Letter of Credit for Importers in Kenya

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Opening an Import LC in Kenya: Requirements, Fees and Confirmation

A letter of credit for importers in Kenya is issued by a Kenyan bank on your behalf, promising your overseas supplier payment once compliant shipping documents arrive. It lets you buy from China, India, the UAE or Europe without paying in advance, while the supplier gets a bank's undertaking instead of yours.

Conditions are supportive. The Central Bank of Kenya reported reserves equal to about 6 months of import cover and a stable shilling in July 2026, according to People Daily.

Gantry cranes at the Port of Mombasa container terminal, Kenya's main import gateway

What Kenyan banks require

KCB's published LC requirements are a typical example. Banks ask for an LC facility or cash margin, the bank's application form, the supplier's proforma invoice, an Import Declaration Form where applicable, and marine insurance for sea shipments, per KCB.

No credit line? Banks may still issue against full cash margin. See your options when a bank wants 100% cash collateral.

What an import LC costs

Drag to see an illustrative issuance commission based on KCB's published 2% one-off rate, with a minimum of KES 5,000. Your bank's tariff, SWIFT charges and any confirmation fee will differ.

Illustrative issuance commission USD 2,000

Confirmation. Suppliers that do not know your issuing bank often require confirmation by an international bank, which adds a separate fee. See LC confirmation services. For deferred payment, see usance LC financing.

What Financely delivers

We negotiate LC terms with your supplier, prepare the application and credit file for your Kenyan bank, and arrange confirmation where the supplier requires it. Deliverables include LC drafting aligned with UCP 600, a document checklist matched to KRA clearance at Mombasa, an issuing and confirming bank shortlist and support through to MT700 issuance. See our documentary letter of credit service.

It suits Kenyan manufacturers, distributors and contractors importing machinery, raw materials, vehicles or energy equipment. Importing into West Africa instead? See import LCs for Nigeria.

Get Your Kenya Import LC Issued

Send us the supplier proforma, the order value and your bank. We will scope the work and send a fixed quote.

Frequently asked questions

Which banks issue letters of credit in Kenya?

Most commercial banks, including KCB, Equity, Stanbic, NCBA, Absa Kenya and I&M, issue import LCs, subject to a facility or cash margin.

Do I need a credit line to open an LC in Kenya?

Not always. Banks can issue against full cash margin, though a facility frees your working capital.

Will my supplier accept an LC from a Kenyan bank?

Many will. Others require confirmation by an international bank, which we arrange where needed.

General information only, not legal, tax or customs advice. Financely is an advisory and arranging firm, not a bank, lender or broker-dealer. Fees shown are illustrative only. LC issuance is subject to bank approval, KYC, documentation and conditions, and no outcome or timeline is guaranteed. Port image by MEAACT Photo / Stuart Price, public domain, via Wikimedia Commons.

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