Kingdom Bank launch online bid bond platform, KBID app

KBID app, is the lender’s online real-time bid bond processing platform that is meant to provide an effective turnaround that makes it convenient for customers to apply for bid bonds.

“We only need a certificate of registration, the current CR1, and the companies pin for non-customers of Kingdom bank and would want to come on board,” said Moses Kimemia, Head of Business Development.

Additionally, he said that they have a list of 700 companies that they are supposed to do tenders with through their KBID app which is friendly and very simple to use.

Small medium enterprises (SMEs) participating in government and private tenders can now get real-time unsecured bid bonds of up to Sh10 million.

Applicants with more than three years of experience can now get to enjoy 100 per cent tangible security of performance bond guarantees and those with less than three years of experience can now get a 20 per cent cash cover and 80 per cent conventional security.

A bid bond is a guarantee by the Kingdom Bank to project owners or the contracting authority that has the ability to complete work once selected.

In the event the bidder wins the tender, they will meet the obligations of the contract under the terms at which they had the bid

The tenure of the bid bond provided is a maximum of 180-days with a performance bond of 12 months on a renewable basis.

On the eligibility of the bid bond, the applicant must have an account with Kingdom Bank, provide the tender advert, a copy of the performance bond if not issued on the bank, the counterparty must be within the bank-approved entity, advance payment guarantee, letters of credit, documentary collection and clean collection letter

Any tenders that one applies in Kenya would require one to provide some form of security and this is the document known as the bid bond.

The forms are accessed in any of the Kingdom Bank or Jamii bora bank.