Foreign Investor Onboarding Process

1. Request for and Collection of KYC Documentation

The KYC documentation requested depends on the type of foreign lender - Individual or Institutional lender.

Individual:

  • Country of residence
  • Copy of identification document/passport
  • Tax Identification Number.
  • Contact information (email and postal address, telephone number)
  • Physical address
  • Bank details (Bank name, Branch Name, Account name & number or IBAN Number, Swift code, Bank Physical Address)

Institution:

  • Country of incorporation and operation.
  • Copy of official incorporation documentation.
  • Tax Identification Number.
  • Copies of identification documents/passports of the directors.
  • Business physical address and proof of physical address (utility bill, rental agreement or lease).
  • Contact information (email and postal address, telephone number)
  • Bank details (Bank name, Branch Name, Account name & number or IBAN Number, Swift code, Bank Physical Address)

2. Documentation Review

  • The documentation submitted in the above step is then reviewed by the Pezesha team to confirm the identity and authenticity of the lender.
  • Pezesha then performs further KYC checks (AML, PEP, criminal watchlists etc.) through various databases and where possible will request references from people who may know or may have worked with the particular individual or institution.

3. Signing Lending Agreement

Once the KYC is complete we send the lender an investment form which they will sign and send a scanned copy back to us to countersign.

4. Initial Deposit and Account creation

  • The lender will deposit the funds they intend to lend to a bank account owned and controlled by Pezesha Africa Limited (the bank details are provided in the investment form). Once the deposit has been confirmed, a lender account is created on the Pezesha platform and is set up as per the lenders preferences.
  • The lender is provided with the credentials to access the account. The lender can then track the performance of their portfolio from the account provided.

All lender queries and instructions are handled via email. The email address to direct all instructions and queries to lenders@pezesha.com.

5. Further Deposits

If the lender would like to make any further deposits the process is the same as for the first deposit.

Uses made of the information

  • The lender will send an instruction (by sending an email to lenders@pezesha.com ) that they would like to top up their account.
  • Once they receive a green light they will then deposit the amount they would like to the Pezesha Bank Account provided.
  • Once the funds are confirmed in the Pezesha Bank Account they will be credited to the lender's account on the Pezesha platform.

6. Withdrawals

If the lender would like to withdraw then the opposite would happen.

  • They will send an instruction (by sending an email to lenders@pezesha.com ) that they would like to withdraw their funds.
  • The instruction will include how much they would like to withdraw from their wallets.
  • Pezesha will confirm whether the wallet has sufficient funds for the withdrawal amount requested.
  • The lender will then confirm the bank account where they would like to receive their funds.
  • Pezesha will make the disbursement to the account provided and once the lender confirms receipt of the funds the funds are debited from their lender account on the Pezesha platform.

Transaction charges.

  • Pezesha levies a transaction charge of $18 at every withdrawal. This charge is to cater for the transaction fees incurred in disbursing the funds to the lender.
  • The withdrawal charges are withheld by the Pezesha platform at the point of withdrawal and the lender withdrawal is net of the transaction charge i.e. the maximum amount a lender can withdraw is equal to the total amount available in their wallet less withdrawal charges.
  • Any related FX or money transfer charges will be fully borne by the lender

The lender can also opt to receive interest on a periodic basis (Monthly, annually etc.).

Withholding Tax on Interest Income

  • Withholding tax is a tax that is deducted at source from individuals and institutions earning interest income.
  • The amount of tax deducted depends on the jurisdiction where the interest is earned regardless of the residence of the individual earning the interest.
  • In Kenya the withholding tax rate is 15% meaning anyone (foreign or local, individual or institution) is subject to the 15% withholding tax.
  • Pezesha will deduct the 15% tax from the interest earned by the lender and remit the amount to the relevant tax authorities.
  • The lender will receive interest net of the tax deducted i.e. 85%
  • Once the amount is paid to the authorities the lender will receive a withholding tax certificate indicating the amount of tax withheld and remitted.