Technology

New HF group e-platform offers smEs up to Sh10m in bidding bonds

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HF Group outgoing Group CEO Mr. Frank Ireri (lefts) hands over to the new Group Chief Executive Officer, Mr. Robert Kibaara (centre). The handover was witnessed by HF Group Chairman, Steve Mainda. PHOTO | DIANA NGILA | NMG

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Summary

  • A bid bond is issued by the supplier or service provider to the project owner as a guarantee that they will undertake the contract once awarded.
  • The bank recently launched HF Whizz money transfer and digital collections as part of its online banking offering.

Small and medium enterprises (SMEs) participating in public tenders can now get real-time unsecured bid bonds of up to Sh10 million via a web-based platform launched by HF Group. The listed lender has said the online-based solution dubbed HF Whizz Bid Bonds will ease applications for the bid bonds, increasing SMEs’ chances of winning tenders.

A bid bond is issued by the supplier or service provider to the project owner as a guarantee that they will undertake the contract once awarded. It 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 requirements.

“Bidders usually make their bid bond applications at the last minute; a peculiar behaviour observed in the Kenyan market. Most bidders will only apply for a bid bond after putting together all the other required documentation while several bidders will get to know about tenders at the eleventh hour,” said HF Group chief executive Robert Kibaara (pictured above).

“Traditionally, bid bond issuance in most of the FSI players is a time-consuming activity that requires brick-and-mortar engagement. This negatively affects the bidder’s response time. The HF Whizz eliminates the time limitations of physical interface with the bank and puts the control in the hands of the customer with its self-serve capability – with end to end digital registration, application and instant approval that is accessible 24/7,” he said.

The bank recently launched HF Whizz money transfer and digital collections as part of its online banking offering.