PATO CAPITAL LIMITED
TERMS AND CONDITIONS OF USE
Version 2.0 | Effective Date: May 2026
Regulated by the Central Bank of Kenya under the Digital Credit Providers Regulations, 2022
These Terms and Conditions of Use ("Terms") govern your access to and use of all products, services, digital platforms, mobile applications, USSD channels, and portals operated by Pato Capital Limited ("Pato Capital", "PCL", "we", "our", or "us"), a company incorporated in Kenya and licensed by the Central Bank of Kenya (CBK) as a Digital Credit Provider under the Non-Deposit Taking Credit Providers Act, 2023 and the CBK Digital Credit Providers Regulations, 2022.
By downloading, installing, registering for, or using any Pato Capital service, application, or platform, you ("you", "User", "Borrower", "Partner", or "Client") unconditionally agree to be bound by these Terms, our Privacy Policy, any product-specific loan agreement, and all applicable Kenyan laws and regulations. If you do not agree, you must not use our services.
Important notice: These Terms constitute a legally binding contract. Please read them carefully before proceeding. Pato Capital reserves the right to amend these Terms at any time with notice as required by law.
In these Terms, the following definitions apply:
"Account" means a registered user profile on any Pato Capital platform or system.
"APR" means the Annualised Percentage Rate computed in accordance with Section 27(2) of the CBK Digital Credit Providers Regulations, 2022.
"Borrower" means any natural person or entity that applies for or receives a loan from Pato Capital.
"Check-off Deduction" means a payroll deduction arrangement between Pato Capital, an Employer Aggregator, and a Borrower for loan repayment.
"CRB" means any Credit Reference Bureau licensed in Kenya, including TransUnion, Metropol, and Creditinfo.
"Fund Administration Client" means a chama, SACCO, employer fund, or similar group that has engaged Pato Capital under a Fund Administration Agreement.
"Loan Agreement" means a specific loan contract between Pato Capital and a Borrower setting out the terms of an individual credit facility.
"Loan Product" means any of the credit products offered by Pato Capital as described in Clause 5 of these Terms.
"M-Pesa" means the mobile money service operated by Safaricom PLC.
"NDTCP Regulations" means the Non-Deposit Taking Credit Providers Regulations, 2026 (gazetted).
"Platform" means the Pato Capital mobile application, USSD system, web portal, or any other digital interface through which services are accessed.
"Processing Fee" means a one-time fee charged at loan disbursement as disclosed in the applicable product schedule.
"Two-Thirds Rule" means the limitation under Section 19(1) of the Employment Act, Cap 226, that deductions from an employee's salary shall not exceed two-thirds of gross monthly earnings.
To be eligible to use Pato Capital's credit services, you must satisfy all of the following requirements at the time of application and throughout the duration of your loan:
You are a natural person aged 18 years or older, or a legally recognised entity (including a chama, SACCO, or company) with capacity to contract under Kenyan law.
You hold a valid Kenyan National Identity Card, valid Passport, Military Identity Card, or Alien Identity Card.
You hold an active M-Pesa registered mobile number in your name.
You are not subject to any active adverse CRB listing that disqualifies you from credit under our credit policy, unless exceptional circumstances apply.
You have not been previously blacklisted by Pato Capital for fraud, misrepresentation, or material breach of any prior loan agreement.
For employer-linked products: your employer has entered into an Employer Aggregator Agreement with Pato Capital.
For invoice financing products: the invoice payer or buyer organisation has been approved by Pato Capital.
For pension-backed products: your pension or annuity administrator has entered into a formal arrangement with Pato Capital.
For insurance-backed products: you hold a qualifying in-force life insurance policy with an insurer that has entered into an irrevocable assignment arrangement with Pato Capital.
Pato Capital reserves the right to verify eligibility at any stage and to decline or terminate access to services where eligibility requirements are not met.
4.1 Registration: To access Pato Capital's services, you must register an account using your verified personal information. You must provide accurate, complete, and current information. Providing false or misleading information is grounds for immediate account termination and may constitute an offence under the Proceeds of Crime and Anti-Money Laundering Act, 2009.
4.2 One Account Per Person: Each natural person may hold only one active Account. Registration of multiple accounts is strictly prohibited and will result in permanent account closure and potential CRB reporting.
4.3 Security: You are responsible for maintaining the confidentiality of your login credentials, PIN, or OTP. You must notify us immediately at info@patocapital.com or +254 108 238171 if you suspect any unauthorised access to your Account.
4.4 Consent to KYC Verification: By registering, you authorise Pato Capital to verify your identity using the Integrated Population Registration System (IPRS), CRBs, M-Pesa records, and any other verification services as required by law. You waive any confidentiality rights over personal data to the extent necessary for credit assessment and KYC compliance.
4.5 Account Updates: You must promptly update your account information whenever it changes. Failure to maintain current information may result in suspension of services.
Pato Capital offers the following credit products and services, each subject to specific eligibility criteria, product terms, and a Loan Agreement:
A short-term salary advance for employees of approved employer organisations, repaid via check-off deduction from monthly salary. The loan amount is subject to a 40% affordability cap on net disposable income after statutory deductions and subject to the Two-Thirds Rule under the Employment Act. Repayment is made directly from payroll by the employer to Pato Capital.
A short-term credit facility for small traders and micro-entrepreneurs, disbursed via M-Pesa. This product is designed for working capital and inventory financing for informal and semi-formal traders with verifiable business activity.
A short-term inventory loan for traders who self-register on the Pato Capital platform. Designed for stock and working capital financing over short cycles, disbursed to the borrower's M-Pesa wallet.
An inventory loan for traders onboarded through an approved partner organisation (distributor, supplier, or aggregator). Partner organisations support the credit assessment and may provide soft guarantees or collection assistance.
Financing secured against verified trade invoices owed by approved buyer organisations. The loan advance is up to 85% of the face value of the invoice. Repayment is made directly by the buyer organisation to Pato Capital on the invoice due date. Only invoices from pre-approved buyer organisations qualify.
A credit facility for active pensioners or annuitants drawing regular income from an approved pension or annuity administrator. Repayment is deducted from the monthly pension payment before disbursement to the pensioner. This product is structured as a loan with pension deduction and not as a direct assignment of pension benefits, in compliance with Section 38 of the Retirement Benefits Act.
A credit facility advanced against the surrender value of an in-force life insurance policy (endowment, whole life, anticipated endowment, or unit-linked). The advance is up to 80% of current surrender value. You must irrevocably assign your policy to Pato Capital as security. On default, lapse, or policy maturity, the insurer will net the outstanding loan balance against policy proceeds before paying you.
For approved chamas, SACCOs, employer investment clubs, and similar groups acting as Fund Administration Clients, Pato Capital provides technology, compliance, credit assessment, disbursement, and collections infrastructure. The group provides its own capital and membership base. Pato Capital charges a fund administration fee as specified in the applicable Fund Administration Agreement. Group members access credit products under the umbrella of their group's fund arrangement.
Pato Capital may introduce additional products from time to time, subject to CBK pre-approval under Regulation 26 of the CBK Digital Credit Providers Regulations, 2022. All new products will be communicated to users with adequate advance notice.
6.1 Application: You may apply for any eligible loan product through the Pato Capital mobile application, USSD, or any other approved channel. Applications must be completed honestly and in full.
6.2 Credit Assessment: All applications are assessed using Pato Capital's credit scoring model, which evaluates factors including identity verification, CRB history, income, affordability, and product-specific criteria. You have the right to request a plain-language explanation of any adverse credit decision within 30 days of the decision.
6.3 No Guarantee of Approval: Submission of an application does not guarantee loan approval. Pato Capital reserves the right to decline any application without being required to disclose detailed reasons beyond what is required by law.
6.4 Accuracy of Information: By submitting an application, you certify that all information provided is true, accurate, and complete. Any misrepresentation will result in immediate termination of the facility, demand for immediate repayment, and may be reported to law enforcement.
6.5 Human Override: All automated credit decisions are subject to review by a Pato Capital Credit Officer, in compliance with Regulation 57 of the NDTCP Regulations, 2026. You may request a human review of any automated decision.
7.1 Transparency: Pato Capital is committed to transparent pricing. Before you accept any loan, we will disclose:
The loan principal amount.
The processing fee (expressed as a percentage of principal).
The interest rate (expressed as a flat rate per 30-day period or applicable tenor).
The total repayment amount.
The Annualised Percentage Rate (APR) computed in accordance with CBK Regulations.
The loan tenor in days.
Any penalty charges applicable in the event of late payment.
7.2 Processing Fee: A non-refundable processing fee is deducted from the loan disbursement amount. The applicable processing fee is specified in your Loan Agreement and product schedule.
7.3 Interest: Interest is charged as a flat rate on the principal for the applicable loan tenor. The current standard interest rate across all consumer products is 9% per 30-day period unless a different rate is specified in your individual Loan Agreement or you qualify for a loyalty rate reduction.
7.4 Excise Duty: A government excise duty of 20% applies to the processing fee component and is included in the charges disclosed to you.
7.5 Loyalty Rate Graduation: Returning borrowers who have demonstrated consistent repayment history may qualify for a reduced interest rate (8% or 7% per 30-day period) as a loyalty benefit. Eligibility for rate graduation is determined by Pato Capital's credit policy.
7.6 Penalty for Late Payment: A one-time late payment penalty applies where repayment is not received by the due date. The penalty rate and structure are disclosed in your Loan Agreement. Penalty interest ceases to accrue when the total of interest and penalties equals the principal (in duplum rule, as required by applicable law).
7.7 In Duplum Rule: In accordance with applicable Kenyan law, Pato Capital shall not charge or collect interest, penalties, and fees that in total exceed the original principal amount of the loan. Our loan management system enforces this cap automatically.
7.8 No Hidden Fees: Pato Capital does not charge any fees not disclosed in the loan offer. You will not be charged for loan application, account registration, or CRB consent separately beyond what is included in the processing fee.
8.1 Disbursement Channel: Approved loans are disbursed to your registered M-Pesa wallet. For employer-linked and fund administration products, disbursement channels may differ as specified in the applicable Loan Agreement.
8.2 Disbursement Amount: The amount disbursed to you is the principal minus the processing fee and any other upfront deductions disclosed in your Loan Agreement.
8.3 Cooling-Off Period: You have a 24-hour cooling-off period from the time of disbursement within which you may cancel the loan and repay the principal in full without incurring interest. The processing fee is non-refundable after disbursement has occurred.
8.4 Timing: Disbursement typically occurs within one business day of loan approval, subject to M-Pesa availability and compliance clearances. Pato Capital is not liable for delays caused by M-Pesa system outages or third-party processing delays.
8.5 Rollover: Pato Capital does not automatically roll over loans. Any extension of a loan facility must be expressly agreed by both parties in writing before the original due date.
9.1 Repayment Obligation: You are obligated to repay the full amount due (principal, interest, fees, and applicable penalty) by the due date specified in your Loan Agreement.
9.2 Repayment Channels: You may repay via:
M-Pesa Paybill: Pato Capital's business number (as communicated in your loan offer and account).
M-Pesa STK Push: A payment prompt sent to your registered phone.
Employer check-off (for employer-linked products): Automatic deduction from payroll by your employer.
Invoice payer direct payment (for invoice financing): Direct payment by the buyer to Pato Capital on invoice due date.
Pension administrator deduction (for pension-backed products): Automatic deduction from monthly pension disbursement.
9.3 Partial Payments: Partial payments are accepted but do not extend the due date. Partial payments are applied first to fees and penalties, then to interest, then to principal.
9.4 Early Repayment: You may repay your loan in full at any time before the due date without penalty. Early repayment does not entitle you to a refund of the processing fee or any portion of interest already accrued.
9.5 Employer Check-off Obligation: Where your loan is linked to an employer check-off arrangement, you authorise your employer to deduct the applicable repayment amount from your salary and remit it to Pato Capital. This deduction is made subject to the Two-Thirds Rule under Section 19(1) of the Employment Act. You must promptly notify Pato Capital of any change in employment or salary that may affect check-off arrangements.
9.6 Change of Employment: If you leave your employer before full loan repayment, you remain personally liable for the outstanding balance. Pato Capital may immediately demand repayment of the full outstanding balance upon receipt of notice of your employment termination or resignation.
10.1 Events of Default: You will be in default if:
You fail to make full repayment by the due date.
You provide false, misleading, or fraudulent information at any time.
You become insolvent or are subject to bankruptcy proceedings.
Any information you provided materially changes in a way that adversely affects your repayment capacity.
Your employment is terminated and no alternative repayment arrangement is agreed.
10.2 Collections: Upon default, Pato Capital may take any or all of the following actions:
Send automated SMS/IVR repayment reminders to your registered number.
Contact you by phone between the hours of 8:00 AM and 6:00 PM EAT, Monday to Saturday.
Contact your employer (where applicable) for check-off enforcement.
List the outstanding debt with licensed Debt Collection Agents.
Initiate legal proceedings for debt recovery.
Important: Pato Capital will not: contact you outside permitted hours; contact your relatives, friends, or colleagues for collection purposes; share your debt status publicly; or use any harassing, abusive, or threatening language in collection communications. Any such conduct should be reported to us immediately.
10.3 CRB Reporting: In accordance with CBK regulations and the Credit Reference Bureau Regulations, Pato Capital will submit positive credit information (repayment history) and negative information (defaults) to licensed CRBs. A negative CRB listing will be made:
After 30 days of non-payment (PAR30 threshold).
With written or SMS notice sent to you before or at the time of listing.
In accordance with the applicable CRB Regulations.
10.4 Delisting: Upon full repayment of all amounts due, Pato Capital will submit a delisting request to the relevant CRBs within 5 business days of receiving your payment.
10.5 Legal Recovery: Pato Capital reserves the right to commence legal proceedings in a court of competent jurisdiction in Kenya for recovery of outstanding amounts, together with legal costs.
You must not, in connection with your use of Pato Capital's services:
Provide false, fraudulent, or misleading information at any time.
Use a borrowed or another person's identity to register or apply for credit.
Collude with any other person to misrepresent your financial position.
Interfere with or circumvent any check-off, repayment, or security arrangement.
Use loan proceeds for purposes prohibited by law, including financing of terrorism, money laundering, or any criminal activity.
Attempt to access another user's account without authorisation.
Reverse-engineer, copy, or reproduce any part of the Pato Capital platform.
Engage in any conduct that disrupts, degrades, or impairs the operation of the Platform.
Violation of any of the above will result in immediate account closure, demand for full repayment, reporting to relevant authorities, and may result in criminal liability.
Your use of Pato Capital's services involves the collection and processing of personal data. By agreeing to these Terms, you acknowledge and consent to the collection, use, processing, and sharing of your personal data as described in our Privacy Policy, which forms part of these Terms and is available at www.patocapital.com.
Specific data consents you grant include:
Consent for Pato Capital to access and read relevant SMS messages on your device for the purpose of generating M-Pesa transaction summaries to support credit assessment.
Consent for identity verification through IPRS and biometric matching.
Consent for CRB enquiries and reporting (positive and negative).
Consent for payroll data access for employer check-off products.
Consent for pension or annuity data access for pension-backed products.
Consent for invoice verification with approved buyer organisations.
Consent for Pato Capital to share your data with agents, partner organisations, legal representatives, and regulators as required.
You may withdraw any consent at any time by contacting us, noting that withdrawal of consent may affect your eligibility for certain loan products. Withdrawal does not affect the lawfulness of processing carried out before the withdrawal or your obligations under any existing Loan Agreement.
13.1 Consumer Rights: You have the following rights in relation to your credit facility:
The right to receive a pre-contractual disclosure of all loan terms, fees, and APR before accepting any loan.
The right to a plain-language explanation of any adverse credit decision.
The right to a 24-hour cooling-off period after disbursement.
The right to repay early without penalty.
The right to be treated with dignity and respect in all collection communications.
The right to dispute any CRB listing.
The right to access your own credit data.
13.2 Complaints Process: If you have a complaint, please contact us through any of the following channels:
In-app complaint submission.
Email: info@patocapital.com
Phone: +254 108 238171 (Monday to Friday, 8:00 AM to 6:00 PM EAT).
Web: www.patocapital.com/complaints
13.3 Complaint SLA:
Day 1: Your complaint is logged and an acknowledgement reference is issued within 2 hours.
Day 3: A Pato Capital officer contacts you with the investigation status.
Day 30: All complaints are resolved within 30 days as required by Regulation 38 of the NDTCP Regulations, 2026.
13.4 Escalation: If you remain dissatisfied after our final response, you may escalate your complaint to the CBK Consumer Protection Department. Contact details are available on the CBK website at www.centralbank.go.ke.
All content, software, trademarks, trade names, logos, and intellectual property on the Pato Capital Platform are owned by or licensed to Pato Capital Limited. Nothing in these Terms grants you any ownership or licence over Pato Capital's intellectual property beyond a limited, non-exclusive, non-transferable licence to use the Platform for the purposes described in these Terms.
15.1 Pato Capital's liability to you in connection with these Terms or any loan product is limited to the extent permitted by Kenyan law.
15.2 Pato Capital is not liable for: losses arising from inaccurate information you provided; losses due to M-Pesa or third-party system outages beyond our reasonable control; or any indirect, consequential, or special damages.
15.3 Pato Capital is not liable for any loss arising from your failure to comply with these Terms or the terms of your Loan Agreement.
Pato Capital reserves the right to amend these Terms at any time, subject to the following:
Material changes will be communicated to you via SMS, in-app notification, or email at least 30 days before they take effect.
Any change to product pricing or charges requires CBK pre-approval under Regulation 26 of the CBK Digital Credit Providers Regulations, 2022.
Your continued use of Pato Capital's services after the effective date of amendments constitutes your acceptance of the amended Terms.
If you do not accept amended Terms, you must stop using the services and repay any outstanding loan in accordance with the original terms.
These Terms are governed by and construed in accordance with the laws of the Republic of Kenya. Any dispute arising out of or in connection with these Terms shall be subject to the exclusive jurisdiction of the courts of Kenya. Applicable legislation includes but is not limited to the Non-Deposit Taking Credit Providers Act, 2023; the CBK Digital Credit Providers Regulations, 2022; the NDTCP Regulations, 2026; the Data Protection Act, 2019; the Consumer Protection Act, 2012; the Employment Act, Cap 226; the Electronic Transactions Act, 2017; and the Proceeds of Crime and Anti-Money Laundering Act, 2009.
18.1 Severability: If any provision of these Terms is found to be unlawful, void, or unenforceable, the remaining provisions continue in full force.
18.2 Waiver: Failure by Pato Capital to enforce any provision of these Terms does not constitute a waiver of that provision or any other.
18.3 Entire Agreement: These Terms, together with the Privacy Policy and your Loan Agreement(s), constitute the entire agreement between you and Pato Capital in relation to the subject matter hereof.
18.4 Language: These Terms are in English. In the event of any inconsistency between English and any translated version, the English version prevails.
Pato Capital Limited
PO BOX 51957-00100, Nairobi, Kenya
Email: info@patocapital.com
Website: www.patocapital.com
Phone: +254 108 238171
Complaints: www.patocapital.com/complaints
Regulated by the Central Bank of Kenya. CBK Licence No: CBK/DCP/2025/182.
Pato Capital Limited | Borrow Wisely. Grow Steadily. Protect Fully.