Bank Guarantees

Give customers, procuring entities and contract partners bank-backed assurance that specified tender, payment or performance obligations will be met. DTB issues Bank Guarantees including bid bonds, performance guarantees and advance payment guarantees in KES, USD, GBP and EUR, subject to credit vetting, security and approval.

Overview

A bank guarantee can help when a customer, procuring entity, project owner or contract counterparty will not proceed without independent assurance from a bank.

DTB issues guarantees on behalf of eligible customers after the same credit vetting and approval process used for other credit facilities. Common use cases include:

A business submitting a tender that requires bid security or a bid bond.
A contractor that has won a project and must provide a performance guarantee before work begins.
A supplier or contractor receiving an upfront payment where the customer requires an advance payment guarantee to protect the advance if the agreed obligations are not met.

The guarantee is issued in favour of the beneficiary using agreed wording, amount and validity linked to the underlying tender or contract. A bank guarantee does not replace the underlying commercial obligation; it provides a separate bank undertaking that can be called according to the guarantee terms.

DTB currently publishes guarantees in KES, USD, GBP and EUR. Approval, amount, security and pricing depend on the business, the requested guarantee, contract/tender terms and DTB's credit assessment. Share the required guarantee format and contract or tender documents with DTB before committing to final wording or delivery deadlines.

What You Need to Open an Account

The requirements are as follows:

The required bond or bank-guarantee format/wording from the beneficiary, procuring entity or contract.
Contract details for a performance guarantee.
Tender application details for a bid bond or tender guarantee.
Counter-guarantee, where applicable.
Advance payment details and the underlying contract for an advance payment guarantee.
DTB may request additional information on the beneficiary, amount, validity, claim period, project/tender and underlying commercial obligation.

National ID / passport / KRA PIN certificate of the borrower(s), original and copy.
Certificate of Registration for the sole proprietor or partnership, where applicable.
Business, banking, financial and security information requested by DTB for the guarantee facility assessment.

Certificate of Incorporation.
Company KRA PIN.
National ID / passport / KRA PIN certificate of directors, original and copy.
Certified Memorandum and Articles of Association, where applicable.
Certified Resolution authorising borrowing / guarantee facilities from DTB.
Audited accounts for the last three years together with the latest management accounts.
Bank statements for the last 12 months.
Latest annual returns and filing receipt / CR-12.
Business write-ups, plans and projections supporting the need for the facility.
Security details and any additional KYC, credit or contract documents requested by DTB.

Features

Access a comprehensive suite of banking services and tools:

Guarantee Types
- Bid Bonds / Tender Guarantees - support the bidding stage where the procuring entity requires tender security.
- Performance Guarantees / Performance Bonds - support post-award contractual performance obligations.
- Advance Payment Guarantees - support contracts where the beneficiary makes an advance payment and requires bank-backed protection under the guarantee terms.
- Other forms of guarantee commitment may be considered by DTB depending on the underlying obligation, required wording and Bank approval.
Currencies
- DTB currently publishes Bank Guarantees in KES, USD, GBP and EUR.
Current Pricing - Product Confirmation Required
- Current August 2026 DTB Tariff Guide: Bonds and guarantees - 0.50% per quarter or part thereof, minimum KES 5,000, chargeable upfront.
- Guarantees with 100% cash cover - 0.25% per quarter or part thereof, minimum KES 2,500, chargeable upfront.
- SWIFT charge for guarantees issued via SWIFT - KES 4,000 under the current tariff.
- The standalone Bank Guarantees page and current Trade Finance page still show a KES 2,500 minimum for standard issuing commission. DTB should reconcile this before publication.
- All charges are subject to applicable taxes and any other transaction-specific or correspondent-bank charges.

FAQs

A bank guarantee is an undertaking issued by a bank on behalf of its customer in favour of a beneficiary under stated terms. If the applicant fails to meet the obligation covered by the guarantee and a valid demand is made in accordance with the guarantee wording, the bank may be required to pay the beneficiary. DTB issues guarantees subject to credit vetting, security and approval.

A business may need a guarantee when a tender requires bid security, after winning a contract that requires performance security, or when a customer pays an advance and wants an advance payment guarantee. The contract or tender document normally specifies the type, amount, beneficiary, wording and validity required.

DTB currently publishes bid bonds, advance payment guarantees and performance guarantees among its guarantee commitments. Other guarantee structures may be considered depending on the contract, requested format, underlying obligation and DTB's approval.

A performance guarantee is commonly required after a contract is awarded to give the beneficiary bank-backed assurance against specified failures by the contractor or supplier to perform the contract. The required amount, wording, validity and claim terms come from the underlying contract or beneficiary requirements.

Yes. DTB lists performance guarantees among its Bank Guarantee products. Provide the required guarantee format and contract details so DTB can assess the amount, wording, validity, security and your credit application before issuance.

An advance payment guarantee is used where a customer or project owner pays a contractor or supplier money upfront and requires a bank guarantee covering the specified advance-payment obligation. The guarantee terms determine when and how a beneficiary may make a demand.

Yes. Advance payment guarantees are among the guarantee types DTB currently publishes. Share the contract, advance amount, required guarantee wording, beneficiary details and validity requirements with DTB for assessment before the customer releases the advance.

A bid bond is tender security submitted during the bidding stage. It gives the procuring entity assurance around specified bidder obligations under the tender, such as maintaining the bid or proceeding with the contract if awarded, according to the bond and tender terms.

Yes. DTB provides bid bonds through its Bank Guarantees proposition. DTB also has TenderFLEX, a separate digital product for eligible customers seeking unsecured bid bonds up to the product's published limit. Choose the route that matches the bond amount, security requirements, onboarding status and tender deadline.

The Bank Guarantees page covers the broader guarantee facility, including bid bonds, performance guarantees and advance payment guarantees, subject to normal credit vetting and security. TenderFLEX is a separate digital solution focused specifically on eligible unsecured bid bonds, with its own limit, onboarding and pricing terms.

For the guarantee itself, DTB requires the required bond/guarantee format and supporting tender or contract details. The Bank also requires business, identification, financial and credit documents based on the applicant's legal structure. A performance guarantee needs contract details; a bid bond needs tender details; a counter-guarantee may be required in relevant transactions.

Bank Guarantees are credit facilities and DTB assesses the applicant, transaction and security before approval. The tariff separately prices guarantees with 100% cash cover, confirming that fully cash-covered guarantees are one possible structure. The acceptable security for another guarantee depends on DTB's credit assessment.

A cash-covered guarantee is supported by cash held as security for the guarantee obligation. DTB's current tariff publishes a lower commission for guarantees with 100% cash cover than for standard bonds and guarantees. Confirm how the cash is held, released and treated during the guarantee validity before applying.

DTB's current August 2026 Tariff Guide lists standard bonds and guarantees at 0.50% per quarter or part thereof with a minimum KES 5,000, charged upfront. A 100% cash-covered guarantee is listed at 0.25% per quarter or part thereof with a minimum KES 2,500. Guarantees issued via SWIFT currently have a KES 4,000 SWIFT charge. Confirm the full cost for your amount, validity and structure before issuance.

DTB's standalone live page currently shows a KES 2,500 minimum for standard guarantee issuing commission, while the current August 2026 Tariff Guide lists KES 5,000. Product/Trade Finance should reconcile the discrepancy. Customers should request a current written quotation before applying or committing to contract costs.

It means the published commission is applied for each quarter of guarantee validity, and a period shorter than a full quarter may still count as part of a quarter under the tariff rules. Ask DTB to calculate the actual upfront commission for your guarantee amount and required validity before issuance.

DTB does not publish a single maximum amount for its general Bank Guarantees product. The approved amount depends on the underlying tender or contract, applicant's financial position, security, credit assessment and the wording/structure required by the beneficiary.

DTB currently publishes KES, USD, GBP and EUR for Bank Guarantees. The currency should normally match the tender, contract or underlying obligation, subject to DTB approval and any foreign-exchange or correspondent-bank requirements.

DTB's tariff covers local and international guarantees and the Trade Finance page publishes KES, USD, GBP and EUR. Whether a guarantee can be issued to a particular foreign beneficiary depends on the wording, jurisdiction, compliance checks, correspondent-bank arrangements and transaction structure. Share the beneficiary's required format with DTB early.

DTB does not publish a guaranteed turnaround time for general Bank Guarantees. Timing depends on account/facility onboarding, credit approval, security, completeness of documents, guarantee wording, beneficiary requirements and whether changes are required. For tenders or contract deadlines, start the application early.

The tender or contract normally specifies the required validity and sometimes an additional claim period. Do not choose the expiry date independently of the beneficiary's requirements. Give DTB the tender/contract wording so the guarantee can be structured for the required period.

Guarantees may be amended or extended where the parties, facility approval and guarantee terms allow. Because changes can affect the Bank's exposure, validity and commission, contact DTB before the current expiry date and provide the beneficiary's amendment or extension requirements.

Cancellation depends on the wording and beneficiary requirements. A guarantee cannot always be cancelled simply because the applicant asks; DTB may require the original instrument, beneficiary release or other evidence before its obligation is discharged. Contact DTB if the contract ends early or the beneficiary agrees to release the guarantee.

DTB will assess the demand against the terms of the guarantee and applicable requirements. If the demand is valid under the guarantee, the Bank may have to honour it and then recover the amount from the applicant under the facility/security arrangements. Businesses should understand the exact demand conditions before accepting the guarantee wording.

A letter of credit is commonly a primary payment instrument in trade, with payment linked to specified documents. A bank guarantee generally supports performance or another contractual obligation and may be called if the applicant fails to meet the guarantee terms. Share the customer or supplier requirement with DTB if you are unsure which instrument is appropriate.

A bid bond applies at the tender stage and supports obligations linked to the bid. A performance bond is normally required after contract award and supports the contractor's or supplier's performance obligations. Winning a tender may therefore mean the bid bond is later replaced by a performance guarantee specified in the contract.

The tender or contract determines what form of security the beneficiary will accept. Some procuring entities accept guarantees from specified banks or regulated insurers; others prescribe exact wording and issuer requirements. Check the tender document first and make sure DTB's guarantee is an acceptable form before applying.

Yes. DTB publishes Trade Finance requirements for individuals, sole proprietors, partnerships and companies, so the product is not limited to large corporates. Approval still depends on the tender/contract, financial information, security and DTB's credit assessment.

Compare whether the issuer is acceptable to the beneficiary, guarantee types supported, collateral/security requirements, commission and minimum charges, SWIFT or other fees, currencies, turnaround expectations, ability to issue the exact required wording, extension/amendment support and experience with tenders/contracts. DTB offers bid bonds, performance and advance-payment guarantees in multiple currencies, subject to approval.