By Chris Ojow
When the exporter or an importer is eligible and
in the good records of Export Credit Agency
(EAC), through export finance, the entrepreneurs
has a high chance of getting a financial boosts
from the Government of Kenya.
The same process is deeply practiced by
developing Nations Globally and Kenya has not
been left behind.
The Country has employed several officials
financial supports to bridge the current
infrastructure financing gap in different
departments like Water Dams, Energy and
The support may be initiated by various
Government Financial Agencies through
insurance, direct financing support to exporter
The export credit agency has rules and
normally guided within the regulated frame
work, under arrangements exporters competes
on basis of the quality of their goods and
ECA finances the export of goods and services
from origination to the intended beneficiaries in
Whereby they insure the products, offers
financial guarantees or simply loans and direct
loans and own up for any eventualities like the
political interferences resulting to non
payments under the export finance contracts.
Export Finance is a Government financing
system through it’s Agencies on specific
contracts between an exporter and an importer
on certain products available to suppliers and
buyers on long and midterm.
Where Export Credit Agency as a Major
Government agent and institution or any private
company offering services on behalf of the
government finances the export of goods.
Amount eligible for Export Credit Agency
usually depends on the contract structure,
exporting Country and the insurance.
The Country of origin becomes very vital during
the financing of exported goods and services.
With export finance, the interest rates are lower
than the existing market price and chances of
the Contract being extended longer is always
The Contracted Government agencies services
are always stable and reliable despite the risks
encountered when it comes to environmental
It also mitigates commercial and political risks,
on non payments, bankruptcy, political
instabilities and the commonly experienced
challenges Globally of currency in convertibility.