Bid bonds are debt secured by firms from banks, and are a requirement during the tendering process as financial security during the selection process by the tendering authority.
It guarantees institutions of financial compensation from the bank should the bidder fail to honour the terms of its contract.
NIC Ventures General Manager James Muigai said the application dubbed “BeeDee’ will reduce cases where individual and Small and Medium Enterprises (SMEs) are disqualified for delayed or late submission of bid bonds.
NIC Ventures, a subsidiary of NIC Group #ticker:NIC , has launched a mobile-based application where Kenyans can access bid bonds that will provide funding for tenders awarded by government and private entities.
Bid bonds are debt secured by firms from banks, and are a requirement during the tendering process as financial security during the selection process by the tendering authority.
It guarantees institutions of financial compensation from the bank should the bidder fail to honour the terms of its contract.
NIC Ventures General Manager James Muigai said the application dubbed “BeeDee’ will reduce cases where individual and Small and Medium Enterprises (SMEs) are disqualified for delayed or late submission of bid bonds. It will also cut delays occasioned by unprocessed payments.
The platform launched in partnership with private equity funder Masterpiece Fusion will link NIC Ventures to all banks in the country.
It also includes a one-off registration that eliminates the need for an individual to belong to a bank or a network to access bid bonds.
“The launch of BeeDee endeavours to offer end-to-end customer intuitive online system for bid bonds… With this service, no one should be disqualified for delayed or late submission of bid bonds” Mr Muigai said yesterday.
The online registration that is billed to take minutes simultaneously runs a detail verification process including ID, phone number, company ownership among others to ensure instant approvals.
Procuring entities covered under the “BeeDee” portal include all banks, insurance companies, state parastatals, non-government organisations and selected private institutions that remained undisclosed.
SMEs and individuals will be required to provide details including tenure duration, the procuring entity, the bid amount and personal details like mobile number and email addresses.
BeeDee is open to both NIC Bank customers and non-customers and will ease the delays experienced in the manual bidding processes as the firm seeks to ease access to credit to thousands of Kenyans seeking funds for tenders in both public and private sector.
NIC Ventures became a subsidiary of NIC Bank Group after Central Bank of Kenya and shareholders approved a restructuring that came to effect in September 2017.
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