditions set out in the LCS.
The Bank also advises and confirms if requested Export Letters of Credit for customers as well as non-customers
Shari’ah contract: Wakala.
Target Audience
- Customers who are importers.
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.
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.
