Chama Constitution Template (Kenya)

1.1 Name. The name of the group is [Full name] (hereafter "the Group").

1.2 Objects. The Group is formed to:

• Pool members' savings for collective investment and mutual financial assistance
• Provide loans to members at agreed rates of interest
• Promote financial literacy and disciplined saving among members

1.3 Registered office. The registered address of the Group is [Physical address, Nairobi / county].

2.1 Eligibility. Membership is open to any adult Kenyan citizen or resident who is introduced by a current member, approved by a two-thirds majority at a general meeting, and pays the joining fee.

2.2 Joining fee. A new member shall pay a joining fee of KES [amount] before their first contribution is due. This fee is non-refundable.

2.3 Maximum membership. The Group shall not exceed [number] members at any time, unless altered by a special resolution.

2.4 Voluntary resignation. A member may resign by giving [30 / 60] days' written notice. They shall receive their savings balance less any outstanding loan balance. They shall not receive a share of the Group's fixed assets or reserves.

2.5 Expulsion. A member may be expelled by a two-thirds majority at a general meeting for: persistent non-payment of contributions, fraudulent conduct, or conduct that brings the Group into disrepute. An expelled member shall receive their savings less any outstanding obligations.

3.1 Monthly contribution. Each member shall contribute KES [amount] per [month / fortnight / week], payable on or before the [date, e.g. 5th] of each period.

3.2 Late payment penalty. Contributions received after the due date attract a penalty of KES [amount] per [week / month] late. The penalty is credited to the Group's welfare fund.

3.3 Arrears limit. A member more than [3] months in arrears is not eligible to receive a loan until arrears are cleared. A member more than [6] months in arrears may be expelled under Clause 2.5.

3.4 Method of payment. All contributions shall be made by M-Pesa to the Group's official number or by bank transfer to the Group's account. Cash payments are accepted only in a meeting and must be recorded in the minutes.

4.1 Eligibility. A member is eligible for a loan if they have been a member for at least [3] months and are not in arrears on contributions.

4.2 Loan limit. The maximum loan to any one member shall not exceed [3×] their accumulated savings at the time of application, or KES [maximum amount], whichever is lower. Total loans outstanding shall not exceed 80% of the Group's total savings.

4.3 Interest rate. Loans attract interest at [5%] per month on the [reducing balance / original principal]. All interest earned is credited to the Group's income account and distributed to members at the end of the financial year.

4.4 Loan term. The maximum repayment term is [6] months. The Treasurer shall issue a repayment schedule at disbursement.

4.5 Guarantors. Each loan shall require [2] guarantors who are members in good standing. Guarantors are jointly liable if the borrower defaults.

4.6 Approval. Loans above KES [amount] require approval at a general meeting. Loans below this threshold may be approved by the Chairperson and Treasurer jointly.

4.7 Default. A loan is in default after [2] consecutive missed repayments. The Group may recover the outstanding amount from the guarantors' savings or pursue recovery through legal channels.

5.1 Regular meetings. The Group shall meet [monthly], on the [last Saturday] of each [month].

5.2 Annual General Meeting. An AGM shall be held in [January] of each year to review the financial year, elect office bearers and approve plans for the year ahead.

5.3 Quorum. A quorum for any meeting is [two-thirds] of the membership. No binding financial decision may be made without a quorum.

5.4 Voting. Each member has one vote. Ordinary resolutions pass by a simple majority. Special resolutions (amending this constitution, winding up) require a two-thirds majority. The Chairperson has a casting vote in a tie.

5.5 Minutes. The Secretary shall circulate draft minutes within [7] days of each meeting. Minutes are confirmed at the next meeting and signed by the Chairperson.

6.1 Offices. The Group shall have a Chairperson, Vice-Chairperson, Secretary and Treasurer. All offices are elected at the AGM by secret ballot.

6.2 Term. Each term is [one year]. No person may hold the same office for more than [two] consecutive terms.

6.3 Treasurer duties. The Treasurer shall: receive and record all contributions, disburse approved loans, maintain the cashbook, and present a financial report at every meeting.

6.4 Dual authorisation. No single office bearer may authorise a payment. All payments require the signature (or M-Pesa approval) of both the Treasurer and at least one of the Chairperson or Vice-Chairperson.

6.5 Removal. An office bearer may be removed by a two-thirds majority at a special meeting called for that purpose, with [14] days' written notice to all members.

7.1 Bank account. The Group shall maintain a bank account in the Group's name at [name of bank]. The account requires two signatories.

7.2 Financial year. The financial year runs from 1 January to 31 December.

7.3 Annual accounts. The Treasurer shall prepare income and expenditure accounts and a balance of savings by [31 January] each year. These shall be presented at the AGM.

7.4 Petty cash limit. The Treasurer may hold up to KES [amount] in petty cash. All expenditure above KES [amount] requires a meeting resolution.

7.5 Dividends. At the end of each financial year, the Group shall distribute income (interest earned, penalties collected) to members in proportion to their average savings balance during the year.

8.1 Winding up. The Group may be dissolved by a special resolution (two-thirds majority) at a general meeting convened specifically for that purpose, with [21] days' written notice.

8.2 Distribution of assets. On dissolution, all outstanding loans become immediately due. After settling all liabilities, remaining assets shall be distributed to members in proportion to their savings balance at the date of dissolution.