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Stokvel Constitution

(Platform-Based Stokvel Governance Framework)

Effective Date: 22 February 2025
Last Updated: 18 January 2026

1. PURPOSE OF THIS CONSTITUTION

 

This Constitution sets out the rules, governance principles, rights, and obligations applicable to all stokvels created and operated on the KasiConvocation platform.

Its purpose is to:

  • Provide clarity and transparency to members.
  • Ensure fair participation and accountability.
  • Regulate contributions, withdrawals, rewards, and dispute handling; and
  • Align stokvel operations with applicable South African laws and regulatory expectations.
2. DEFINITIONS

 

Unless the context indicates otherwise:

  • “Platform” means the KasiConvocation mobile application and website.
  • “KasiConvocation” means KasiConvocation (Pty) Ltd.
  • “Stokvel” means a savings, investment, rotating, or crowdfunding group created on the Platform.
  • “Member” means a registered user who has joined a Stokvel.
  • “Admin / Creator / Treasurer” means the Member authorised to manage a Stokvel.
  • “Wallet” means a user’s digital account on the Platform.
  • “Joining Fee” means a once-off fee charged by a Stokvel upon entry.
  • “Contribution” means recurring or once-off payments made by Members to a Stokvel.

“Points” means reward units earned through qualifying platform activity.

3. ADOPTION AND BINDING EFFECT

 

3.1 This Constitution applies to all stokvels created on the KasiConvocation Platform.

3.2 By creating, joining, or participating in a Stokvel, a member agrees to be bound by:

  • This Constitution.
  • KasiConvocation’s Terms and Conditions.
  • Any Stokvel-specific rules agreed to by Members.

3.3 No Member may participate in a Stokvel without accepting this Constitution.

4. MEMBERSHIP AND VERIFICATION

 

4.1 Any registered user may apply to join a Stokvel, subject to acceptance by the Stokvel Admin or Members.

4.2 Only verified users may create a Stokvel.

4.3 Verification requires:

  • A valid South African ID or passport; and
  • Proof of residential address.

4.4 Member Vouching

4.4.1 Where a user cannot complete standard verification, they may request to be vouched for by Members of a specific Stokvel.

4.4.2 Vouching requires unanimous approval of all existing Members.

4.4.3 Vouching applies only to that specific Stokvel.
A new Stokvel requires a new vouching process.

5. JOINING FEES

 

5.1 A Stokvel may charge a once-off joining fee, determined at the time of creation.

5.2 Joining fees are:

  • Non-refundable under all circumstances.
  • Payable upon joining; and
  • Paid to the Admin / Creator / Treasurer of the Stokvel.

5.3 KasiConvocation does not assume ownership of joining fees unless expressly stated.

6. CONTRIBUTIONS

 

6.1 Contribution amounts and frequency (weekly, fortnightly, or monthly) are set at Stokvel creation.

6.2 Members must contribute to accordance with the agreed rules.

6.3 Failure to contribute on time may result in:

  • Fines or penalties agreed upfront by Members.
  • Suspension or removal from the Stokvel, subject to Member approval.
7. STOKVEL TYPES, INTEREST AND WITHDRAWAL RULES

7.1 Fixed Investment Stokvel

7.1.1 Members contribute fixed amounts for a defined duration.

7.1.2 Funds accumulated in a Fixed Investment Stokvel may earn interest of up to 8% per annum, depending on:

  • The duration of the saving period; and
  • The applicable investment or yield arrangements supported by the Platform.

7.1.3 Only the Admin / Creator / Treasurer may initiate a payout.

7.1.4 Payout options:

  • Equal distribution of the lump sum (including interest, where applicable); or
  • Transfer of the full amount to one agreed Member.

7.1.5 Unanimous approval of all Members is required before funds are released.

 

7.2 Indishi Investment Stokvel

7.2.1 Members may contribute flexible amounts within limits set by the Admin / Creator / Treasurer (e.g. R50 – R3,000).

7.2.2 Contributions continue until the agreed end date.

7.2.3 Indishi Investment Stokvels may earn interest of up to 8% on the total accumulated funds, depending on the duration and structure of the Stokvel.

7.2.4 Upon payout initiation:

  • Each Member receives exactly the amount they contributed.
  • The Platform automatically calculates and distributes funds.

 

7.3 Rotating Stokvel

7.3.1 Members contribute fixed amounts at agreed intervals.

7.3.2 Members take turns receiving the lump sum.

7.3.3 Each payout requires:

  • Initiation by the Admin; and
  • Approval by all Members before disbursement.

7.3.4 Members are strongly advised and acknowledge that Rotating (Traditional) Stokvels should only be formed and participated in with individuals they personally know and trust.

7.3.5 KasiConvocation shall not be responsible for losses, defaults, or disputes arising from Members participating in Rotating Stokvels with unknown or unverified persons.

 

7.4 Crowdfunding Campaigns

7.4.1 Members may create crowdfunding campaigns on the Platform.

7.4.2 Upon withdrawal, a 5% platform service fee is deducted.

7.4.3 Campaign creators are responsible for lawful use of funds.

8. WALLETS, REWARDS, DEPOSITS & WITHDRAWALS

 

8.1 Wallet Functionality

Each user is issued with a personal Wallet on the Platform, which may be used to:

  • Deposit funds.
  • Send money to other users on the Platform.
  • Contribute to Stokvels.
  • Receive payouts from Stokvels; and
  • Withdraw funds using supported withdrawal methods.

8.2 Points and Rewards Programme

8.2.1 Users earn reward Points for qualifying deposits made into the Platform.

8.2.2 Points are allocated as follows:

  • 1 Point for every R100 deposited.
  • 10 Points for every R1,000 deposited.

8.2.3 Points may be accumulated and converted into cash, subject to conversion rates, minimum thresholds, and rules determined by KasiConvocation from time to time.

8.2.4 KasiConvocation reserves the right to amend, suspend, or terminate the Points programme with reasonable notice.

8.3 Wallet Top-Up Methods

Users may fund their Wallets using one or more of the following methods, as supported by the Platform:

  • Bank transfer / EFT.
  • Cash or bank deposits.
  • OTT vouchers.
  • Other approved payment channels made available from time to time.

8.4 Withdrawal Methods and Fees

Users may withdraw funds from their Wallets using the following methods, subject to applicable fees:

  • Bank transfer withdrawal:
    A service fee of 2% of the withdrawal amount.
  • EFT / Ozow / bank deposit withdrawal:
    A service fee of 3% of the withdrawal amount.
  • OTT voucher withdrawal:
    A service fee of 8% of the withdrawal amount.
  • e-Wallet withdrawal:
    A service fee of 8% of the withdrawal amount.

8.4.1 All withdrawal fees are deducted automatically at the time of withdrawal.

8.4.2 Withdrawal fees are non-refundable once a transaction has been processed.

8.4.3 KasiConvocation reserves the right to amend withdrawal methods and fees, subject to prior notice to users where required by law.

9. DISPUTES AND PLATFORM INTERVENTION

 

9.1 Members must first attempt to resolve disputes internally.

9.2 Where disputes remain unresolved, KasiConvocation may:

  • Review transaction records and logs.
  • Investigate alleged breaches; and
  • Facilitate resolution.

9.3 Where serious misconduct occurs, KasiConvocation may disclose a member’s:

  • Identity details; and
  • Proof of address to affected Members for lawful action, including police cases.
10. MEMBER OBLIGATIONS

 

Members shall:

  • Act honestly and in good faith.
  • Contribute on time.
  • Comply with agreed Stokvel rules.
  • Respect collective decisions.
11. ROLE AND LIMITATION OF KASICONVOCATION

 

11.1 KasiConvocation provides:

  • The digital platform.
  • Record-keeping.
  • Automated disbursement mechanisms.

11.2 KasiConvocation:

  • Does not provide financial advice.
  • Does not guarantee returns.
  • Is not responsible for Member decisions made in accordance with agreed rules.
12. REGULATORY, POPIA & RICA COMPLIANCE

 

12.1 KasiConvocation processes personal information in accordance with POPIA.

12.2 Identity verification is conducted in line with RICA requirements.

12.3 Members acknowledge that KasiConvocation operates as a platform and administrator of pooled savings, not an investment advisor.

13. AMENDMENTS

 

13.1 KasiConvocation may amend this Constitution where required for legal, operational, or regulatory reasons.

13.2 Stokvel-specific rules may only be amended with Member approval.

14. GOVERNING LAW

 

This Constitution is governed by the laws of the Republic of South Africa.

15. FINAL ACKNOWLEDGEMENT

 

By creating or joining a Stokvel on the KasiConvocation Platform, Members confirm that they have read, understood, and agreed to this Constitution and accept the risks and responsibilities associated with collective savings.