For Kenya, when an exporter has concluded a commercial export contract with a Kenyan importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.
The Kenyan importer will ask the Kenyan bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.
For Kenya, the exporter must choose a confirming bank that has in its network of correspondents the Kenyan bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.
A letter of credit issued in Kenya is usually confirmed by a big number of banks which are prepared to take the risks of Kenyan banks and make sure the beneficiary of the LC or exporter obtain his payment.
LIST OF KENYAN BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS
Kenya Commercial Bank
Cooperative Bank of Kenya
National Bank of Kenya
Commercial Bank of Africa
Equity Bank Kenya
Housing Finance Bank
CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH KENYAN BANKS
Banks which are confirm the letters of credit issued in Kenya by Kenyan banks are: (please contact us to obtain the list or to be listed as confirming bank).
KENYA: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A KENYAN BANK
Confirmation charges and fees for letters of credit issued through Kenyan banks can be obtained on demand by emailing: email@example.com.
TRADEFINANCE.AFRICA COUNTRIES OF EXPERTISE