1.1. This Agreement sets out the complete terms and Conditions (hereinafter called “these Terms and conditions”) which shall be applicable to the Pesa Pata Mobile Account (as hereinafter defined) opened by you (as hereinafter defined) with Paddy Micro-Investments Limited (as hereinafter defined).

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

2.1. In these Terms and Conditions the following words and expressions (save where the context requires otherwise) bear the following meanings:

2.1.1. “Financial Institution” means Paddy Micro-Investments Limited, a registered company incorporated in Kenya

2.1.2. “Credit Reference Bureau” means a credit reference bureau duly licensed under the Banking Act pursuant to the Banking (Credit Reference Bureau) Regulations, 2013, as amended, revised or promulgated from time to time, to inter alia, collect and facilitate the sharing of customer credit information;

2.1.3. “Customer” means the person in who has registered for Pesa Pata on the mobile platform;

2.1.4. “Customer Care Centre” means the people assigned to assist Pesa Pata agents and their clients as may be notified to the Customer by the Financial Institution from time to time;

2.1.5. “E-Money” means the electronic monetary value depicted in your M-PESA Account representing an equal amount of cash;

2.1.6. “Equipment” includes your mobile phone handset, SIM Card and/or other equipment which when used together enables you to access the Network;

2.1.7. “IPRS” means the Integrated Population Registration System set up and maintained by the Government of Kenya under the Ministry of State for Immigration and Registration of Persons and its successors;

2.1.8. “Pesa Pata Agent Account” means an account held by an Agent with the Financial Institution and which is opened and operated in accordance with the Terms and Conditions herein contained;

2.1.9. “Qualifying” means a means any one of your Accounts held with us that we deem acceptable for registration for use with our Service;

2.1.10. “Pesa Pata Menu” means the Pesa Pata Menu on the USSD System;

2.1.11. “USSD” means the means unstructured supplementary services data, which allows you to browse Pesa Pata menus;

2.1.12. “M-PESA Account” means your mobile money store of value, being the record maintained by Safaricom of the amount of E-Money from time to time held by you in the M-PESA System;

2.1.13. “M-PESA Service” means the money transfer and payments service provided by Safaricom through the M-PESA System;

2.1.14. “M-PESA System” means the system operated by Safaricom in Kenya for the provision of the M-PESA Service using the Network;

2.1.15. “Pesa Pata PIN” means your personal identification number being the secret code used to access and operate the Pesa Pata Account;

2.1.16. “Mpesa Subscriber” means any person registered to use the M-PESA System to send or receive money or make payments;

2.1.17. “Network” means the mobile cellular network operated by Safaricom;

2.1.18. “Request” means a request or instruction received by the Financial Institution from you or purportedly from you through the Network and the System and upon which the Financial Institution is authorized to act;

2.1.19. “Safaricom” means Safaricom Limited incorporated in Kenya as a limited liability company under the Companies Act (Cap 486 of the Laws of Kenya);

2.1.20. “Services” shall include any form of financial services or products that the Financial Institution may offer you pursuant to this Agreement and as you may from time to time subscribe to and “Service” shall be construed accordingly;

2.1.21. “SIM Card” means the subscriber identity module which when used with the appropriate mobile phone handset enables you to access the Network and to use the M-PESA and PESA PATA System;

2.1.22. “SMS” means a short message service consisting of a text message transmitted from one mobile phone to another;

2.1.23. “System” means the Financial Instituions’s electronic banking and communications software enabling the Customer to communicate with the Financial Institution for purposes of the Services. The System and the Services will for the purpose of this Agreement be accessed through the Safaricom System;

2.1.24. “We,” “our,” and “us,” means the Financial Institution and includes the successors and assigns of the Financial Institution;

2.1.25. “You” or “your” means the Customer and includes the personal representatives of the Customer;

2.1.26. The word “Customer” shall include both the masculine and the feminine gender as well as juristic persons;

2.1.27. Words importing the singular meaning where the context so admits include the plural meaning and vice versa.


3.1. Before applying to open the Pesa Pata Agent or Loan Account via the USSD System by dialling *269# you should carefully read and understand these Terms and conditions which will govern the use and operation of the Pesa Pata Account.

3.2. If you do not agree with these Terms and conditions, please click “Decline” on the Pesa Pata Menu.

3.3. You will be deemed to have read, understood and accepted these Terms and Conditions:

3.3.1. upon clicking on the “Accept” option on the Pesa Pata Menu requesting you to confirm that you have read, understood and agreed to abide with these Terms and Conditions; and/or

3.3.2. by using or continuing to use and operate the Pesa Pata Account and/or the Services.

3.4. By applying to open the Pesa Pata Account with the Financial Institution, you agree to comply with and be bound by these Terms and Conditions for the time being and from time to time in force governing the operation of the Pesa Pata Account and you affirm that
these Terms and Conditions herein are without prejudice to any right that the Financial Institution may have with respect to the Pesa Pata Account in law or otherwise.

3.5. These Terms and Conditions may be amended or varied by the Financial Institution from time to time and the continued use of your Pesa Pata Account and/or the Services constitutes your agreement to be bound by the terms of any such amendment or variation.

4.1. In order to open a Pesa Pata Account with the Financial Institution, you must be at least 18 years old and a registered and active M-PESA Subscriber for at least six (6) months immediately preceding the date of your application. We reserve the right to verify with Safaricom the authenticity and status of your M-PESA Account.

4.2. You may open a Pesa Pata Account solely by way of an electronic application made by you using your Equipment via the Pesa Pata Menu on the Safaricom System.

4.3. You hereby agree and authorize the Financial Institution to request Safaricom for your personal information held by Safaricom pursuant to the agreement between you and Safaricom for the provision of Safaricom products and services and M-PESA Service including your phone number, name, date of birth, ID or Passport Number and such other information that will enable the Financial Institution to identify you and comply with the regulatory “Know Your Customer” requirements (together the “Personal Information”). You also hereby agree and authorize the Financial Institution to request Safaricom for information relating to your use of the M-PESA Service, M-PESA System and Safaricom Services as the Financial Institution shall require for purposes of providing you the Services (“M-PESA Information”). You hereby consent to the disclosure of the Personal Information and the M-PESA Information by Safaricom to the Financial Institution and to the aforesaid use of the Personal Information and the M-PESA Information by the Financial Institution.

4.4. You hereby agree and authorize the Financial Institution to obtain and procure your Personal Information contained in the IPRS from the Government of Kenya and you further agree and consent to the disclosure and provision of such Personal Information by the Government of Kenya to the Financial Institution.

4.5. You hereby further acknowledge and authorize the Financial Institution to verify your Personal Information received from Safaricom pursuant to Clause 4.3 against the information received from the Government of Kenya in your respect as contained in the IPRS.

4.6. Acceptance by the Financial Institution of your application for a Pesa Pata Account shall be done via SMS sent to the Safaricom Mobile Phone Number associated with your M-PESA Account. You acknowledge and accept that the acceptance by the Financial Institution of your application for a PESA PATA Account does not create any contractual relationship between you and Safaricom beyond the terms and conditions that apply to your M- PESA Account from time to time.

4.7 The Financial Institution reserves the right to decline your application for a PESA PATA Account or to revoke the same at any stage at the Financial Institution’s sole discretion and without assigning any reason or giving any notice thereto

4.8 You hereby irrevocably authorize the Financial Institution to act on all Requests received by the Financial Institution from you (or purportedly from you) through the System and to hold you liable in respect thereof. The Financial Institution may nevertheless refuse to carry out any Requests which would result in there being an overdraft on your Pesa Pata Account.

4.9 An agent must be able to trace a client at any given time and should not accept referrals from anyone.

4.10 Users of the system should expect notifications in electronic form(app), SMS, email-the schedule of which the Financial Institution will determine.


5.1 You hereby irrevocably authorize the Financial Institution to act on all Requests received by the Financial Institution from you (or purportedly from you) through the System and to hold you liable in respect thereof.

5.2. The Financial Institution shall be entitled to accept and to act upon any Request, even if that Request is otherwise for any reason incomplete or ambiguous if, in its absolute discretion, the Financial Institution believes that it can correct the incomplete or ambiguous information in the Request without any reference to you being necessary.

5.3. The Financial Institution shall be deemed to have acted properly and to have fully performed all the obligations owed to you notwithstanding that the Request may have been initiated, sent or otherwise communicated in error or fraudulently, and you shall be bound by any Requests on which the Financial Institution may act if the Financial Institution. has in good faith acted in the belief that such instructions have been sent by you.

5.4. The Financial Institution may, in its absolute discretion, decline to act on or in accordance with the whole or any part of your Request pending further enquiry or further confirmation (whether written or otherwise) from you. The Financial Institution shall not be under any obligation to so decline in any case, and shall in no event or circumstance be liable for not so declining.

5.5. You agree to and shall release from and indemnify the Financial Institution. against all claims, losses,
damages, costs and expenses howsoever arising in consequence of, or in any way related
to the Financial Institution having acted in accordance with the whole or any part of any of your Requests (or failed to exercise) the discretion conferred upon it.

5.6. You acknowledge that to the full extent permitted by law the Financial Institution shall not be liable for any unauthorized transfer, acceptance, remittance, disclosure, any activity or any incident on your account by the fact of the knowledge and/or use or manipulation of your Pesa Pata PIN, password, ID or any means whether or not occasioned by your negligence.

6.1. The Financial Institution shall have a general lien over all your property/assets in its possession in the event that you owe any money to the Financial Institution including but not limited to cash, goods, securities or valuables deposited for safe custody as security, cheques presented, bills and any other movable or immovable property charged to secure repayment of any money, whether or not that money has been repaid, and also over all property in respect of which, by the general law, the Financial Institution has lien.

6.2. The Financial Institution may at any time give you notice in writing that if an accrued debt is not paid within a period being not less than 14 days (or such other period specified in the notice) from the date of receipt by you of the notice then the Financial Institution may, without further notice, realize sufficient of your assets to discharge the debt. Any part payment made will be accepted strictly on account and without prejudice to the Financial Institution’s rights.

6.3 You hereby constitute us as your attorney for the purposes of any transaction will be held on your behalf in relation to your assets for purposes of discharging the debt.

7.1. Complaints may be made in person, in writing, by email, facebook page or by telephone. 7.2. The Financial Institution will take all measures within its means to resolve your complaints within a reasonable time. All complaints will be handled in accordance with the Financial Institution’s complaints handling procedures, which are available on request the Customer Care Centre. Where a notification regarding your complaint or any other matter is expected from the Financial Institution but not received, the complaint must be made within a reasonable time after non-receipt of such notification.

7.3. Applicable tariffs will be charged by your telephone and internet service provider (s) when communicating with the Customer Care Centre.

As a holder of a Pesa Pata Account, you will be entitled, subject to these Terms and Conditions, to operate a Pesa Pata account into which you may transfer money from your M-PESA Account into Pesa Pata Account and/or to borrow money from Pesa Pata as follows:

8.1. Pesa Pata Agent Account

8.1.1 As a holder of a Pesa Pata Agent Account, you may pay the entry fee into your account or lend through your Pesa Pata Agent Account using the Pesa Pata Menu on your phone. The transaction fees payable to Safaricom for transactions effected in respect of your M-PESA and Mobile Account is between you and Safaricom service provider.
8.1.2 Commissions are paid on Pesa Pata Agent Account on weekly basis or on demand according to level of entry fee as stipulated on our charts.

8.2. Pesa Pata Loan Account

8.2.1 As a holder of a Pesa Pata Loan Account, you may, subject to these Terms and Conditions, apply for a loan from Pesa Pata using the Pesa Pata Menu on your phone.

8.2.2 Where you apply for a loan from Pesa Pata, you acknowledge that you give consent to have your credit score assessed and Credit Reference Bureau status verified. Your application shall be appraised according to the applicable loan appraisal processes of Pesa Pata. Pesa Pata reserves the right at its sole discretion and without assigning any reason to approve or decline your application for a loan.

8.2.3. Subject to approval of your application for a loan, Pesa Pata shall disburse to you a loan of an amount to be based on the agent’s entry fee level in its sole discretion subject to a minimum amount of Kenya Shillings Two thousand (Kshs. 2000/=) and a maximum amount of Kenya Shillings Twenty Thousand (Kshs. 20,000/=) or such other minimum or maximum amount as Pesa Pata may from time to time in its sole discretion determine (the “Loan”)

8.2.4 The proceeds of the Loan shall be credited into your M-PESA Account in full amount requested; no transactional fee or “hidden fees” will be charged.

8.2.5. You shall repay the Loan according to the schedule provided (4 weekly repayments). In the event that you default in the repayment of the loan in accordance to the stipulated schedule, then the whole balance of the said loan amount and penalties undercharged at the date of such default shall immediately become due and payable by you without demand and you shall bear penalties thereon during the period of default at a rate of 5% per day till full payment. Penalties can be written off at the discretion of your agent and cannot be more than the loan disbursed.

8.2.6. You shall make all payments due from you to Pesa Pata in respect of the Loan and Interest Fees using the M-PESA Service, Paybill number 519606 and account number being the account provided by the us when the loan was disbursed.

8.2.7 Pesa Pata shall be entitled to terminate this Agreement and close your Pesa Pata Agent Account in accordance with the provisions of Clause 13 without prejudice to any of its rights accruing hereunder if you fail to repay the Loan and/or the Interest Fees due thereon within thirty (30) calendar days of the disbursement of the Loan.

8.2.8 Pesa Pata shall hold your funds in your Pesa Pata Agent Account as collateral and security for any amounts outstanding and due from you to Pesa Pata in respect of your Pesa Pata Loan Account. You hereby agree and confirm that Pesa Pata is entitled in its discretion to prevent or restrict you from withdrawing in whole or in part the funds in your Pesa Pata Account for so long as and to the extent of the amount outstanding in respect of your Pesa Pata Loan Account without Pesa Pata giving any notice to you and/or without incurring any liability to you whatsoever in that connection.

8.2.9. Pesa Pata reserves the right to vary the terms of the Loan including the interest charged thereon from time to time having regard to the prevailing rules and regulations of the policies of Pesa Pata .

8.3 Inactive Accounts

8.3.1 Your Pesa Pata Account will automatically be classified as inactive if you do not initiate any transactions on the account for a continuous period of 1 month

8.3.2 Your Pesa Pata Account will be classified as Dormant if it remains inactive for a further period of 1 months, in which case the account balances shall be transferred from your Pesa Pata Account to a central account for security reasons.

8.3.2 You will not be allowed to transact on an inactive or dormant account but the Financial Institution. shall, upon your written (e.g. letter/email) request, inform you of the procedure to be followed to activate your inactive/dormant account

8.4 Half Commission Accounts

8.4.1 The Financial Institution may decide to award the Customer with a Pesa Pata Agent Account loaded with an entry fee amount. This account will be classified as a half commission account and will attract half commissions

8.5 Full Commission Accounts

8.5.1 An agent will load his Pesa Pata Agent account with an entry fee which will serve as a basis of operating the account. This account will be classified as a full commission account and will attract full commissions


9.1. The Financial Institution shall not be responsible for any loss suffered by you should the Services be interfered with or be unavailable by reason of (a) the failure of any of your Equipment, or (b) any other circumstances whatsoever not within the Financial Institution’s control including , without limitation, force majeure or error, interruption, delay or non- availability of the System, terrorist or any enemy action equipment failure, loss of power, adverse weather or atmospheric conditions, and failure of any public or private telecommunications system.

9.2. The Financial Institution will not be liable for any losses or damage suffered by you as a result of or in connection with:

9.2.1. Failure, malfunction, interruption or unavailability of the System, your Equipment, the Network, M-PESA System and/or M- PESA Service;

9.2.2 The money in your Pesa Pata Account being subject to legal process or other encumbrance restricting payments or transfers thereof;

9.2.3 Any fraudulent or illegal use of the Services, the System and/or your Equipment; or

9.2.4. Your failure to comply with these Terms and conditions and any document or information provided by the Financial Institution concerning the use of the System and the Services.

9.2.5 All warranties and obligations implied by law are hereby excluded to the fullest extent permitted by law.


10.1. In consideration of the Financial Institution complying with your instructions or Requests in relation the Pesa Pata Account, you undertake to indemnify the Financial Institution and hold it harmless against any loss, charge, damage, expense, fee or claim which the Financial Institution suffers or incurs or sustains thereby and you absolve the Financial Institution from all liability for loss or damage which you may sustain from the Financial Institution acting on your instructions or requests or in accordance with these Terms and conditions.

10.2. The indemnity in clause 10.1 shall also cover the following:

10.2.1. All demands, claims, actions, losses and damages of whatever nature which may be brought against the Financial Institution or which it may suffer or incur arising from its acting or not acting on any Request or arising from the malfunction or failure or unavailability of any hardware, software, or equipment, the loss or destruction of any data, power failures, corruption of storage media, natural phenomena, riots, acts of vandalism, sabotage, terrorism, any other event beyond the Financial Institution’s control, interruption or distortion of communication links or arising from reliance on any person or any incorrect, illegible, incomplete or inaccurate information or data contained in any Request received by the Financial Institution.

10.2.2. Any loss or damage that may arise from your use, misuse, abuse or possession of any third party software, including without limitation, any operating system, browser software or any other software packages or programs

10.2.3. Any unauthorized access to your Pesa Pata Account or any breach of security or any destruction or accessing of your data or any destruction or theft of or damage to any of your Equipment.

10.2.3. Any loss or damage occasioned by the failure by you to adhere to these Terms and Conditions and/or by supplying of incorrect information or loss or damage occasioned by the failure or unavailability of third party facilities or systems or the inability of a third party to process a transaction or any loss which may be incurred by the Financial Institution as a consequence of any breach by these Terms and conditions.

10.2.4. Any damages and costs payable to the Financial Institution in respect of any claims against the Financial Institution for recompense for loss where the particular circumstance is within your control.


You acknowledge that the intellectual property rights in the System (and any amendments, upgrades or enhancements thereto from time to time) and all associated documentation that the Financial Institution provides to you through the System or otherwise are vested either in the Financial Institution or in other persons from whom the Financial Institution has a right to use and to sub-license the System and/or the said documentation. You shall not infringe any such intellectual property rights. You shall not duplicate, reproduce or in any way tamper with the System and associated documentation without the prior written consent of the Financial Institution


11.1. The Financial Institution may send information concerning the Pesa Pata Account via SMS to the Safaricom Mobile Phone number associated with your M- PESA Account.

11.2. You acknowledge that you have no claim against the Financial Institution for damages resulting from losses, delays, misunderstandings, mutilations, duplications or any other irregularities due to transmission of any communication pertaining to the Pesa Pata Account


The Customer for do hereby assigns unto the Financial Institution for the purposes of the half commission accounts all and singular chattels equal to the value of the loan amount by way of security for the payment of the contract sum of money and interest. In the case of default, in any instalment, by you (in this case the borrower), the Chattels Mortgage will take effect as part of this agreement and enforced by our agent/s.

See below link



13.1. You may contact the Customer Care Center to report any disputes, claims or Pesa Pata Account discrepancies.

13.2. Any dispute arising out of or in connection with this Agreement that is not resolved by Customer Care Centre representatives shall be referred to arbitration by a single arbitrator to be appointed by agreement between the parties or in default of such agreement within 60 days of the notification of a dispute, upon the application of either party, by the Chairman for the time being of the Chartered Institute of Arbitrators (Kenya Branch). Such arbitration shall be conducted in the English language in Nairobi in accordance with the Rules of Arbitration of the said Institute and subject to and in accordance with the provisions of the Arbitration Act.

13.3. To the extent permissible by Law, the determination of the Arbitrator shall be final, conclusive and binding upon the parties hereto.

13.4. This Agreement shall be governed by and construed in accordance with the laws of the Republic of Kenya.