Everything You Need to Know About LC (Letter of Credit)

When Importing Pickup Trucks to Kenya

If you’re looking to import pickup trucks in Kenya, you’ve come to the right place! The process can seem a bit daunting with all the paperwork and regulations involved, but understanding how a Letter of Credit (LC) works can make everything smoother. Whether you're a seasoned importer or just starting out, knowing the ins and outs of financing your import is crucial. Let's dive into what you need to know about imported pickup trucks to Kenya, starting with the basics of LCs!

What Is an LC (Letter of Credit)?

Let’s start simple. An LC, or Letter of Credit, is a formal document issued by your bank that guarantees payment to a supplier, as long as the supplier meets specific terms, like delivering your dream Toyota Hilux or Ford F‑150 to the Mombasa port. So, why do people use LCs, especially when buying imported pickup trucks in Kenya? Because international business involves trust, and trust isn’t always easy across borders. An LC helps both sides sleep better at night—importers and exporters alike.

What Does LC Mean for Importing Pickup Trucks to Kenya?

If you're planning to import a Ford F‑150 or a Toyota Hilux, you're probably dealing with a car dealer overseas. That means you’re sending thousands of dollars abroad with hopes your truck arrives in good shape. Sound risky? It can be—unless you use an LC. Using a Letter of Credit offers:
  • Protection for both parties
  • Clear expectations
  • Documented terms
  • Verified shipping and inspection procedures
It’s not just for big companies—individual importers in Kenya are using LCs more than ever when buying imported pickup trucks in Kenya.

For the Importer (You in Kenya)

So how does it work for you? Say you want to import a Toyota Hilux from Japan or a Ford F‑150 from the U.S. Here’s your step-by-step guide:

1. Find Your Supplier

You identify a reliable exporter or car dealer abroad offering imported pickup trucks in Kenya.

2. Negotiate the Deal

Agree on price, model (maybe a double-cab Toyota Hilux or a 2023 Ford F‑150), shipping terms, and delivery timeframe.

3. Apply for an LC at Your Local Bank

Your bank (like KCB, Equity, Family Bank) will need:
  • Proforma invoice
  • Your ID and KRA PIN
  • Import Declaration Form (IDF)
  • Any additional import permits

4. Pay the Required Margin

Typically, 10–100% of the invoice amount, depending on the bank. They’ll issue the LC and send it to the supplier’s bank.

5. Wait for Shipment and Docs

Once the vehicle is shipped, the exporter submits the required documents, and your bank verifies them before payment is made.

6. Pick Up Your Pickup

After verification, you'll receive the shipping documents. Use them to clear customs and collect your new Ford F-150 or Toyota Hilux. Pro Tip: Always ensure the LC terms exactly match the sales agreement to avoid document rejection delays.

For the Exporter (Car Dealer or Supplier Abroad)

Now, from the supplier’s side, it’s about trust and assurance. The exporter is assured of payment as long as they:
  • Ship the imported pickup truck to Kenya within the agreed timeline
  • Provide all the correct documents
  • Meet inspection and quality standards
No one wants to ship a Toyota Hilux worth millions of shillings and not get paid. The LC minimizes that risk. They also often use a confirming bank (especially in Europe, the US, or Japan) for extra assurance.

Documents Required Under an LC for Pickup Truck Import

Let’s break down the key paperwork that typically needs to be submitted by the exporter to ensure compliance with the LC terms:
  • Commercial Invoice – Shows vehicle specs, price, and terms.
  • Bill of Lading (B/L) – Shipping details.
  • Packing List – Describes the truck, accessories, and extras.
  • Certificate of Origin – Shows where the truck was made.
  • Inspection Certificate – Usually done by QISJ, JEVIC, or SGS.
  • Insurance Certificate – Covers the vehicle in transit.
  • Import Declaration Form (IDF) – Mandatory for all imports in Kenya.
Failure to submit even one required document in perfect form can delay or cancel payment. That's how strict LCs are, which is why they’re reliable.

LC Process in Simple Steps

Let’s recap the LC process in a straightforward way:
  • Deal is Agreed – You settle on a price and model (maybe a brand-new Ford F-150)
  • LC Application – You apply for a Letter of Credit from your Kenyan bank
  • LC Issued – Your bank sends the LC to the supplier’s bank
  • Vehicle Shipped – Supplier ships the Toyota Hilux or other pickup and submits documents
  • Document Check – Banks verify every document carefully
  • Payment Released – If all checks out, the supplier gets paid
  • Pickup Clearance – You use documents to clear customs and register the truck in Kenya
The beauty of this process? It’s secure, structured, and reliable for both parties.

Conclusion

Whether you’re eyeing a rugged Toyota Hilux for off-road jobs or a sleek Ford F‑150 for heavy-duty work, importing it to Kenya is easier and safer with a Letter of Credit. In today’s global vehicle market, you don’t want to take chances. The LC ensures you receive exactly what you ordered—no scams, no shortcuts. So, go ahead, start the process with your bank and bring that dream truck home.