Terms of Service – Kings Sacco

Please read these Terms of Service carefully before using the K-SACCO platform. By registering, depositing funds, or using any feature of the platform, you confirm that you have read, understood, and agreed to be bound by these terms.

If you do not agree to these terms, you must not use or continue to use the K-SACCO platform.

Section 01

About K-SACCO

K-SACCO is a digital savings and lending platform developed and managed by Kings Education Centre, a community-based initiative established to promote financial inclusion and disciplined saving among its members. Kings Education Centre is currently in the process of formal registration as a legal entity.

The platform enables registered members to save money, access short-term loans, and earn additional income by guaranteeing loans for fellow members. K-SACCO is not a bank and is not regulated by the Central Bank of Kenya. It operates as an internal community fund pending the completion of its formal registration. These terms will be updated to reflect the registered entity name and details once registration is finalised.

Until formal registration is complete, Kings Education Centre operates this platform on a community trust basis. Members acknowledge this status at the time of registration.

Section 02

Eligibility & Registration

To register and use K-SACCO, you must:

Be at least 18 years of age.
Be a member or affiliate of Kings Education Centre community.
Provide accurate personal information during registration, including your full name and phone number.
Have access to a mobile device capable of using the platform.

By registering, you confirm that all information you provide is true, accurate, and up to date. Kings Education Centre reserves the right to verify your identity and to refuse or cancel registration if any information is found to be false or misleading.

Each individual may hold only one account. The creation of duplicate accounts is not permitted and may result in suspension.

Section 03

Deposits & Savings

All deposits made on the platform are allocated automatically according to the following fixed structure:

80% is credited to your Active Balance, which is available for withdrawals, loan applications, and guarantees.
16.4% is credited to your BOSA Savings, which are locked for a period of one (1) year from the date of deposit.
3.6% is deducted as a deposit fee to support the operational costs of the platform.

BOSA Savings cannot be withdrawn before the one-year lock period expires. This structure is in place to encourage disciplined saving and to provide security for loans taken by the member.

The deposit fee (3.6%) is non-refundable under any circumstances.

Section 04

Loans

Members in good standing may apply for loans subject to the following conditions:

The maximum loan amount is two times (2×) your active balance at the time of application.
Loans must be repaid within 30 days of disbursement.
A loan may only be disbursed once sufficient guarantors have committed to backing the request.
You may not apply for a new loan while a previous loan remains unpaid.

By applying for a loan, you agree to repay the full principal plus applicable interest by the due date. Failure to repay will trigger the default and recovery process outlined in Section 7.

Section 05

Loan Guarantees

Members may choose to guarantee loans for other members. By agreeing to guarantee a loan, you authorise the platform to temporarily lock a portion of your active balance for the duration of that loan.

Locked funds are returned to your active balance once the borrower fully repays the loan.
Guarantors earn 50% of the loan interest, distributed proportionally based on the amount guaranteed.
Guarantors are not liable for the repayment of the loan principal. In the event of default, recovery is made from the borrower's own balances (see Section 7).

Guaranteeing a loan temporarily reduces your available active balance for withdrawals and other guarantees. Plan accordingly.

Section 06

Interest, Fees & Penalties

The following charges apply to all loans on the platform:

Loan interest: 10% of the loan principal, due at the time of repayment.
Late repayment penalty: An additional 10% is charged on any loan not repaid within the 30-day period, bringing the total interest to 20%.
Deposit fee: 3.6% deducted from every deposit. This is non-refundable.

All charges are applied automatically by the platform. No manual intervention is required from administrators. Members are advised to plan their repayments ahead of the due date to avoid penalties.

Borrowers who repay on time receive a 10% rebate on the interest they paid, credited directly to their active balance.

Section 07

Default & Recovery

A loan is considered in default if it remains unpaid after the 30-day repayment period, including the applicable penalty period.

In the event of default, the platform will recover the outstanding amount in the following order:

From the borrower's active balance.
From the borrower's BOSA savings, even if the lock period has not yet expired.

Guarantors' funds are not used for recovery. However, a member's star rating will be negatively affected by defaulting, which may make it difficult to secure guarantors for future loan applications.

Repeated defaults may result in suspension of borrowing privileges or termination of your account.

Section 08

Member Conduct

Members are expected to engage with the platform and with fellow members honestly and respectfully. The following conduct is strictly prohibited:

Providing false information during registration or loan applications.
Attempting to manipulate the platform, its balances, or its processes through fraudulent means.
Creating multiple accounts to circumvent loan or guarantee limits.
Harassing, threatening, or coercing other members — including in the associated WhatsApp group.
Sharing your account credentials with any other person.

Any member found in violation of these conduct standards may have their account suspended or permanently terminated, with any remaining balances withheld pending investigation.

Section 09

Account Termination

Members who wish to close their account must contact a platform administrator directly to initiate the process. Before closure can be approved, the following conditions must be met:

All outstanding loans must be fully repaid, including any applicable interest or penalties.
All active guarantees must have been released or settled.
Any available active balance must be withdrawn prior to or at the time of closure.

Account closure requests are reviewed and processed by administrators at their discretion. Members will be notified of the outcome through the app inbox or direct communication.

Kings Education Centre reserves the right to suspend or permanently terminate any account that is found to be in violation of these Terms of Service, without prior notice where the circumstances warrant immediate action.

BOSA savings subject to a lock period at the time of account closure will only be released once the lock period expires.

Section 10

Privacy & Data

K-SACCO collects personal information — including your name, phone number, and transaction history — solely for the purpose of operating your account and providing platform services.

Your personal data is not sold to third parties.
Transaction data may be reviewed by Kings Education Centre administrators for the purpose of auditing, compliance, and dispute resolution.
By registering, you consent to the collection and use of your data as described above.

The platform is operated in Kenya and your data is stored and processed within the applicable legal framework of the Republic of Kenya.

Section 11

Limitation of Liability

Kings Education Centre makes reasonable efforts to ensure the platform operates reliably and securely. However, to the extent permitted by law, Kings Education Centre shall not be liable for:

Loss of funds resulting from a member's failure to comply with these terms.
Technical interruptions, downtime, or platform errors beyond our reasonable control.
Decisions made by members regarding guarantees or loans.
Loss or damage arising from unauthorised access to a member's account due to the member's own negligence (e.g. sharing login credentials).

Members use the platform at their own risk and are encouraged to make informed decisions before committing funds to any loan or guarantee.

Section 12

Changes to These Terms

Kings Education Centre reserves the right to update or modify these Terms of Service at any time. Members will be notified of material changes through the app inbox or the associated WhatsApp group.

Continued use of the platform after changes have been communicated constitutes acceptance of the revised terms. It is your responsibility to review these terms periodically.

Section 13

Governing Law & Disputes

These Terms of Service are governed by and construed in accordance with the laws of the Republic of Kenya.

In the event of a dispute between a member and Kings Education Centre, both parties agree to first attempt resolution through direct communication. If a resolution cannot be reached, the matter shall be referred to mediation before any formal legal proceedings are initiated.

Section 14

Contact

For any questions, complaints, or correspondence regarding these Terms of Service, please contact:

Organisation: Kings Education Centre
Website: kingsedu.co.ke
Address: P.O BOX 62, Turbo
WhatsApp / Phone:0116848088