A Bond is A written legal contract executed under seal whereby the person or persons entering into it bind themselves to pay to some other person or body a specified sum of money, known as Penalty if any of the conditions of the bond are not performed.
Bonds provide a guarantee that projects will be completed as expected – even if the contractor fails.
Bonds are an inexpensive way to protect the public interest and assure contracts are completed on time, for the agreed-upon price.
Type of Bonds
This tender bond (or bid bond) is for use where a Procuring entity is obtaining tenders for a contract and requires a bond as security against the risk of the successful bidder failing to enter into the contract. It gives the beneficiary the right to call the bond on demand within a specified period and for a maximum specified amount.
Advance Payment Bond
This is a down payment given to the principal by the obligee to ensure that he will perform his obligation as mentioned in the contract. An advance payment bond guarantees the obligee to complete his contract as per the agreement covering loss only when the principal cannot be able to refund the amount given by the obligee.
A performance bond is a surety bond issued by an insurance company or a bank to guarantee the satisfactory completion of a project by a principal. If the principal fails to perform according to the specifications laid out by the contract (most often due to the bankruptcy of the principal) the client (obligee) is guaranteed compensation for any monetary loss up to the amount of the performance bond.
Work Permits/Security Bond
This is a legal authorization that allows a person to take employment in instances where a person is permitted to work in a country where one does not hold citizenship.
The first surety should be the firm employing such a person and the second surety is the Ins Co. It is the responsibility of the first surety to write to immigration when such persons leave the organization for the bond to be canceled. It is renewable in Kenya every two years.
This is a guarantee from a surety to the Government that the Principal will faithfully abide by all laws and regulations governing the payment of Customs revenue together with the proper carrying on of business in dutiable articles. There are two classes of Bonds namely;
Particular bonds - These are executed to cover one specific transaction.
General Bonds - These are executed to cover several transactions over an unspecified period.
The validity of Customs Bonds
Customs bonds do not expire. They are valid from the time of proper execution up to the time of bond discharge by the parties to the bond. Read Section 108 of the EAC Customs mgt Act and 109 on bond
Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalization costs, cost of medicines or doctor consultation fees.
Burial insurance, also called final expense or funeral insurance, is a whole life policy that helps cover the costs of an individual’s final arrangements. It pays for expenses such as the memorial service, casket or urn, and burial or cremation.
Travel insurance is a type of insurance that covers the costs and losses associated with traveling. It is useful protection for those traveling domestically or abroad.
A critical illness plan is a policy that pays the insured a lump sum following the diagnosis of an illness covered under the plan. Critical-illness plans often cover diseases like cancer, organ transplant, heart attack, stroke, renal failure, and paralysis, among others. There is no coverage if you’re diagnosed with a disease that isn’t on the specific list for your plan, and the list of covered illnesses varies from one plan to another.
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