|
A Guarantee/Bond is a written undertaking issued by a The Co-operative Bank of Kenya Limited on behalf of a customer/overseas Bank. The undertaking guarantees that should the principal not comply with his obligations under the contract leading to a claim under the Guarantee/Bond, the co-operative Bank of Kenya shall financially recompense the beneficiary. The beneficiary is indemnified for a stated amount.
Types Of Guarantees:
Bid/Tender Bonds:- Issued to support tenders for contracts made by contractors. The tenderer is compensated amount specified if contractor is awarded but fails to take up the contract.
Performance Bond - Issued to replace the Bid Bond once the contract has been awarded. This is a guarantee that the contractor will abide and perform as per the terms of the contract.
Advance Payment Guarantee:- Used when the principal asks for a sum of money to be paid in advance of the works/service. Beneficiary is therefore guaranteed that these funds will be repaid if non delivery of goods or default of contract takes place.
Retention Bonds:- Beneficiary withholds a certain amount of money until works/services have been completed satisfactorily.
Customs Bond:- Issued to enable importer bring goods into the country before paying the import duty to the customs authority (Kenya Revenue Authority).
Shipping Guarantees/Delivery:- The Bank issues Orders to enable the importer effect clearance of goods with the shipping company in the event that the original bill of lading/ airway bill is not received by the bank before the merchandise arrive at the port/airport of destination.
Post Import Finance – The Co-operative Bank of Kenya Limited enables an importer of goods to defer payment of the goods to his supplier under a Letter of Credit, until goods imported have been sold and proceeds of the sale have been received.
Business Advisory Services – The Co-operative Bank of Kenya Limited has experienced trade professionals with an in depth knowledge of international trade practices who are always at hand to assist, guide and offer products, structures and solutions, best suited to meet customer needs. |