Legal Agreement

Terms and Conditions

Please read these terms carefully before using our services

Effective Date: October 6, 2025

Welcome to Ufalme Wetu Welfare Programme ("we", "our", or "us"). By applying for membership, saving, borrowing, or using any of our products and services, you agree to abide by these Terms and Conditions. These Terms and Conditions govern the relationship between Ufalme and its members, ensuring transparency, accountability, and mutual benefit.

Each Chama is established as a non-political, non-sectarian, voluntary self-help organization of members for the furtherance of the objectives hereinafter appearing. Give your chama a name that is reflective of your objectives and ambitions.

2. Membership

2.1 Eligibility

Membership is open to any individual, group, or institution that meets the requirements of Ufalme Wetu.

2.2 Application

A prospective member shall complete a membership application form, submit a copy of a national ID or passport, and pay the required entrance and registration fees.

2.3 Membership Approval

Ufalme Wetu reserves the right to approve or reject any application at its discretion.

2.4 Termination of Membership

Membership may be terminated by resignation, death, expulsion, or failure to meet obligations as defined in the By-Laws.

2.5 Registration Fees

Every member of the Organization shall, on becoming a member, pay to the Organization a non-refundable registration fee of Kshs. 150, or such other fee as may be prescribed. A new member will be required to pay an additional amount of Kshs. 50 for every month since the Chama was formed.

2.6 Monthly Contributions

Every member will be required to pay a monthly contribution of not less than the amount set between Kshs. 300 and Kshs. 2,000, and an insurance fund of Kshs. 50, or such other fee(s) as may be determined by the General Meeting of the Organization from time to time.

2.7 Meeting Attendance

Each member shall attend all the meetings, or send an apology, and send amounts due for shares, insurance, advance, loans and interest.

3. Data Privacy and Confidentiality

3.1 Data Protection Commitment

Ufalme Wetu collects and processes members' personal information for legitimate operational purposes. We commit to:

  • Protect member data in compliance with the Data Protection Act, 2019 (Kenya)
  • Use data only for Ufalme Wetu related transactions
  • Not share member data with third parties without consent, unless required by law

3.2 Member Register

The organization shall keep a register of its members. The following particulars of a registered member shall be included in the register:

  • Full name of a member
  • Physical address
  • National identity card (photocopy)
  • Date registered in the organization
  • Date membership in the organization ceases and reasons for the cessation

4. Loans and Credit Facilities

4.1 Eligibility

Loan eligibility is based on a member's savings, repayment history, and compliance with Ufalme Wetu rules.

4.2 Short-Term Loan/Advance

A member shall be eligible to take a short-term loan (ST Loan)/Advance of 2 times his/her shares, provided the following conditions are met:

  • The member must be in good standing (attends meetings, observes chama rules, saves regularly and has not defaulted on a previous debt)
  • The member must have saved with the group for at least 3 months prior to the month of asking for the advance
  • The guarantors must be at least 1/3 of membership (up to a max of 5 for groups with more than 15 members)
  • The member must pay the advance amount within 3 months with a 10% interest per month on reducing balance

4.3 Regular Loan

A member shall be eligible to take a loan of 3 times his/her shares, provided the following conditions are met:

  • The member must be in good standing
  • The member must have saved with the group for at least 3 months prior to the month of asking for the loan
  • A member cannot borrow with an existing un-cleared loan or advance
  • The guarantors must be at least 2/3 of membership (up to a max of 7 for groups with more than 15 members)
  • The member must pay the loan amount within the stipulated time with a 1.5-2% interest per month on reducing balance

Important: A member cannot borrow with an existing un-cleared loan or advance. Dumping of shares in order to increase one's limit is not allowed.

4.8 Security

Loans must be secured by deposits, guarantors, or other acceptable collateral.

5. Repayment

Members must adhere to agreed repayment schedules. Late or defaulted payments may attract penalties or recovery measures.

6. Default

In case of default, Ufalme Wetu may recover outstanding amounts from guarantors, deposits, or through legal recovery processes as allowed by Kenyan law.

Guarantors who undertake to cover debt in case of default will be responsible for the outstanding amount.

7. Share Dumping

Prohibited: Dumping of shares in order to increase one's limit is not allowed.

8. Dispute Resolution

Any dispute arising from Ufalme Wetu operations shall be resolved in the following manner:

  1. Through internal mediation by Ufalme Wetu management
  2. If unresolved, through the Tribunal
  3. Appeals may be made to the High Court of Kenya

9. Limitation of Liability

Ufalme Wetu, its officers, and employees shall not be held liable for losses arising from:

  • Member negligence or failure to comply with terms
  • Acts of God, system failures, or events beyond Ufalme Wetu's control
  • Misuse of services by the member

10. Amendments

Ufalme Wetu reserves the right to modify or update these Terms and Conditions at any time. Any changes will be communicated through official Ufalme Wetu's channels and will take effect upon publication.

11. Governing Law

These Terms and Conditions are governed by the Laws of Kenya and related regulations.

12. Acceptance

By becoming a member of Ufalme Wetu Welfare Programme, you confirm that you have read, understood, and agreed to these Terms and Conditions and the Ufalme's By-Laws.