Terms & Conditions

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Terms and Conditions for Membership and Digital Cooperative Services

These Terms and Conditions (“Terms”) govern the relationship between SIGNTECH SACCO (“the Cooperative”, “we”, “our”, “us”) and approved members (“member”, “you”, “your”) participating in our private member-owned savings and credit cooperative.

The Cooperative operates for mutual support through pooled member contributions and does not offer public banking or public deposit-taking services.

1. Membership

1.1 Membership is restricted to approved persons sharing a common bond including family, community, professional or referred members accepted by the Management Committee.

1.2 Membership is by referral or approval and is not open to the general public as a public financial service.

1.3 All information provided during registration must be accurate and up to date.

1.4 The Cooperative may verify information and suspend or terminate membership for false information or misconduct.

1.5 The registered phone number shall serve as the member’s primary identification channel. Changes require identity verification.

2. Member Contributions

2.1 Members may make savings share contributions through approved channels including mobile money and other approved methods.

2.2 Minimum monthly contribution shall be Ksh.500.

2.3 Members may request partial redemption of up to 40% of accumulated savings shares once annually on 15th December provided they have no outstanding credit facility and their savings are not committed as guarantor security.

2.4 At least 60% of savings shares shall remain retained to preserve membership standing and credit eligibility.

2.5 Members shall maintain minimum cumulative savings shares of Ksh.3,000 to remain active.

2.6 Savings share contributions are ordinarily retained for a minimum of 24 months.

2.7 A member exiting within the first 24 months shall incur a 5% administrative deduction on redeemed savings shares.

3. Member Credit Facilities

3.1 Active members may apply for internal member credit facilities funded from pooled member contributions.

3.2 Approval is subject to savings history, repayment capacity, guarantor support and internal credit assessment.

3.3 Members may qualify for credit facilities up to three (3) times their savings shares, subject to approval.

3.4 Credit Charges:

• Short-Term Emergency Credit (Amounts below Ksh.20,000 repayable in 1–5 months): 12% flat facility charge plus Ksh.50 processing fee.
• Standard Development Credit (Ksh.20,000 and above, 6 months and above): 12% per annum plus Ksh.300 processing fee.

3.5 The Cooperative reserves the right to revise credit charges upon notice to members.

3.6 The Cooperative reserves discretion to decline applications.

4. Repayment and Default

4.1 Members shall repay according to agreed schedules.

4.2 Delayed repayments attract a default administration penalty of Ksh.300 per overdue month.

4.3 Outstanding balances may be recovered from borrower savings shares or guarantor savings shares where applicable.

4.4 Persistent default may affect future eligibility and may trigger internal recovery action.

5. Guarantor Obligations

5.1 Credit applicants may be required to provide guarantors.

5.2 In case of default, guarantors consent that pledged savings shares may secure repayment.

5.3 Guarantor liability shall be limited to guaranteed exposure.

6. Digital Platform Usage

6.1 Members must keep login credentials secure and confidential.

6.2 Transactions authenticated through valid login details shall be deemed authorized.

6.3 The Cooperative may suspend accounts suspected of fraud or unlawful activity.

7. Fees and Charges

7.1 Applicable fees are as follows:

7.2 Fees may be revised with notice to members.

8. Annual Surplus Distribution

8.1 Members with at least 10 months continuous participation may qualify for annual surplus distribution.

8.2 Surplus distributions may be declared on 1st March subject to cooperative performance and reserve requirements.

8.3 Surplus allocations are not guaranteed returns.

9. Privacy and Data Protection

9.1 Member data shall be processed in accordance with the Kenya Data Protection Act, 2019.

9.2 Data may be used only for membership administration, credit administration and lawful compliance purposes.

9.3 Data may be retained for up to five (5) years after exit.

10. Member Responsibilities

10.1 Provide accurate information.

10.2 Maintain contributions and honor repayment obligations.

10.3 Use the platform lawfully and responsibly.

11. Member Exit

11.1 A member may exit voluntarily upon written notice and settlement of obligations.

11.2 Savings share redemption shall be subject to deductions, loan balances or guarantor commitments.

11.3 Exit does not extinguish pending liabilities.

12. Dispute Resolution

12.1 Disputes shall first be resolved amicably through internal mechanisms.

12.2 Unresolved disputes may be referred to lawful dispute resolution mechanisms available under Kenyan law.

13. Amendments

13.1 The Cooperative reserves the right to amend these Terms at any time.

13.2 Members will be notified through the platform, SMS or email.

14. Governing Law

These Terms are governed by the Laws of Kenya and principles applicable to cooperative associations.

15. Nature of Services

The Cooperative operates as a private member cooperative for mutual savings and credit support and does not hold itself out as offering public banking or public deposit-taking services.

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