Smartphone Loan Product Terms and Conditions

THIS AGREEMENT is a financial services and end-user loan agreement between you (“you” or “borrower”) and PesaKit Limited ( “lender”), a company organized and existing under the laws of the Republic of Kenya (“PesaKit”) for the working capital loan products offered to a qualified borrower through the software (PesaKit App”)

These Terms and Conditions and any amendments or variations thereto take effect on their date of publication.


Definition of terms and Interpretations 

 “Agreement” means this Agreement;

“Account” means your PesaKit App account;

“Business Day” means a day other than a Saturday, Sunday or national or public holiday in the Republic of Kenya;

Credentials” means your personal credentials used to access the App and operate your Account;

“Credit Reference Bureau” means a duly incorporated company providing credit reference services and licensed under the laws of Kenya;

“Transactions Fees” mean any charges or fees charged and payable for the use of the PesaKit Services as published by PesaKit on the PesaKit website and PesaKit App or by any other means at the sole discretion of PesaKit. PesaKit retains the rights to change or modify the Transaction Fees at its sole discretion.

“PesaKit” means PesaKit Limited, a limited liability company incorporated under the Companies Act 2015 in the republic of Kenya

“Loan lifecycle” – All activities from when the borrower applies for the loan to the time the loan is repaid in full. 

 “Repayment” means each payment by you under a smartphone loan contract which shall comprise the deposit and any fees to PesaKit, as well as any amount otherwise due and payable by you under the smartphone loan contract

“Request” means any instruction received by PesaKit from you through the PesaKit App and upon which PesaKit is authorized to act

 “User” or “You” means the user of PesaKit Services with a registered account and using PesaKit Services

“We”, “Our” or “Us” means PesaKit and includes the successors and assignees of PesaKit

Headings have been inserted for convenience only and shall not be taken into consideration in the interpretation of this Agreement.

Acceptance of the Product Terms

You must carefully read and understand the product Terms and Conditions set out in this Agreement before applying for the smartphone loan product which will govern your loan lifecycle

You will be deemed to execute this Agreement upon clicking the “Accept” option on the PesaKit App loan facility asking you to confirm that you have read, understood and agreed to abide by this Agreement. If you do not agree with this Agreement, please click the “Decline” option in our System. By pressing the “Decline” button, you will not be able to access the PesaKit Loan Product.

If you choose to agree;

  1. You hereby irrevocably authorise PesaKit, in its sole discretion, to act on your smartphone loan requests subject to you agreeing to the Terms of the Smartphone Loans. PesaKit may however refuse to carry out such requests in its sole and absolute discretion.
  2. You agree to release from and indemnify PesaKit against all claims, damages, losses, expenses, and costs arising in consequence of, or in any way related to PesaKit having acted on, in whole or any part, your requests.
  3. You agree that once you have agreed to this Product Terms of Agreement, you agree to the Terms of the smartphone loan and the Repayment for the entire Loan shall be made in monthly installments on a specific date in a manner to be specified by the Lender on approval of your loan application. 
  4. You agree that In the event of any conflict between any terms of request received by PesaKit from you and the Product Terms of Agreement, the Product Terms Agreement shall prevail.

Qualification Criteria

The qualification for the loan will be determined, in its sole discretion, by PesaKit. PesaKit, in making this determination, will create a Credit Score after an assessment of your information including but not limited to your Mpesa Statements and your credit information from the Credit Reference Bureaus, your use of the services offered by PesaKit.

Baseline Conditions to satisfy include:

  1. 100% profile completeness
  2. Transactions in the PesaKit App (To be determined by PesaKit). This also sets the Loan Limit which is also determined by PesaKit
  3. CRB Score
  4. Passing the information verification process for the information provided by the borrower (“You”) to the Lender (“PesaKit”)

 Smartphone Loan Approval

Upon passing the qualification criteria and applying for the loan as determined by PesaKit, PesaKit will approve the Smartphone Loan in ONE DAY

 Smartphone Loan Repayment

The Repayment for the entire Loan shall be made within two months in fortnightly installments on a specific date in a manner to be specified by the Lender on approval of your loan application. The statement of the Lender as to the monthly rates and penalties payable shall, in the absence of manifest error, be conclusive.

Late Repayment

If you fail to make the Smartphone loan payments at the due date for such payment, you agree to PesaKit applying late fees on such payment at the rate indicated on the product.

Event of Default

Event of Default An “Event of Default” occurs when you fail to pay any sum payable for a Loan granted under these Terms and Conditions on the repayment dates to be communicated by the Lender or to failure to pay the installments when due or any indebtedness or failure to perform or observe your obligations under this Agreement.

Upon a default event, PesaKit will be entitled to:

  1. Demand immediate repayment of all outstanding Smartphone Loan Amounts due to PesaKit and within a period of time of PesaKit’s choosing;
  2. Deny your requests to any further loans and/or the access to PesaKit’s services;
  3. Supply information concerning the Event of Default to Credit Reference Bureaus. A copy of any adverse information concerning you sent to a Credit Reference Bureau shall be made available to you upon written request;
  4. Pursue, in its sole discretion, any means of debt recovery available as per the governing law of this Agreement and any other measures PesaKit may decide to pursue. 
  5. Late fees and Penalties If the Borrower defaults in making any payments hereunder within the specified time the Borrower shall pay late fees at the rate of 5% of the   outstanding amount or any portion remaining unpaid from the due date of such payment until actual payment thereof.

You further hereby agree to reimburse and indemnify the Lender against any loss of profit and expenses which the Lender may incur as a consequence of the Borrower’s default in making payment of the loan amount.

PesaKit’s Remedies 

At any time after an Event of Default has occurred and is continuing, PesaKit at all times reserves the right to utilise the Security Software or any means it deems fit to block the Borrower’s Handset and limit the Borrower’s access to the Handset until full payment of the amount due including the applicable late fees.

Return of the Product

You understand that you may return your product if it is not in good working condition. 

  1. In the event where a customer experiences issues with the device,  to do with manufacturer’s flaws or problems, defective phones or issues with the software, they can initiate a return to the dealer to have the device fixed.
  2. The return should be initiated between 3-7 days, to ensure the dealer gets the device to the manufacturers in good time.
  3. If an issue occurs due to an accident, misuse or exposure to liquid or any other external factor, the dealer will not be held liable. The customer will have to pay for it to have it fixed by the dealer.
  4. When returning the item, the agent needs to ensure that all seals, tags and accessories are left intact and the item is in its original packaging. They should also provide proof of payment(receipts or mpesa message transactions) for the device as well as the warranty.
  5. In the event where the customer changes their mind upon being handed over the device. The customer will have an option to change the device under the same loan terms. The customer will not have to cancel and apply.


PesaKit will repair or replace a Product, in accordance with the warranty terms provided by the Product manufacturer. The warranty is valid only if the Product is used as instructed and is not tampered, opened, modified and/or used in other ways not authorised by PesaKit. The warranty period is as set out in the instruction manual for the relevant Product. PesaKit reserves the right to accept any Product that is returned under warranty. 

Delivery and Risk of Loss/Damage 

For purposes of these Terms, delivery to Borrower will occur when the device is placed in the possession of the Borrower or their nominated representative. The Borrower has the right to inspect the device on delivery and either return it to the dealer/retailer or accept delivery by signing the delivery note.

Risk of loss or damage with respect to the financed item shall pass to Customer upon delivery by a courier service or by other means and by signing the delivery note.


These Terms and Conditions as read together with our PesaKit Terms of Use and acceptance of the terms thereof constitute the entire agreement which shall be applicable to you and supersede and extinguish all previous agreements, promises, assurances, warranties, representations and understandings between us, whether written or oral, relating to its subject matter.

You acknowledge that in entering into this Agreement you do not rely on any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in these Terms and Conditions.

The parties herein agree that neither of us shall have any claim for innocent or negligent misrepresentation or negligent misstatement based on any statement in this Agreement.

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