Overdraft Facilities

Access short-term working capital through a DTB overdraft facility in Kenya to manage day-to-day cash-flow needs, including approved supplier payments, stock purchases and operating expenses. The facility is available up to an approved limit, renewable annually by arrangement and legally repayable on demand, subject to credit appraisal and the bank’s discretion.

Overview

A DTB overdraft facility provides approved customers with flexible access to working-capital finance when business income and expenses do not fall at the same time. It can help cover temporary cash-flow gaps and approved day-to-day operating needs while customer payments are pending. The maximum limit depends on the borrower’s repayment capacity and credit appraisal. The facility is available in local currency (LCY) or foreign currency (FCY), is renewable annually by arrangement and is legally repayable on demand. The account must remain actively transacted, and interest must be serviced monthly at the prevailing market rate..

What You Need to Open an Account

The requirements are as follows:

Original and copy of the National ID card or passport and KRA PIN certificate for each borrower.
Certificate of registration for a sole proprietor or partnership.
Latest bank statements for the last six months.
Copies of loan offer letters (LOFs) and the current account status for loans or other facilities held with other banks, where applicable.
A written business case, plan or cash-flow projection explaining the working-capital need and demonstrating repayment capacity.
Fixed-deposit security: details of the fixed deposit receipt (FDR), where applicable.
Property security: copy of the title, valuation report, property details and guarantor details, where applicable.
Other approved security: supporting details for security such as a chattel mortgage or Treasury bills, where applicable.

Features

Access a comprehensive suite of banking services and tools:

Purpose - working-capital financing for approved day-to-day operating needs.
Maximum credit limit - determined by the borrower’s repayment capacity and credit appraisal.
Repayment period - legally repayable on demand and renewable annually by arrangement. The account must be actively transacted, and interest is serviced monthly.
Interest rate - prevailing market rate, subject to the approved facility.
Fees - 2% commitment fee.
Currency - local currency (LCY) or foreign currency (FCY).

FAQs

Clear answers to common questions about business overdrafts, working-capital needs, eligibility, security, costs, repayment and the DTB application process.

A bank overdraft is a short-term credit facility that allows an approved customer to transact beyond the available balance in an account, up to an agreed limit. It is generally used to manage temporary cash-flow gaps and day-to-day working-capital needs rather than long-term asset purchases.

DTB assesses the applicant’s working-capital need, repayment capacity, financial information and proposed security before approving a limit. The account must be actively transacted, interest is serviced monthly, and the facility is legally repayable on demand and renewable annually by arrangement.

Individuals, sole proprietors and partnerships may apply, subject to DTB credit appraisal. Applicants must provide the required identification, financial and registration documents, explain the working-capital need and demonstrate repayment capacity.

Banks that offer working-capital finance may provide business overdraft facilities to eligible customers. DTB offers an overdraft facility in Kenya for approved short-term cash-flow and day-to-day capital needs. Select “Get In Touch” to discuss eligibility and the application process.

An overdraft can support approved short-term operating needs such as paying suppliers, purchasing stock or meeting other day-to-day business expenses when cash inflows are delayed. It should not be treated as permanent funding or used for a long-term purchase without assessing whether a term loan is more suitable.

Yes. A working-capital overdraft may help an eligible business cover a temporary cash-flow gap while waiting for customer payments, provided the need is supported by the application information and the facility is used within the approved terms and limit.

There is no single published limit for every applicant. The maximum credit limit depends on the borrower’s repayment capacity, account activity, financial information, working-capital need, proposed security and DTB credit appraisal.

Common requirements include identification and KRA PIN documents, business registration documents where applicable, six months of bank statements, details of existing facilities and a written business case or cash-flow projection. Security documents are also required depending on the asset offered.

DTB may consider security such as a fixed deposit, property, a chattel mortgage, Treasury bills or another approved form of security. Acceptance is subject to ownership verification, valuation where required and the bank’s credit and security assessment.

Yes. Sole proprietors and partnerships may apply, subject to credit appraisal. They should provide registration documents, identification and KRA PIN documents, bank statements, details of existing borrowing, the working-capital purpose and relevant security information.

The product page states that interest is charged at the prevailing market rate and must be serviced monthly. It also lists a 2% commitment fee. Review the approved facility letter and the current DTB tariff guide for the exact rate, fee basis and any other applicable charges before accepting the facility.

The calculation basis should be confirmed in the approved DTB facility letter. The current product page states that interest is at the prevailing market rate and is serviced monthly, but it does not specify the calculation method. Ask DTB for a full cost illustration before accepting the facility.

Repayable on demand means the bank may require the outstanding amount to be repaid in line with the facility terms. The DTB overdraft may also be recalled at the bank’s discretion, so customers should manage the limit carefully and maintain sufficient cash flow to reduce or clear the balance when required.

The facility is renewable annually by arrangement, but renewal is not guaranteed. DTB may review account conduct, repayment performance, financial information, working-capital need, security and other credit considerations before approving a renewal.

An overdraft is flexible short-term finance used through an account to cover temporary working-capital gaps and is repayable on demand. A term loan provides an approved amount with scheduled repayments over a defined period and is generally more suitable for planned asset purchases, construction or longer-term business investment.

Compare the approved limit, total cost, interest basis, fees, security requirements, annual review terms, currency options and the bank’s account-service requirements. DTB’s overdraft may suit eligible customers seeking LCY or FCY working-capital finance with an annually renewable limit, subject to appraisal and on-demand repayment terms.