REFUND AND RETURNS POLICY

Carata Limited (Kenya)

Effective Date: 12 August 2026

Last Updated: 7 August 2026

INTRODUCTION

This Refund and Returns Policy (“Policy”) sets out the rules and procedures governing refunds, returns, replacements, cancellations, and related remedies for orders placed through Carata Limited’s Platform. It is intended to operate alongside Carata’s Business Terms & Conditions and Customer Terms & Conditions, and to give practical effect to Section 11 (Refunds, Returns and Cancellations) of the Customer Terms & Conditions and Section 9 (Product Quality, Food Safety and Wrong Items) of the Business Terms & Conditions.

This Policy reflects Carata’s applicable commercial and operational refund rules and is intended to provide a clear and consistent framework for handling issues arising from orders, including incorrect, missing, damaged, defective, unsuitable, or otherwise non-conforming products and services.

Nothing in this Policy limits, excludes, or overrides any rights or remedies available to Customers under applicable Kenyan law. In particular, statutory consumer rights and protections under the Consumer Protection Act, 2012 are preserved and cannot be excluded or restricted by this Policy.

This Policy applies to Customers and Businesses participating on the Carata Platform, as applicable, and should be read together with Carata’s other applicable terms, policies, and rules. Carata may update this Policy from time to time to reflect changes in applicable law, its services, commercial arrangements, or operational processes.

1. PURPOSE AND SCOPE

This Refund and Returns Policy (“Policy”) explains when and how Carata processes refunds, price adjustments and returns in connection with Orders placed through the Carata Platform. It applies to Customers, and cross-refers to the corresponding obligations of Businesses and Delivery Partners under the Business Terms & Conditions.

This Policy should be read together with Carata’s Customer Terms & Conditions, Business Terms & Conditions, and Privacy Notice. Where this Policy conflicts with a mandatory right under the Consumer Protection Act, 2012 or other applicable Kenyan law, the mandatory right prevails.

2. DEFINITIONS

“Order”: a Customer request submitted through the Platform to purchase Products and/or request an Errand.
“Purchase Run”: an Order (typically a Shop, Grocery or Errand Order) where a Delivery Partner purchases Products on the Customer’s behalf from a Business or shop, rather than the Business dispatching a pre-priced, pre-packaged Order.
“Quoted Price”: the amount the Customer paid at checkout for the Products in a Purchase Run, being the Platform’s estimated base price for the Products with the applicable Customer Share of the Commission (as defined in the Business Terms & Conditions) already applied, at the time of ordering.
“Actual Purchase Cost”: the amount actually paid by the Delivery Partner (on Carata’s behalf) to purchase the Products comprising a Purchase Run, being the base price before any Commission is applied.
“Recalculated Price”: the price that would have been charged to the Customer had the Actual Purchase Cost been known at checkout, calculated by applying the same Commission and Customer Share methodology used to calculate the Quoted Price to the Actual Purchase Cost instead of the Platform’s original price estimate.
“Price Difference”: the positive or negative difference between the Quoted Price and the Recalculated Price for a Purchase Run.
“Business Fault Defect”: a defect, damage, contamination, spoilage, wrong item or missing item that existed in a Product at the time it was prepared, packaged or handed over by the Business, and that could not reasonably have been identified by a Delivery Partner through a visual, external check at the point of collection.
“Delivery Fault Damage”: damage, loss, spillage, contamination or spoilage caused to a Product after collection by a Delivery Partner, arising from the Delivery Partner’s negligence, mishandling or delay.
Other capitalised terms (“Platform”, “Business”, “Customer”, “Delivery Partner”, “Product”, “Errand”, “Customer Charge”) have the meanings given in the Customer Terms & Conditions and Business Terms & Conditions.

3. HOW WE DECIDE WHO PAYS — SUMMARY

The table below summarises Carata’s approach. Each row is explained in more detail in the sections that follow.

Scenario	Who bears the cost	See section
Customer cancels an Order before the Business has started preparing it or a Delivery Partner has been dispatched	Carata refunds the Customer in full	4
Customer cancels after preparation has started or a Delivery Partner has been dispatched	May be partially refundable, at Carata’s reasonable discretion, having regard to costs already incurred	4
Purchase Run: Customer paid more than the Recalculated Price for what the Delivery Partner actually spent buying the items (Quoted Price > Recalculated Price)	Carata refunds the Customer the Price Difference	5
Purchase Run: Recalculated Price for what the Delivery Partner actually spent is more than the Customer paid (Recalculated Price > Quoted Price)	Customer pays the Price Difference to Carata through an authorised payment channel	5
Product damaged, spoiled or lost after collection due to Delivery Partner negligence, mishandling or delay (Delivery Fault Damage)	Carata refunds or compensates the Customer	6.1
Product wrong, missing, defective, contaminated or unsafe due to a Business Fault Defect (not reasonably detectable by the Delivery Partner at collection — e.g. sealed food, quality/taste, internal preparation)	The Business bears the cost; Carata facilitates the Customer refund and recovers the amount from the Business	6.2
Product visibly damaged, leaking, incorrect or incomplete in a way the Delivery Partner should reasonably have identified at collection, but which was collected anyway	Treated as Delivery Fault Damage — Carata refunds or compensates the Customer	6.3

4. ORDER CANCELLATIONS

If you cancel an Order before the Business has started preparing or picking it, and before a Delivery Partner has been dispatched, Carata will refund the full amount you paid, including any Customer Charge and Tax, to your original payment method.
If you cancel after the Business has started preparing or picking the Order, or after a Delivery Partner has been dispatched, a full refund may not be possible, because the Business and/or Delivery Partner may already have incurred cost or effort. In that case, Carata may deduct a reasonable amount reflecting costs already incurred (for example, the cost of Products already purchased or prepared, and any dispatched-delivery fee) before refunding the balance.
If Carata cancels an Order (for example, because the Business cannot fulfil it, a Product is unavailable, or for a reason described in the Customer Terms & Conditions), Carata will refund the full amount paid for the cancelled portion, including any Customer Charge and Tax.
Refunds under this section are processed by Carata; the underlying cost, where attributable to the Business or Delivery Partner’s fault, may be recovered from the responsible party in accordance with the Business Terms & Conditions.

5. PRICE RECONCILIATION FOR PURCHASE RUNS (SHOPS, GROCERIES AND ERRANDS)

For Shop, Grocery and Errand Orders where a Delivery Partner purchases Products on your behalf, the Quoted Price shown at checkout is an estimate of the base price for the Products, with the applicable Customer Share of the Commission already applied — it is not simply the raw price of the Products at the shop. The Actual Purchase Cost — what the Delivery Partner actually pays at the shop — may differ from that estimated base price because of price changes, substitutions, weight-based pricing, or limited stock at the time of purchase.

Once the Purchase Run is reconciled, Carata does not compare the Quoted Price directly to the Actual Purchase Cost. Instead, Carata reapplies the same Commission and Customer Share methodology used to calculate the Quoted Price to the Actual Purchase Cost, to work out the Recalculated Price — the price you would have been charged had the Actual Purchase Cost been known at checkout. It is the Recalculated Price, not the raw Actual Purchase Cost, that is compared against the Quoted Price you paid to determine whether a refund or additional payment is due.

Illustrative example (for clarity only; actual figures depend on the Commission and Customer Share agreed with the Business): the Platform estimates the base price of the Products at KES 1,000 and applies a 7% Customer Share, so the Quoted Price charged to you at checkout is KES 1,070. If the Delivery Partner is able to buy the same Products for an Actual Purchase Cost of KES 900, Carata reapplies the 7% Customer Share to that KES 900 to get a Recalculated Price of KES 963. Because the Recalculated Price (KES 963) is less than the Quoted Price you paid (KES 1,070), Carata refunds you the Price Difference of KES 107. If instead the Delivery Partner had to pay KES 1,100, the Recalculated Price would be KES 1,177, and you would owe Carata the Price Difference of KES 107 under Section 5.2.

5.1 Where you paid more than was spent (overpayment)

If the Recalculated Price is less than the Quoted Price you paid, Carata will refund the Price Difference to you. Where practicable, this refund will be processed automatically to your original payment method once the Purchase Run is reconciled; otherwise, contact Carata Support with your Order number.

5.2 Where more was spent than you paid (shortfall)

If the Recalculated Price is more than the Quoted Price you paid, you are required to pay Carata the Price Difference before the Order is completed, or, where the Order has already been delivered, promptly on request.

Any request for the Price Difference must be made through an authorised Carata payment flow (for example, an in-app payment request); it must never be paid in cash or to a Delivery Partner’s personal account.
If the Price Difference cannot be agreed or is not paid through an authorised Carata channel, Carata may, at its discretion, cancel the affected Product(s) and adjust the Order and refund accordingly, or pursue the shortfall as an amount owing on your account, subject to applicable law.
Carata may set a reasonable tolerance threshold below which a shortfall is absorbed by Carata rather than charged to the Customer, to avoid disproportionate collection efforts for small amounts.

5.3 Evidence and reconciliation

Carata may rely on the Delivery Partner’s purchase receipt, in-app purchase record, or other reasonable evidence to determine the Actual Purchase Cost, and then applies the Commission and Customer Share configured for the Business/Order (see Section 5 of the Business Terms & Conditions) to calculate the Recalculated Price. Where you dispute the Actual Purchase Cost or the resulting Recalculated Price recorded for your Order, contact Carata Support with your Order number; Carata may request the underlying receipt or evidence from the Delivery Partner or Business.

6. DAMAGED, WRONG, MISSING OR UNSAFE PRODUCTS

Where you report a Product as damaged, wrong, missing, spoiled, contaminated, unsafe or otherwise materially defective, Carata will investigate and determine, based on the available evidence, whether the issue is a Delivery Fault Damage or a Business Fault Defect, and process the refund accordingly.

6.1 Damage caused by Delivery Partner negligence

Where a Product is damaged, spilled, spoiled or lost after a Delivery Partner has collected it, and this is caused by the Delivery Partner’s negligence, mishandling, unreasonable delay or misconduct, Carata will refund or otherwise compensate you directly. Carata may separately address the matter with the Delivery Partner in accordance with its own arrangements with Delivery Partners.

6.2 Defects that could not be verified by the Delivery Partner

Some defects cannot reasonably be identified by a Delivery Partner through an external, visual check at the point of collection — for example, the taste, temperature, internal preparation, freshness or ingredient accuracy of a sealed or prepared food item, or a defect hidden inside packaging. Where a Product supplied by a Business has such a defect (a Business Fault Defect), responsibility for the refund rests with the Business, consistent with Section 9 of the Business Terms & Conditions.

Carata will facilitate the refund to you as part of its Customer support process, so that you are not left to pursue the Business directly.
Carata will then recover the corresponding amount from the Business, whether by deduction from the Business’s future settlement or another mechanism permitted under the Business Terms & Conditions.
The Business remains responsible for the safety, quality and legal compliance of its Products, including compliance with the Public Health Act (Cap. 242) and the Food, Drugs and Chemical Substances Act (Cap. 254), regardless of the Delivery Partner’s inability to detect the defect at collection.

6.3 Defects the Delivery Partner should have caught

Where a defect was reasonably visible or detectable from the outside at the point of collection — for example, a torn or leaking package, an obviously incorrect item, or visible spoilage — and the Delivery Partner collected and delivered the Product regardless, this is treated as Delivery Fault Damage under Section 6.1, and Carata will refund or compensate you directly. A Delivery Partner’s refusal to collect a visibly defective Product does not, by itself, establish Business liability; see Section 10 of the Business Terms & Conditions.

6.4 Evidence

To process a claim under this Section 6, Carata may ask you to provide reasonable evidence, such as photographs of the Product and packaging, your Order number, and a description of the issue, submitted promptly (ideally at the time of delivery or as soon as reasonably possible afterwards).

7. REFUND METHOD AND TIMING

Approved refunds are generally returned to the original payment method used for the Order (for example, M-Pesa or the card used at checkout), unless Carata and the Customer agree on an alternative method such as platform credit.
The time it takes for a refund to reflect in your account depends on your payment provider, bank or mobile-money network, and is outside Carata’s direct control once the refund has been initiated.
Where a refund includes an amount of Tax originally charged on the refunded portion, that Tax amount will also be refunded, consistent with Section 5.4 of the Customer Terms & Conditions.

8. SITUATIONS WHERE A REFUND MAY NOT APPLY

Except where a mandatory right under the Consumer Protection Act, 2012 or other applicable Kenyan law requires otherwise, a refund will generally not be available where:

the Order was correctly and safely supplied as described, and the Customer simply changed their mind, particularly for perishable, prepared or customised Products;
the claim is fraudulent, abusive, unsupported by evidence, or part of a pattern of repeated unsupported claims;
the Customer provided incorrect delivery information, was not reasonably available to receive the Order, or otherwise caused the fulfilment issue; or
the Customer intentionally exploited a pricing, promotional or payment error.

9. ROLE OF CUSTOMER SUPPORT

Carata Customer Support is the primary channel for raising and resolving refund requests. Customer Support will:

receive your refund request and any supporting evidence;
investigate the circumstances, including by reviewing Order records, Delivery Partner reports, and, where relevant, contacting the Business;
determine whether the matter falls under Sections 4 to 6 of this Policy, and process the applicable refund, adjustment or compensation;
keep you informed of the outcome and expected timing; and
where a claim is rejected, explain the reason and, where applicable, your right to escalate the matter under Section 28 (Dispute Resolution and Governing Law) of the Customer Terms & Conditions.

10. RELATIONSHIP WITH THE BUSINESS TERMS & CONDITIONS

Where this Policy places responsibility for a refund on a Business, that amount is recovered from the Business under Sections 9, 16 and 17 of the Business Terms & Conditions (Product Quality, Food Safety and Wrong Items; Payments and Settlement; and Refunds, Cancellations and Adjustments). A Business that disputes a refund charged to it may raise the matter with Carata in accordance with those provisions and Section 21 (Records, Audit and Evidence) of the Business Terms & Conditions.

11. GOVERNING LAW AND YOUR STATUTORY RIGHTS

This Policy is governed by the laws of Kenya. Nothing in this Policy limits or excludes any right or remedy you have under the Consumer Protection Act, 2012 or other applicable Kenyan law that cannot lawfully be limited or excluded, including in respect of Products that are not of the quality, fitness or description represented to you.

12. CHANGES TO THIS POLICY

Carata may update this Policy from time to time, consistent with Section 27 of the Customer Terms & Conditions. Material changes will be notified through reasonable means before they take effect. The version in effect at the time of your Order will generally govern that Order, subject to mandatory law.