Bonds (Bid, Performance & Advance Payment)
Financial-guarantee bonds for government tenders, construction contracts, supply agreements, and customs obligations.
Insurance bonds are financial guarantees provided by an insurer to a beneficiary (typically a public-sector buyer or contracting authority) on behalf of a principal (a contractor or supplier). If the principal fails to meet the underlying obligation — bidding, performing, repaying an advance, or paying customs — the insurer pays the beneficiary up to the bond limit, then pursues recovery from the principal. Bonds free up the contractor's working capital that would otherwise be tied up in cash deposits or bank guarantees.
Vike issues bonds across the full Kenyan tender ecosystem — government tenders, county procurements, parastatal contracts, NGO supply agreements, KRA customs bonds, and private sector contract bonds. Most bonds we issue are in place within 48 hours of complete application; complex performance bonds (above KES 50M) typically take 5–7 working days with credit underwriting.
What It Covers
Bid bonds — guarantees the bidder will sign the contract if awarded
Performance bonds — guarantees the contractor will perform per the contract
Advance payment bonds — guarantees repayment of advances if the contract fails
Retention bonds — releases retention monies in exchange for a bond guarantee
Customs bonds — guarantees payment of duties and taxes for KRA
Supply bonds — guarantees delivery under supply agreements
Court bonds — Bankruptcy, court-administered, and probate bonds
Counter-guarantees against international tenders (with reinsurance backing)
Who It's For
Contractors bidding for public-sector and parastatal tenders
Suppliers under government and corporate supply agreements
Importers needing KRA customs and excise bonds
Construction and engineering firms requiring contract bonds
Anyone needing to free up cash that would otherwise back a bank guarantee
Types We Cover
Each profile is rated and underwritten differently. Talk to us so we can match your specific situation.
Bid Bond
Typically 2% of the tender value, validity period to the tender's award decision (usually 90–180 days). Forfeitable if the bidder fails to sign the contract on award. Speed is critical — most bid bonds are needed within 48 hours.
Performance Bond
Typically 10% of the contract value, validity to contract completion plus retention period. Replaces or supplements cash retention and is the largest bond category by value.
Advance Payment Bond
Equal to the amount of advance paid by the buyer. Reduces as the contractor delivers and the advance is amortised against deliveries. Common in supply and construction contracts with mobilisation payments.
Customs / KRA Bond
Guarantees the eventual payment of duties and taxes on goods imported under bond — typically used for raw materials destined for export, warehoused goods, or transit cargo. Standard product for Kenyan importers.
Court / Statutory Bonds
Specialist bonds required by court orders — administration of estates, bankruptcy, customs disputes, etc. Issued on individual review with appropriate counter-indemnities from the principal.
Real-World Scenarios
Bidding for a county government supply tender
A KES 80M tender requires a 2% bid bond — KES 1.6M. Vike issues the bond within 48 hours against the supplier's signed counter-indemnity. The supplier preserves working capital for the contract execution itself rather than tying it up at the bank.
Performance bond on a road construction contract
A KES 600M civil works contract requires a 10% performance bond — KES 60M. Vike underwrites the contractor's financial standing, technical capability, and project plan, then issues the bond. Premium is typically 1.5–4% per annum of the bond value.
KRA customs bond for an exporter
An export-focused manufacturer needs a KES 30M customs bond covering imported raw materials destined for re-export as finished goods. Vike places the bond and handles KRA filings; the importer's working capital is preserved for production.
Optional Benefits & Add-ons
Multi-bond facility for active contractors (one master line)
Cross-border bond capacity into EAC and COMESA
Counter-indemnity structuring with personal and corporate guarantors
Same-day issuance for routine bid bonds (under defined values)
Specialist court bond capacity through reinsurance
Integration with bank facilities for combined bonding and credit
Availability varies by underwriter. Our advisors will confirm what is available on your chosen policy.
Frequently Asked Questions
You May Also Need
Quotes from Kenya's leading underwriters
Ready to get covered?
Our advisors will compare quotes and find the best fit for you — at no extra cost.
Get a Bond Quote
