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Legal

Terms of lending.

The terms under which Mobifarm Ventures Ltd extends loans to riders for the purchase of boda-bodas and tuk-tuks. These terms form part of every loan contract and are disclosed in plain English before any rider signs.

Draft — pending legal review.
These terms are a working draft prepared for Mobifarm Ventures Ltd based on Kenyan consumer and lending law. They must be reviewed and approved by a qualified Kenyan advocate before being issued to any rider. Last updated: May 2026.

1. Who these terms apply to

These terms apply to every loan granted by Mobifarm Ventures Ltd ("Mobifarm", "we", "us") to a borrower ("the rider", "you") for the purchase of a financed asset — typically a boda-boda (motorcycle) or tuk-tuk (three-wheeler) — under a written loan agreement signed by both parties.

These terms form part of your loan contract. Where these terms and your signed loan contract differ, the signed loan contract prevails.

2. Eligibility

To qualify for a Mobifarm loan, you must:

3. The loan product

3.1 Tenor

Loans are typically offered over 12, 18, or 24 months. Longer tenors are considered on a case-by-case basis.

3.2 Interest rate

Interest is charged at a flat rate of 3.5% per month calculated on the financed amount (bike price less deposit) for the full tenor of the loan. This rate is the standard rate; it may vary based on risk profile, and any variation is disclosed on page one of your loan contract before you sign.

3.3 Fees

Four fees apply to every loan. They are listed — with exact amounts — on page one of your loan contract:

No other fees are charged. Account statements, balance enquiries, schedule changes, and early repayment are all free.

3.4 Total cost of credit

The total cost of credit — the full amount you will pay, expressed in shillings — is stated in bold on page one of your loan contract. You will also see the effective annual rate as required by the Consumer Protection Act 2012.

4. Security and collateral

4.1 Joint registration

The financed asset is jointly registered in the names of the rider and Mobifarm with the National Transport and Safety Authority (NTSA). This is standard for all asset financing in Kenya and means the asset cannot be legally transferred or disposed of without Mobifarm's release of interest.

4.2 GPS tracking

Every financed asset carries a GPS tracker with authorised immobilisation capability. The tracker serves two purposes: recovery of stolen assets, and location of assets in serious default. Mobifarm does not monitor routine rider movements, and tracker location data is not shared with any third party other than law enforcement in response to a lawful order.

4.3 Insurance

The financed asset is insured with a Mobifarm-nominated insurer for the full life of the loan. Cover is described in section 6 below and in the accompanying insurance certificate.

4.4 Guarantor

Every loan requires one guarantor. The guarantor's liability is limited and is clearly described in the guarantor's separately signed undertaking. A guarantor is only contacted in the event of sustained default by the rider, and never before the rider has had a reasonable opportunity to cure the default.

5. Repayment

5.1 Payment channels

The primary repayment channel is M-Pesa Paybill 123456, with the rider's loan number as the account reference. In-person payments are accepted at Mobifarm's head office and at authorised partner dealers.

5.2 Repayment frequency

Riders may elect to repay daily, weekly, or monthly. The chosen frequency is recorded in the loan contract. Requests to change repayment frequency may be accommodated once per six-month period without penalty.

5.3 Early repayment

You may settle your loan in full at any time without penalty. The settlement amount is the outstanding principal plus interest accrued to the settlement day. Upon settlement, Mobifarm releases its interest on the joint registration within seven (7) business days, after which full title transfers to you.

5.4 Partial overpayment

Payments in excess of the scheduled instalment are applied to reduce principal, which reduces total interest paid and shortens the loan.

6. Insurance

Insurance is included in every loan and covers the financed asset for theft, total loss, and third-party liability at a minimum. The full scope of cover, exclusions, and excesses are set out in the insurance certificate issued at disbursement. Exclusions typically include negligent use, unlicensed operation, and use under the influence of alcohol or drugs.

Claims are processed by the insurer in accordance with the policy. Where a claim results in settlement of the loan balance, Mobifarm issues a release letter confirming the loan is closed.

7. Default and remedies

7.1 What constitutes default

A rider is in default if a scheduled payment remains outstanding beyond its due date and grace period. The grace period for each product is set out in the loan contract.

7.2 Our obligations on default

On a missed payment, we will:

  1. Attempt to contact you by phone within 48 hours of the missed due date.
  2. Offer, where appropriate, a restructure conversation to adjust the schedule to your current circumstances.
  3. Issue a written reminder (SMS and, where applicable, email) after seven days of non-payment.
  4. Issue a formal demand letter after a further period set out in the loan contract, before any repossession action is initiated.

7.3 Repossession

Repossession is a last resort, undertaken only after the steps in section 7.2 have been exhausted and the rider has been given reasonable opportunity to cure the default. Repossession is conducted in accordance with applicable Kenyan law, respects the rider's rights, and is carried out only during lawful hours.

After repossession, the rider retains the right to redeem the asset within a defined grace period (set out in the loan contract) by settling the outstanding balance. If the asset is sold, proceeds are applied to the outstanding balance, and any surplus is returned to the rider.

8. Data protection

We process personal data in accordance with the Kenya Data Protection Act 2019. See our full Data Protection policy for details on what we collect, why, how long we keep it, and your rights.

9. Complaints

If you are dissatisfied with any aspect of your loan or our service, you may raise a complaint as set out in our Complaints Procedure. You also retain the right to escalate to the Competition Authority of Kenya and, where applicable, the relevant sector regulator.

10. Assignment

Mobifarm may assign the benefit of your loan to a financing partner or securitisation vehicle. Such an assignment does not change the terms of your loan or the way you pay. You will be notified of any such assignment.

11. Governing law

These terms, and any loan contract to which they apply, are governed by the laws of the Republic of Kenya. Disputes are subject to the exclusive jurisdiction of the Kenyan courts.

12. Changes to these terms

Mobifarm may update these general terms from time to time. Existing loans continue on the terms agreed at signing; new loans are subject to the terms current at the date of signing. The most current version is always available at this URL.

Questions If you do not understand any part of these terms, please ask your officer to walk you through it before you sign. You can also email begin@mobifarm.co.ke or WhatsApp us.

Mobifarm Ventures Ltd · Registered in Kenya · Nairobi
Runda Shopping Center, 1st Floor, Suite 008
Last updated: May 2026