The Co-operative Bank of Kenya (CBK) is offering a new Import Duty Finance product to add to the range of services already offered by the bank, including letters of credit (L/Cs).

The new product is aimed at micro-, small- and medium-sized enterprises (MSMEs) across Kenya.

Product design

Import Duty Finance is designed to provide importers with seamless cargo clearing and transportation processing from port of origin to final destination.

The bank says MSMEs can use the service to ensure prompt payment of duty and other related costs, thus ensuring timely delivery and avoiding high storage and demurrage charges.

Market research

Speaking at the product launch, head of CBK's business banking, Moses Gitau, said the bank had engaged with MSMEs over the last two years to find out what kind of products and services they required.

He added that the bank was refining its offer to "target specific groups of MSMEs such as [those in] the import and export industry".

The new product adds to a range of services already offered by the bank, which include L/Cs, bid and tender bonds, performance guarantee bonds, invoice discounting and local purchase order financing.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.