List of All Insurance Firms Approved as Tender Security Providers In Kenya (updated July 2020)

Bid securities should be from a reputable bank, insurance company (approved by PPRA) or in the form of cash or letter of credit. Here is the latest list of all approved tender/bid security providers as provided by PPRA.

August 18, 2020

Business Procurement

A Tender Security or Bid Bond is a written guarantee (providers are usually financial institutions) submitted to the individual/organization that has advertised for a service by a business that is willing to supply the service. The bid security is to ensure that upon receiving the tender, they shall take on the job and in the price terms that they had put in the tender.

In the event of a default by the service provider, the project owner can file a claim against the bid bond, which the guarantor – usually a bank or insurance firm – will pay in the amount of how much more he has to pay to contract the next-lowest bidder for the project or of the face value of the bid bond.

How tender securities work

Most public institutions in Kenya will require that you have a bid bond submitted in their tender advertisements. Potential bidders are required to submit bids that are valid for a period specified in the bidding documents.

Procuring entities have the option to demand bid security which can be a fixed sum or a percentage of the estimated value of the contract. This is specified in the bidding documents and can be up to 2% of the contract price.

Tender security is only valid if it extends at least thirty days after the expiry of the tender validity period. Thereafter, the bid securities are released to respective unsuccessful bidders once the contract is awarded to the successful bidder.

Any tender security that you seek to submit within your tender should be from a reputable bank (local or international), insurance company (approved by PPRA) or in the form of cash or letter of credit, in the amount specified in the bid document. Every time this is done, a receipt should be attached to the returned tender as proof of payment.

Here’s the full list as at July 2020

Below is the latest list of all insurance companies approved as tender/bid security providers as provided by PPRA, with links to their websites for further details: