Deposit Terms and Conditions
These Deposit Terms and Conditions are supplementary to the Umba Microfinance Bank Account opening terms and conditions. In this Agreement "Umba MFB" refers to Umba Microfinance Bank. "We", "we" or "the customer(s)" include an individual, joint, body corporate, partnership, association or trust under whose name the deposit will be or has been opened and established with Umba MFB.
1. Customer Instructions and Application Acceptance
1.1 I/We clearly agree that Umba MFB needs to receive clear and written instructions from us/I to initiate and establish "the Deposit" on behalf of me/us. However, I/We can opt to fix the deposit via the Umba app.
1.2 Umba MFB shall not be obliged to accept from me/us any oral or telephone instructions. We agree to indemnify Umba MFB against any improper/fraudulent deposit instruction purported to be received by me/us.
1.3 I/We will confirm that Umba MFB will have the authority and capacity to determine the validity of the deposit.
1.4 If the deposit is to be fixed through written instructions, I/We shall sign and return to Umba MFB all written confirmations upon acceptance of the deposit. Failure to do so shall not prejudice Umba MFB's right to rely on the acceptance thereof.
2. Exemption from Liability
2.1 In the event of our failure to perform any of my/our obligations under this contract, I/We understand the same shall not be held liable by Umba MFB and the same shall not be a cause of breach unless the failure or delay by Umba MFB has been occasioned by the negligence of Umba MFB in the absence of material manifest error.
2.2 Umba MFB shall not be liable in the event of delayed or omitted delivery of funds due to events beyond its control or for reason of force majeure, or of the unavailability of funds credited to my/our account(s) due to restrictions on convertibility or transferability, requisitions, involuntary transfers, acts of war or civil strife, or other similar causes beyond its control, in which circumstances no other branch, subsidiary or affiliate of Umba MFB shall be responsible thereof.
3. Cut-off Times and Banking Hours
3.1 If the deposit is fixed via the written instructions, upon receipt of full payment and the completed Deposit Placement application herein, the Deposit shall be effected for the same business value day if received during business hours of any business day or for next business day value if received after business hours of any business day (as Umba MFB may determine from time to time).
3.2 In these terms and conditions "business day" means a day (other than Saturday and Sunday), on which Umba MFB is open for business and the foreign exchange in the country of the currency of the Deposit is open for business.
3.3 In these terms and conditions "business hours" means 8.00 a.m. – 5.00 p.m.
4. Conflicts
4.1 In the event of any conflict between the Account Opening terms and conditions and the Deposit Terms and Conditions, the Deposit terms and conditions shall prevail. It is hereby agreed and understood that this contract shall be governed by and construed in accordance with Umba MFB terms and conditions.
5. Off-setting Contracts and Novation Netting
5.1 In addition to any lien or similar to which Umba MFB as bankers may be entitled by Laws of Kenya, Umba MFB may at any time and without notice combine or consolidate all or any of my/our deposit accounts with other liabilities to Umba MFB and set-off or transfer any sum or sums standing to the credit, including but not limited to cash, cheques, valuables, deposits, securities, negotiable instruments or other assets belonging to me/us with Umba MFB or to towards satisfaction of my/our liabilities to Umba MFB on any collateral respect whether such liabilities be actual or contingent, primary or collateral and several or joint.
5.2 Umba MFB is, in addition to any other right, hereby authorized to set-off any losses incurred by Umba MFB against any of my/our accounts.
6. Deposit Renewal
6.1 For fixed deposits fixed using the written instructions, upon maturity of the Deposit, the funds shall be treated as per the option selected by the customer on the Fixed Deposit Application. Umba MFB reserves the right not to accept or renew the Deposit.
7. Payments
7.1 Interest on the Deposit and any renewed Deposit shall be paid at Umba MFB's (Kenya) rate prevailing on the date of renewal (as the case may be), without notifying me/us, as calculated and credited on such basis and in accordance with such formula as Umba MFB may select at its sole discretion, provided that Umba MFB shall not be obliged to pay any such interest if I/We breach any warranty, Declaration term or condition contained in this form.
7.2 Interest on deposits will be paid less applicable taxes, unless the customer(s) are exempted.
7.3 The interest is payable solely at Umba MFB and is subject to the laws at any time prevailing in the Republic of Kenya.
7.4 No third-party payments will be made by Umba MFB for non-account holders on maturity of deposit proceeds.
8. Assignment / Transfer
This contract is not assignable without the written consent of Umba MFB.
9. Termination / Early Withdrawal
9.1 Withdrawal of the Deposit and/or accrued interest, whether partially or fully, before the maturity date, may be effected only with Umba MFB consent upon such reasonable terms and conditions as Umba MFB may impose in relation thereto, including and without being limited to the requirement that a minimum amount or the entire deposit and interest be withdrawn or the levy of a reasonable administrative or service charge.
9.2 Umba MFB is hereby authorized to impose penalties at its own discretion for any withdrawal made prior to maturity or without due notice under this Deposit.
10. Governing Laws and Jurisdiction
10.1 The performance of this contract by Umba MFB obligation to deliver the monies mentioned herein is subject to all laws, regulations, decrees, administrative rules and orders of the Republic of Kenya and the Central Bank of Kenya now or hereafter affecting the same. I/We hereby agree to indemnify Umba MFB and save it harmless from any loss which Umba MFB may incur with regards to this contract by reason of any laws, decrees, administrative rules or orders.
10.2 The parties hereby submit to the exclusive jurisdiction of the Courts of Kenya.
10.3 Death/mental incapacity of sole account holder: The Bank will not be liable to act on any instructions given until duly confirmed letters of administration are availed. In the case of mental incapacity, a court order appointing a guardian ad litem must be availed for authority to operate the account.
Contact Information
If you have any questions about these Terms, please contact us at kenyasupport@umba.com.
Last Updated: January 2025