Important Credit Information and New Loan Requirements Effective 5th June 2025

Dear Esteemed Members,

Warm greetings from Mzima Springs NWDT Sacco Ltd.

We are pleased to inform you of important updates regarding credit services and loan requirements that will take effect as outlined below:

1. Use of Mobile USSD*346# for Payments 

Members can now conveniently make deposits, loan repayments, share capital, and special savings contributions via mobile phone using the USSD code *346#. These payments will automatically update on your account statements.

Please Note: Kindly ensure that your mobile phone line has sufficient airtime when using the USSD service. Additionally, confirm that you have been successfully on boarded to the *346# platform

a)  Making Deposit Contributions; 

1. Dial *346#
2. Enter your 4-digit PIN
3. Select Option 3 (Deposit)
4. Choose Option 3 (Deposit Contribution Balance)
5. Select Option 1 (M-Pesa)
6. Enter Amount
7. Confirm and proceed via M-Pesa

The amount will automatically update to your deposit account. 

b)  Loan Repayments 

1. Dial *346#
2. Enter 4-digit PIN
3. Select Option 4 (Loans)
4. Choose Option 3 (Repay Loan)
5. Select loan type (Normal or Emergency)
6. Choose Option 1 (M-Pesa)
7. Enter Amount and confirm

The amount will automatically update to your loan account. 

c)  Special Savings Contributions 

1. Dial *346#
2. Enter PIN
3. Select Option 3 (Deposit)
4. Choose Option 4 (Special Savings Balance)
5. Use M-Pesa to make payment

Amount will automatically update to your special savings account. 

d)  Share Capital Contributions 

1. Dial *346#
2. Enter PIN
3. Select Option 2 (Share Capital)
4. Choose Option 4 (View Balance)
5. Use M-Pesa to contribute

Amount will automatically update to your share capital account. 

e)  Automation of Special Savings Withdrawals 

The Secretariat is in the final stages of implementing a system that will enable automatic withdrawals from your Special Savings account directly to your M-Pesa account. This enhancement will allow you to access your Special Savings at any time, on any day, without the need to send a request via email.

Once the service is fully operational, the Secretariat will formally communicate to all members with the relevant details and guidelines.

2.  Use of Mzima Springs Investment Title Deeds as Loan Security

Starting 4th July 2025, members with title deeds from Mzima Springs Investment Company can use them as collateral for loans. Key highlights:

1. Loan Amount: Up to 75% of the market value of the title
2. Valuation & Legal Costs: To be paid by the member or deducted from disbursed loan.
3. Valuers and Advocates: Only Sacco-approved valuers and lawyers will be The list of prequalified service providers will be available at the Secretariat.
4. All standard loan conditions (repayment capacity and deposit-based borrowing limits) will still apply.

3.  Revised Commission on Loan Offsets

Effective 4th July 2025, a new commission of 5% will apply on outstanding loan amounts when offsetting or topping up a loan, replacing the previous 2% charged on new loan payouts. This aligns with current industry practices.

4.  Change in Interest Rates for Long-Term Loans 

Also effective 4th July 2025, loans with repayment terms above 60 months will attract a revised interest rate of 13% per annum.

1. Loans below 60 months will continue at the current rate of 12%
2. Please note that the change in interest rates for long-term loans does not affect existing loans with a repayment period exceeding 60

We encourage all members to review these changes carefully and reach out to our office for any clarification or assistance.

Thank you for your continued support and cooperation.

Chairman – Mzima Springs Regulated Non-WDT Sacco Ltd Email: mzimasprings@strathmore.edu

Tel: 0703034331/0797686484

Cc: All Mzima Board Members