Escrow Terms

These Escrow Terms explain how escrow services operate on Jiji.co.ke (the “Platform” or “Jiji”) for both buyers and sellers. The escrow service allows payments for goods to be held securely by an independent, licensed third-party escrow provider until the transaction is successfully completed. This provides a layer of trust and protection for both parties during the transaction.

This document is divided into two distinct sections:

• Section A – Buyer Escrow Terms: Explains how the service works for buyers, including when payments are held, when funds are released, and how disputes are handled.
• Section B – Seller Escrow Terms: Describes the responsibilities of sellers, including delivery requirements, payout conditions, and compliance obligations.

By proceeding with a transaction using escrow on the Platform, you confirm that you have read, understood, and agreed to these Escrow Terms, as well as the Jiji Terms of Use and any applicable policies. If you do not agree, please do not use the escrow service.

By using escrow, you agree to the relevant data sharing outlined in our Privacy Policy.

PLEASE NOTE THAT JIJI IS NOT THE ESCROW PROVIDER AND DOES NOT HOLD OR CONTROL THE FUNDS. ESCROW SERVICES ARE PROVIDED BY A LICENSED THIRD-PARTY PAYMENT OR ESCROW PROVIDER IN ACCORDANCE WITH KENYAN LAW (“ESCROW AGENT”).

Escrow Agent: Escrow services on Jiji are powered by HoneyCoin, a trusted third-party payment partner. In Kenya, HoneyCoin operates through Quicknode Technologies Limited, which works with a licensed financial institution — Choice Microfinance Bank Limited. All payments are securely held and managed by Choice Microfinance Bank, which is regulated by the Central Bank of Kenya. Quicknode and HoneyCoin act as technical partners, while Choice Bank ensures compliance with Kenyan financial regulations.

Any matters not expressly addressed in these Escrow Terms shall be governed by the Jiji Terms of Use and other applicable Platform policies. In the event of a conflict, the Terms of Use shall prevail unless specifically stated otherwise in these Escrow Terms. All time references are based on East Africa Time (EAT).

The Platform reserves the right to update or amend these Escrow Terms from time to time. You will be notified of material changes, and continued use of the escrow service after such changes constitutes acceptance of the revised terms.

For questions or concerns regarding escrow transactions, you may contact our support team at support@jiji.co.ke.

Section A – Buyer Escrow Terms

For purposes of these Escrow Terms, the term “Buyer” refers to any registered user of the Platform who purchases a product or service listed by a third-party seller and opts to use the escrow service facilitated through the Platform.

1. Escrow Service Overview

1.1. When you purchase an item through the Platform, your payment may be temporarily held in escrow by the Escrow Agent until the transaction is completed in accordance with these Escrow Terms. This service is designed to protect both the buyer and the seller by ensuring that funds are only released when the agreed-upon conditions of the transaction have been fulfilled.

1.2. The Escrow Agent operates independently from the Platform and is responsible for receiving, holding, and disbursing funds under instructions provided through the Platform. The Platform facilitates this process but does not itself hold, manage, or transfer user funds.

1.3. The escrow service protects the Buyer’s funds from being released until confirmed delivery of the agreed item or service. However, it does not insure against items that are accurately delivered but subsequently fail, expire, or degrade, unless such issues fall within the Platform’s dispute policy.

2. When Funds Are Held

2.1. Once you, the Buyer, initiate and complete payment for an item listed on the Platform, the full amount (including any applicable escrow or service fees) will be transferred to and securely held by the Escrow Agent in a segregated escrow account.

2.2. Upon confirmation of payment, the Seller will be notified and is required to ship or deliver the item in accordance with the listing and applicable platform policies.

2.3. The funds will remain in escrow and will not be released to the Seller until the conditions set out in Section 3 below are met.

3. Releasing Funds

3.1. After the Seller has marked the item as shipped or delivered, you will be prompted to confirm receipt of the item through your account on the Platform.

3.2. If you confirm successful receipt of the item, the Escrow Agent will release the held funds to the Seller.

3.3. If you do not confirm receipt or raise a dispute within three (3) business days from the date the delivery is marked as complete (or from the last tracking update showing delivery), the transaction will be deemed completed and the funds will be automatically released to the seller at the close of the third full business day from when the item was marked as delivered.

3.4. If a dispute is raised within the three-day window, the funds will remain in escrow until the dispute is resolved in accordance with the Platform’s dispute resolution procedures.

4. Disputes

4.1. If you believe that the item you received is not as described, was not delivered, or is otherwise defective, you must initiate a dispute through the Platform within three (3) business days from the date the item is marked as delivered.

4.2. To initiate a dispute, you may be required to submit supporting evidence, including but not limited to photographs, correspondence, and delivery records. The Platform will assess the dispute and issue instructions to the Escrow Agent to either release the funds to the Seller or refund you, based on the outcome.

4.3. All pre-sale, post-sale, and dispute-related communication must take place within the Platform’s messaging system. External communication may not be considered as valid evidence unless otherwise approved. 

4.4. If you believe a dispute decision was made in error, you may request a second-level review by contacting support@jiji.co.ke within 2 business days of the decision. The outcome of the second-level review is final.

4.5. The Platform’s decision in such disputes is final and binding, and the Escrow Agent will act strictly in accordance with those instructions.

5. Fees

5.1. A service fee for using the escrow facility may apply. The applicable fee amount or percentage will be disclosed to you at checkout prior to payment.

5.2. Unless stated otherwise, the escrow fee is deducted from the payment amount held in escrow and is non-refundable once the Seller has shipped or delivered the item.

5.3. If the transaction is canceled before the Seller dispatches the item, the escrow fee may be refunded at the Platform’s discretion.

6. Refunds and Chargebacks

6.1. If the Seller cancels the transaction, fails to ship the item, or if a dispute is resolved in your favor, the Platform will instruct the Escrow Agent to return the full amount held in escrow (minus any applicable fees, if any) to your original payment method.

6.2. Refunds are typically processed within a reasonable timeframe, depending on the payment method and banking partners involved.

6.3. In the event of partial fulfillment or agreed partial returns, the Platform may authorize a partial refund from escrow. Both parties must confirm the agreed amount in writing via the Platform.

6.4. The use of the escrow service does not affect your rights to initiate a chargeback or payment dispute with your card issuer or payment provider.However, initiating a chargeback after the funds have been released to the Seller may violate Platform policies and result in suspension or termination of your account.

7. Identification and Compliance

7.1. You may be required to verify your identity by submitting personal information or official documents, such as a government-issued ID, phone number, or payment details.

7.2. The Platform and the Escrow Agent reserve the right to request this information in order to comply with applicable laws and regulations, including the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA) and the Data Protection Act, 2019.

7.3. In some cases, enhanced due diligence (EDD) may be required, especially for high-value transactions, repeated disputes, or flagged activity. This may involve additional verification steps including video identification or in-person verification.

7.4. By using the escrow service, you consent to the collection, use, and sharing of your personal data with the licensed escrow provider for these purposes.

8. Platform’s Role and Liability

8.1. The Platform facilitates access to the escrow service but is not the escrow provider, and does not hold or control funds.

8.2. The Platform is not responsible for the actions of the Seller or the Escrow Agent, and provides no guarantees regarding the quality, condition, legality, or delivery of items listed by sellers.

8.3.Except where required by law, the Platform’s liability in connection with escrow transactions is strictly limited.

8.4. The Platform is not liable for delays, losses, or disputes arising from force majeure events, including but not limited to internet outages, strikes, civil unrest, or natural disasters that affect the delivery or confirmation process.

8.5. By using the escrow service, you understand and accept that: (i) The Platform does not verify the authenticity, legality, or quality of goods or services listed by users; (ii) Escrow only protects funds during the payment and delivery phase; (iii) You transact with third parties at your own risk; (iv) The Platform does not guarantee the performance, reliability, or identity of other users.

9. Buyer Warranties and Responsibilities

9.1. By using the escrow service as a Buyer, you represent and warrant that: (i) You are legally eligible to enter into a binding transaction; (ii) All information you provide, including delivery and payment details, is accurate and truthful; (iii) You are acting in good faith and have the intention and ability to pay for the item or service; (iv) You will not use the escrow service to engage in fraud, chargeback abuse, or any unlawful activity.

9.2. If you violate these warranties, the Platform may take appropriate action, including: (i) Freezing or reversing the transaction; (ii) Suspending or terminating your account; (ii) Reporting suspicious activity to relevant authorities or financial institutions.

9.3. You agree to indemnify and hold harmless the Platform, its affiliates, officers, employees, and partners from any claims, losses, damages, liabilities, or costs arising from your use of the escrow service, your breach of these Escrow Terms, or any unlawful activity you engage in through the Platform.

10. Prohibited Activities

10.1. You agree not to use the escrow service for any unlawful or prohibited purposes, including but not limited to: (i) Engaging in fraudulent transactions or false listings; (ii) Attempting to circumvent payment or escrow mechanisms; (iii) Money laundering, terrorist financing, or any activity in violation of applicable law; (iv) Purchasing or selling illegal, restricted, or counterfeit items; (v) Coordinating off-platform payments to avoid escrow fees.

10.2. The Platform reserves the right to suspend or permanently ban any account involved in prohibited activity, report such activity to the relevant authorities, and withhold or reverse escrow funds where required by law.

Section B – Seller Escrow Terms

For purposes of these Escrow Terms, the term “Seller” refers to any registered user of the Platform who lists goods or services for sale and agrees to use the escrow service provided through a licensed third-party escrow agent to receive payment from Buyers. 

1. Enrolment

1.1. By listing an item or service on the Platform, you, the Seller, agree to participate in the escrow process for all applicable transactions facilitated through the Platform. You acknowledge that payments made by Buyers will be held by the Escrow Agent until the delivery conditions outlined in these Escrow Terms have been met. Use of the Platform’s escrow functionality constitutes your acceptance of these terms.

2. Shipment and Tracking

2.1. Following confirmation that a Buyer’s payment has been received and held in escrow, you are required to dispatch the item within the designated timeframe stated in the listing or applicable Platform policies.

2.2. You must upload a valid tracking number to your Seller dashboard immediately after dispatch. The Platform currently supports two types of delivery partner integration:

1. Direct Integration: If the Platform is integrated with a delivery service provider (e.g., via API), shipment status will be updated automatically based on real-time tracking data received from the provider.
2. Non-Direct Integration: Where the Platform does not have direct integration with the delivery provider, you are solely responsible for entering accurate tracking details. In such cases, the Platform may engage with the delivery partner manually to verify tracking status if issues arise.

2.3. The tracking number must show final delivery status (e.g., ‘delivered’) to the buyer's provided address. In-person delivery must be supported by a signed delivery receipt or photographic evidence of handoff.

2.4. Failure to dispatch the item on time or to provide a valid and verifiable tracking number may result in cancellation of the transaction and a full refund to the Buyer. The Platform reserves the right, in its sole discretion, to determine whether delivery obligations have been met based on available tracking information and your cooperation.

3. Release of Funds

3.1. Payment for your item will be released from escrow to your nominated payout account when one of the following occurs:

1. The Buyer confirms receipt of the item through their account on the Platform; or
2. Three (3) business days have passed since the item is marked as delivered via the tracking system and no dispute has been raised by the Buyer.

3.2. Payouts will be made in accordance with the standard settlement schedule of the Escrow Agent (e.g. daily or weekly), and you will be notified once the release instruction has been processed.

4. Fees and Deductions

4.1. A service fee may apply for each transaction processed through escrow. This fee will be disclosed to you clearly before finalizing your listing or prior to completing a sale.

4.2. Unless otherwise stated, the escrow fee will be deducted directly from your payout amount. If the Platform determines that the Buyer will bear the fee, this will be reflected in the transaction summary and shall not reduce your payout.

4.3. Escrow fees are generally non-refundable once the item has been dispatched, unless the transaction is canceled before shipment.

5. Dispute Cooperation

5.1. If a Buyer raises a dispute, you are required to respond within two (2) business days from the date of notification by the Platform. You must provide all relevant supporting documentation, including but not limited to:

1. Proof of shipment (courier receipt, tracking slip);
2. Delivery confirmation;
3. Communication with the Buyer (if relevant).

5.2. Failure to respond or provide sufficient evidence may result in a resolution in favor of the Buyer, including a full refund from the escrowed amount. The Platform’s determination in dispute cases is final and binding, and the Escrow Agent will act in accordance with the Platform’s instruction.

5.3. In the event of partial fulfillment or agreed partial returns, the Platform may authorize a partial refund from escrow. Both parties must confirm the agreed amount in writing via the Platform.

5.4. All pre-sale, post-sale, and dispute-related communication must take place within the Platform’s messaging system. External communication may not be considered as valid evidence unless otherwise approved.

6. Compliance and Identification

6.1. You agree to comply with all applicable laws in Kenya, including identity verification requirements under the Proceeds of Crime and Anti-Money Laundering Act, 2009 (POCAMLA), and guidance issued by the Central Bank of Kenya.

6.2. This may include submitting personal or business identification documents (e.g., national ID, PIN certificate, business registration) to the Platform or the Escrow Agent, either during onboarding or before receiving funds.

6.3. In some cases, enhanced due diligence (EDD) may be required, especially for high-value transactions, repeated disputes, or flagged activity. This may involve additional verification steps including video identification or in-person verification. 

6.4. Non-compliance or refusal to provide requested information may result in delayed payouts, withholding of funds, or suspension of your Seller account.

7. Platform Role and Limitations

7.1. The Platform serves solely as a technology facilitator and user interface for the escrow arrangement. It does not act as the Escrow Agent and does not receive, control, or disburse funds between Buyers and Sellers.

7.2. While the Platform may assist with dispute resolution and transaction coordination, it is not liable for:

1. Delays in payouts caused by the Escrow Agent, banks, or delivery providers;
2. Losses resulting from user error or false declarations by either party; or
3. Technical failures beyond the Platform’s reasonable control.

7.3. Your use of the escrow service is at your own risk and subject to these limitations.

7.4. The Platform is not liable for delays, losses, or disputes arising from force majeure events, including but not limited to internet outages, strikes, civil unrest, or natural disasters that affect the delivery or confirmation process.

7.5. By using the escrow service, you understand and accept that: (i) The Platform does not verify the authenticity, legality, or quality of goods or services listed by users; (ii) Escrow only protects funds during the payment and delivery phase; (iii) You transact with third parties at your own risk; (iv) The Platform does not guarantee the performance, reliability, or identity of other users.

8. Seller Warranties and Responsibilities

8.1. By using the escrow service as a Seller, you represent and warrant that: (i) You have the legal right to sell the goods or services listed; (ii) Your listings are accurate, and you will deliver items as described and on time; (iii) The goods are genuine, legal, and not subject to any restrictions (e.g. counterfeit, stolen, or prohibited items); (iv) You will not misuse the escrow service or misrepresent delivery or shipment.

8.2. If you breach these responsibilities, the Platform reserves the right to: (i) Withhold or reverse escrow payouts; (ii) Suspend or terminate your seller account; (iii) Report your activity to regulators, law enforcement, or financial partners.

8.3. You agree to indemnify and hold harmless the Platform, its affiliates, officers, employees, and partners from any claims, losses, damages, liabilities, or costs arising from your use of the escrow service, your breach of these Escrow Terms, or any unlawful activity you engage in through the Platform.

9. Prohibited Activities

9.1. You agree not to use the escrow service for any unlawful or prohibited purposes, including but not limited to: (i) Engaging in fraudulent transactions or false listings; (ii) Attempting to circumvent payment or escrow mechanisms; (iii) Money laundering, terrorist financing, or any activity in violation of applicable law; (iv) Purchasing or selling illegal, restricted, or counterfeit items; (v) Coordinating off-platform payments to avoid escrow fees.

9.2. The Platform reserves the right to suspend or permanently ban any account involved in prohibited activity, report such activity to the relevant authorities, and withhold or reverse escrow funds where required by law.

Last updated:15 July 2025