HF Unveils Instant Online Bid Bonds of up to KSh 10 Million Unsecured

NAIROBI… SMEs participating in government tenders can now get real-time unsecured bid bonds of up to Kes 10 million via a web-based portal launched by HF Group. The listed lender has today said the launch of its online-based solution dubbed HFCB Whizz Bid Bonds is designed to empower SMEs with 24/7 access and seamless experience when applying for bid bonds, thereby increasing their chances of winning tenders.

A bid bond is part of the documentation required when one is submitting a bid. HF will guarantee the project owner or contracting authority that, in the event the bidder wins the tender, they will meet the obligations of the contract under the terms at which they had bid. A bid bond is subject to full or partial forfeiture if the winning bidder fails to execute the contract or provide the required performance bonds.

“Bidders usually make their bid bond applications at the last minute; a peculiar behavior observed in the Kenyan market. Most bidders will only apply for a bid bond after putting together all the other required documentation, while a number of bidders will get to know about tenders at the eleventh hour,” said HF Group Chief Executive Officer, Robert Kibaara.

HFCB Whizz Bid Bonds gives customers pre-approved unsecured limits of up to Kes 10 Million and the ability to self-serve. It eliminates the hassle of the offer letter process.

“Traditionally, bid bond issuance in most of the FSI players is a time-consuming activity that requires brick and mortar engagement. This negatively affects bidder’s response time. The HFCB Whizz Bid Bonds solution allows customers to self-serve with end-to-end digital registration and application without having to interface with bank employees. We have also eliminated the time constraint as the platform can be accessed on the go, 24/7, putting full control in the hands of the customer,” said Kibaara.

HFCB Whizz Bid Bonds is the latest addition to HF’s digital banking offering. The Bank recently launched HFCB Whizz Money Transfer and HFCB Whizz Digital Collections.

“The SME sector is a key area of focus for the bank, and we shall continue to roll out comprehensive solutions for the players in this space,” Kibaara said.