These terms of use govern your engagement and utilization of the Goal Savings
Account with Mombo Sacco. By accessing or using the Goal Savings Account, you
agree to adhere to these terms. Please read them carefully.

1. Definition and Scope

1.1 Definitions
– “Goal Savings Account” refers to both personal and shared saving schemes provided by Mombo Sacco.
– “Member” refers to any individual or group participant with an active Goal Savings Account.
– “Admin User” refers to the creator of a Shared Goal who manages the group and invites members.
– “Sprint Goal” implies a short-term savings account with a maximum period of 180 days.
– “Marathon Goal” implies a long-term savings account with a maximum period of 1035 days.
– “Status” refers to the phases of a Goal account, including Pending, Active, Matured, and Closed.
1.2 Scope
These terms apply to all Goal Savings Accounts offered by Mombo Sacco and
outline the rules and conditions of use for both individual members and groups.

2. Acceptance of Terms

2.1 Agreement to Terms
– By creating or using a Goal Savings Account, members accept these terms and any associated policies of Mombo Sacco.
2.2 Future Updates
– Members agree to accept amendments to these terms as notified by Mombo Sacco via digital communication channels.

3. Account Management

3.1 Account Creation and Administration
– Individual members can create Personal Goals, while groups can create Shared Goals with an Admin User.
– 3.1.1 Pending: Account created, yet to be funded.
– 3.1.2 Active: Account funded. Allows deposits, redemptions, and accrues daily profit.
– 3.1.3 Matured: Goal reached its save-by date. Stops profit accrual, awaits final transactions.
– 3.1.4 Closed: Balance sub-Ksh 1, automatically closes the account.
3.2 Requirements for Account Actions
– Members must undergo KYC verification, providing a National ID or passport, KRA PIN certificate, and a recent passport photo before redemption of funds.
– 3.2.1 KYC Verification: Mandatory for activating account transfers and redemptions.

4. Transactions and Fraud Monitoring

4.1 Deposits and Redemptions
– Active Goals accrue profits and permit deposits. Redemptions depend upon the Goal type.
– 4.1.1 Sprint Goals: Allow same-day deposits and redemptions.
4.1.2 Marathon Goals: Locks funds for the first 30 days.
4.2 Fraud and Money Laundering Prevention
– Members must ensure all transactions are legitimate and do not involve fraudulent or illegal activities.
– 4.2.1 Fraudulent Deposits: Will result in immediate suspension and possible legal action.
– 4.2.2 Money Laundering: Subject to reporting to authorities, resulting in termination of membership.

5. Profit and Fees

5.1 Profit Accrual and Penalty
– Daily profit accrued prorated annually, with a 5% withholding tax on withdrawn profits.
– 5.1.1 Sprint Goals: Allow withdrawal anytime without penalty.
– 5.1.2 Marathon Goals: Penalty-free after 180 days; 70% profit penalty if withdrawn after the lock period (30 days) to 180 days.
5.2 Fees
– No opening or monthly maintenance fees.
– 5.2.1 Administration Fee: A 0.5% fee applies to each redemption.

6. Member Responsibilities

6.1 Admin User Responsibilities
– Invites members to Shared Goals and manages group details.
– Can initiate user removals, requiring majority confirmation for execution
– Can transfer Admin rights and permissions to other members.
6.2 Member Contribution and Interaction
– Members engage in shared decision-making and can chat within the Shared Group.
– Members can have multiple active goals simultaneously, enhancing financial agility.

7. Closure and Suspension of Accounts

7.1 Grounds for Suspension
– Breach of terms, especially involving fraud or money laundering, will result incaccount suspension.
7.2 Closure Process
– Repeated suspension of accounts will result in closure of accounts, subject to clearance of all outstanding obligations.

8. Disputes Management

8.1 Resolution Process
– Members must first attempt amicable resolution through Mombo Sacco’s Customer Support.
– Unresolved disputes may be escalated to a recognized arbitration center in Nairobi, Kenya.

9. Indemnification

9.1 Indemnity from Fraudulent Activities
– Members agree to indemnify Mombo Sacco from any liabilities, losses, or damages resulting from fraudulent deposits or illegal activities conducted through their accounts.

10. Compliance and Reporting

10.1 Regulatory Compliance
– Mombo Sacco adheres to financial regulations and mandates lawful reporting of suspicious activities.

11. Utilization of Goal Savings Funds

11.1 Purpose of Fund Utilization- The primary objective of utilizing funds deposited in Goal Savings Accounts is to facilitate lending and achieve the collective financial objectives of both Mombo Sacco and its members.
11.2 Fund Allocation and Investment Strategy – Funds deposited by members into Goal Savings Accounts may be utilized in the following ways to generate profits:
– 11.2.1 Lending Facilities: A substantial portion of the funds will be used to offer loans to members. By providing both short-term and long-term loan products, we not only meet members’ financial needs but also generate returns that contribute to the profit shared with Goal Savings Account holders.
– 11.2.2 Short-Term Investment Vehicles: Surplus deposits, not immediately required for lending, will be prudently invested in low-risk short-term investment vehicles such as treasury bills, bank fixed deposits, and other similarly secure financial instruments. These investments provide additional earnings, turning over funds that contribute to profit rates offered to members.
11.3 Commitment to Financial Health
– Mombo Sacco is committed to maintaining financial prudence and balancing risk to ensure that the funds are utilized efficiently while preserving the capital of our members. Through this careful allocation and investment strategy, we aim to optimize profit generation for Goal Savings Account holders.
11.4 Transparency and Reporting
– Members will have access to reports and updates outlining the utilization and performance of both lending activities and investment vehicles, ensuring transparency and enabling members to remain informed about how their savings contribute to mutual growth.

By continuing to use the Goal Savings Account, you acknowledge and accept these terms and agree to stay alert for updates. Mombo Sacco aims to provide a smooth digital experience, enabling individuals and businesses to manage their finances easily and securely.