TO ALL MEMBERS

SUBJECT: CHANGES IN LOANS AND SAVING PRODUCTS

Date: 31st March 2026

The Board of Directors and Management of the SACCO wish to express their sincere appreciation for the continuous feedback you have shared through member forums, branch visits, digital platforms, member survey and other engagement sessions. Your input has been invaluable in helping us improve our products and services to meet your needs.

We are pleased to inform you that, based on your feedback and following a detailed review, several enhancements have been approved to make our lending services more accessible, flexible, and responsive to the current economic realities. They are:

1. Loan Eligibility Improvements

To make credit more accessible, the following member‑friendly adjustments have been made:

• The guarantorship multiplier has been increased from 2× to 3× member deposits.
• New members can now access loans after 3 months of active membership, down from 6 months.
• The 3‑month waiting period for lump‑sum deposits to qualify for loans has been removed.
• The Karibu Loan waiting period has been reduced from 2 months to 1 month for new members’

2. Additional Loan Security Options

a) Motor Vehicle Logbooks

Logbooks may now be used to secure/guarantee short‑term loans, under the following conditions:

• The loan repayment must not exceed 3 years.
• The age of the vehicle must not exceed 15 years.
• The maximum amount to be secured/guaranteed by the logbook is 30% of the motor vehicle’s forced value.
• The motor vehicle must be comprehensively insured and fitted with a car tracking device.

b) Property Title Deeds

To give members more flexibility:

• Members can now use the title deed of the property being purchased as loan security/guarantor.
• The third‑party title deeds (e.g., from a sibling) can also be used as security/guarantor for a loan long as the owner provides written consent.

3. Car Loan Product Enhancements

a) Commercial Vehicle Financing

The Car loan product has been expanded to support members already running commercial transport or related businesses.
Key improvements include:

• Loan for purchasing commercial vehicles.
• Eligible only for members already operating the specific business (e.g., matatu operators may apply for a matatu loan).
• Appraisal requires proof of the existing business income for the last 6 months.
• The vehicle being purchased will serve as security.
• Maximum repayment period: 4 years.
• Interest rate: 14.5% per annum on reducing balance.
• Maximum loan is based on 70% of the forced value of the commercial vehicle.
• The vehicle must be comprehensively insured and fitted with a tracking device for the period of the loan tenure.

b) Locally Used Vehicles

Members can now access loans to purchase locally used vehicles up to 8 years old, subject to a maximum of 70% of the forced value of the vehicle. The vehicle being purchased must be comprehensively insured and fitted with a tracking device for the period of the loan tenure.

4. Loan Restructuring Enhancement

Members restructuring their loans will benefit from Exemption from insurance fees during processing. This is because the restructuring facility has no net take‑home and is intended solely for consolidating existing loans to ease repayment.

5. Ekeza savings products

Based on persistent changes over recent months in financial market, including Central Bank Rate, Treasury Bills, government securities and money market instruments, the new rates applicable to Ekeza savings product have been reviewed as summarized below:

These changes reflect our ongoing commitment to improving member experience and ensuring our products remain competitive and responsive. All other existing terms and conditions not mentioned above for loan eligibility apply.

This product is to enable members have savings with the SACCO and in return earn interest based on the period the savings are held by the SACCO. The returns on the funds shall be applied as follows:

Effective date: The above changes take effect from April 1, 2026.

Thank you for your continued trust and membership.

Yours sincerely,

Jorim Oyago

Chief Executive Officer