Loan Terms and Conditions


In these conditions

“Pesapal” means the lending entity which has the address of P.O Box 1179 – 00606 Nairobi. which expression shall where the context so admits include its successors in title and assigns.

“Conditions” mean these or any other conditions made by Pesapal from time to time.

Pesapal Mobile loan” means the loan given to the Pesapal customers through Pesapal mobile to buy Airtime, KPLC token, KPLC Postpaid, DSTV, GOTV, ZUKU, and Internet. The amount advanced to the customer shall be determined by the Pesapal limited in its absolute discretion and limits allocated to the customer.

Due Date” means the date of loan maturity after disbursement or such date as shall be notified to the customer by Pesapal in SMS from time to time.

“Account Holder” means the customers who are active users of Pesapal mobile.



These conditions as varied from time to time constitute the Agreement between the Borrower and Pesapal with regard to the loan facility. These conditions apply in addition to the General Terms and Conditions stated in the letter of offer.

The Borrower shall be deemed to have read, understood, and agreed to be bound by these conditions upon the signing of the letter of offer.

The Borrower shall confirm in particular that he has considered the rate of interest and the charges levied by Pesapal as specified in the letter of offer and specified in any other part of this Loan Terms and Conditions and found them to be fair, reasonable, and necessary to enable Pesapal to continue affording the loan facility to the Borrower. The Borrower shall not dispute any claim by Pesapal against him on grounds that charges and or rates of interest charged by the Pesapal are unfair or unreasonable under any circumstances.



At present the following charges apply and may from time to time be subject to change without notice:

Fee Item Charge
Facilitation fee

A facilitation fee shall be charge per month at rate of 0.00%.

Late Payment fee 0.00% p.m. above the normal interest rates on the amount outstanding.



The borrower shall be deemed to have defaulted if your loan facility is not repaid in 30 days after the due date.

If the borrower default Pesapal shall write a notice to the Borrower terminate its obligations under this letter and/or demand immediate repayment of the amount outstanding under the proposed Facility together with accrued interest and all other amounts due and the Borrower will comply with such demand forthwith.



The Borrower agrees that Pesapal may disclose details relating to the loan and including details of default to any third party (including credit agencies) if in the Pesapal’s opinion such disclosure is necessary for the purpose of evaluating any application made to the Pesapal.



Pesapal may at any time and without notice cancel or suspend the right to utilize the Pesapal Mobile Loan entirely or entirely withdraw the Pesapal Mobile Loan as a product without affecting the Account holder’s obligations under these the Pesapal Mobile loan Conditions.



Upon the occurrence and during the continuance of default by the customer, Pesapal is hereby authorized at any time and from time to time, without notice to Borrower and to the fullest extent permitted by law, to set-off and apply any and all deposits held in the borrower Pesapal wallet.



These terms and conditions shall be governed by the laws of the Republic of Kenya.  The Borrower hereby irrevocably submits to the jurisdiction of the Kenyan Courts.  The submission to jurisdiction by the Borrower shall not prevent proceeding being brought in any other competent Court.

The loan facility is repayable on demand at any time as requested by Pesapal.

On demand, the Borrower will pay to Pesapal all monies, which may now or hereafter be owing or unpaid under these loan Facility Terms and Conditions, including but not limited to:

  1. All loan fees, all of which are subject to amendment from time to time at Pesapal’s discretion;
  2. All legal and other costs, charges, and expenses which Pesapal may pay or incur in connection with these loan Facility Terms and Conditions or the recovery of any monies owing hereunder;
  3. A fee to compensate Pesapal for a reasonable estimate of any loss incurred by Pesapal as a result of the default;
  4. All outstanding interest on all such monies calculated until the time of payment.



The Borrower undertakes to indemnify and keep the Pesapal indemnified at all times against all actions, claims, demands, liabilities, losses, damages, costs, charges and expenses of whatever nature inclusive of any legal costs and disbursements incurred by Pesapal in obtaining payment of any monies due and owing to Pesapal from the Borrower. The indemnity shall remain valid, subsisting and binding upon the Borrower notwithstanding withdrawal & termination of the contract.



Pesapal reserves the right to vary, amend or replace all or any of these conditions at any time without prior notice. Pesapal shall notify the Borrower of any changes made to these conditions as soon as is practicable but failure to make such notification shall not invalidate the changes.



In the event of any breach by the Borrower of any of these conditions, Pesapal may in circumstances where the Borrower fail to comply or procure compliance with the terms of a notice served by Pesapal on the Borrower, require immediate repayment in full of the outstanding balance.



All notices to the borrower shall be sent by (Short Message Service) SMS to the mobile phone number provided on time of the application. You acknowledge that you have no claim against the Bank for damages resulting from losses, delays, misunderstandings, mutilations, duplications or any other irregularities due to transmission of any communication pertaining to borrower.



The borrower expressly consents and allows Pesapal to forward personal data and full file credit information to licensed credit reference bureaus in accordance with the Banking (Credit Reference Bureaus) Regulations, 2008.