Forming a chama—whether for investment, savings, or social welfare—requires more than enthusiasm and trust. A chama (also known as a self-help group) must have a clear constitution that governs how members operate, make decisions, handle money, and resolve disputes.
A well-written constitution protects members, ensures transparency, and builds credibility when registering your group with authorities such as the Ministry of Gender, Social Services and Affirmative Action.
In this comprehensive guide, you’ll learn how to write a chama constitution from scratch, with a detailed structure. You can use it to create a customized document for your own group—whether it’s for savings, investment, or community empowerment.
Why Your Chama Needs a Constitution
Before diving into the writing process, let’s understand why a chama constitution matters:
- Legal Recognition:
To register your chama officially, a written constitution is mandatory. It shows the government that your group has a defined purpose and governance structure. - Financial Accountability:
The constitution defines how contributions, loans, and profits are managed. This ensures transparency and prevents misuse of funds. - Conflict Resolution:
With clear rules for discipline, resignation, or expulsion, you avoid unnecessary disputes that can cripple your chama. - Sustainability:
A structured constitution outlines leadership terms, elections, and succession plans—ensuring continuity even if founding members leave. - Member Confidence:
Members trust a chama that operates under clear, written rules. It encourages participation and long-term commitment.
Key Sections of a Chama Constitution
Every chama’s constitution can be customized to reflect its purpose and values. However, there are universal sections that every group should include. Below is a breakdown of the essential components, with examples based on a standard template.
1. Article 1: Name of the Group
This section defines the official name of your chama.
It’s crucial that the name is unique and not already registered by another organization.
Example:
The name of the group shall be Bright Future Self-Help Group.
Your group name should appear consistently on all documents, receipts, and registration forms.
2. Article 2: Aim of the Group
Here, outline the main purpose of forming the chama.
Keep it short and focused—usually one or two sentences that capture your long-term goal.
Example:
The aim of the group shall be to promote social and financial growth among members through savings, investment, and mutual support.
This statement serves as your group’s mission—why you exist and what binds members together.
3. Article 3: Objectives of the Group
List your chama’s specific objectives, i.e., the actions you’ll take to achieve your aim.
Be practical and relevant to your activities.
Examples:
- To promote a culture of savings and investments among members.
- To offer short-term loans and financial support to members.
- To engage in group investments that generate income.
- To encourage personal and professional development.
- To foster social unity and welfare among members.
These objectives will guide your decisions and determine whether new projects align with your mission.
4. Article 4: Membership
This is one of the most important sections of your constitution. It defines who can join, how they are admitted, and what is expected of them.
Eligibility Criteria
You can include requirements such as:
- Must be Kenyan and above 18 years old.
- Must be nominated by at least two existing members.
- Must be approved by a two-thirds (⅔) majority vote.
- Must pay a registration fee and monthly contribution.
- Must sign and abide by the group’s constitution.
These rules ensure only committed members join your chama.
Membership Size
Specify the minimum and maximum number of members your group can have.
Example: The group shall have a minimum of 10 and a maximum of 20 members.
5. Article 5: Member Contributions
Define how much each member contributes and how often.
Consistency in contributions is what sustains your chama financially.
Example:
Each member shall contribute KSh 1,000 per month, payable by the 15th day of every month.
Late payments shall attract a penalty of KSh 100.
You may also include rules on special contributions, such as fundraising or investment capital injections.
6. Article 6: Resignation and Withdrawal
Sometimes members leave due to personal or financial reasons. Your constitution should outline the correct procedure for resignation.
Example:
- A member who wishes to resign must submit a written letter to the Secretary.
- The resignation takes effect once the letter is acknowledged by the group.
- The resigning member will receive 90% of their contributions after six months, to allow for financial reconciliation.
This promotes fairness and protects the group’s liquidity.
7. Article 7: Expulsion of Members
To maintain discipline, include a section on when and how a member can be expelled.
Grounds for Expulsion:
- Non-payment of contributions for six consecutive months.
- Gross misconduct or unethical behavior.
- Conflict of interest or breach of confidentiality.
Decision Process:
A member may be expelled through a two-thirds majority vote of the full membership.
You may also state that expelled members cannot be readmitted if the offense was severe (e.g., theft or fraud).
8. Article 8: Meetings
Define how often members meet, where, and how attendance is managed.
Example:
- Regular meetings shall be held once per month.
- The Annual General Meeting (AGM) shall be held at the end of each financial year.
- A quorum shall consist of two-thirds of the members.
- Meetings can be held physically or virtually.
- Penalties: lateness (KSh 100) and absenteeism (KSh 150).
Having fixed meetings keeps members accountable and informed.
9. Article 9: Roles and Duties of Officials
Clearly state the key positions in your chama and their duties.
Most groups elect a Chairperson, Secretary, and Treasurer.
Chairperson
- Chairs all meetings.
- Confirms minutes of previous meetings.
- Calls for elections and AGMs.
- Serves as a signatory to the group’s bank account.
Secretary
- Records and reads meeting minutes.
- Keeps all group records and correspondence.
- Prepares meeting agendas.
- Acts as a bank signatory.
Treasurer
- Manages all financial records.
- Prepares monthly financial statements.
- Keeps track of income, expenses, and member balances.
- Serves as a bank signatory.
Disciplinary Committee
- Consists of selected members including the Secretary.
- Handles internal disputes and disciplinary matters fairly.
Signatories
- Typically three officials (Chairperson, Secretary, Treasurer).
- Any two signatories must authorize withdrawals.
This clarity prevents confusion and ensures smooth operations.
10. Article 10: Elections
Define how and when elections are conducted.
Example:
- Elections shall be held once every year, one month before the AGM.
- Voting shall be by secret ballot to ensure fairness.
- Winners shall be declared by a simple majority vote.
- The newly elected officials shall assume office within one month.
- Outgoing officials shall hand over responsibilities during the AGM.
Including this process ensures leadership renewal and accountability.
11. Article 11: Office Vacancies
Sometimes positions become vacant before an election period—due to resignation, illness, or misconduct.
Example:
When a vacancy arises, members shall hold a by-election within two weeks to fill the position.
This ensures leadership continuity.
12. Article 12: Financial Management
Though not in all templates, this is an essential addition. It sets out how the chama’s money will be handled.
Key guidelines:
- Open a group bank account under the chama’s registered name.
- Keep accurate records of all transactions.
- Require at least two signatories to approve any withdrawal.
- Conduct an annual financial audit before the AGM.
- Maintain a petty cash limit and require receipts for all expenditures.
Proper financial management safeguards your group’s reputation and sustainability.
13. Article 13: Disciplinary Procedures
Outline the steps to handle misconduct or disputes fairly and transparently.
Example Process:
- A complaint is reported in writing to the Secretary.
- The Disciplinary Committee investigates and recommends action.
- The accused member is given a fair hearing.
- Disciplinary actions may include warnings, fines, suspension, or expulsion.
- Final decisions require a two-thirds vote.
This structure upholds justice and unity in your chama.
14. Article 14: Dissolution of the Group
Explain how the chama can be dissolved and how assets will be distributed.
Example:
The group may be dissolved by a two-thirds majority vote of registered members.
Upon dissolution, all assets shall be sold, and members shall share proceeds according to their contributions.
This ensures fairness in case the chama ends.
15. Article 15: Amendments to the Constitution
No constitution is perfect. Your group should have a mechanism to update it when necessary.
Example:
Amendments to this constitution, whether partial or complete, shall require the approval of at least two-thirds of registered members during an official meeting.
This keeps your constitution flexible and relevant to changing circumstances.
How to Draft Your Chama Constitution: Step-by-Step Process
Now that you know what to include, here’s how to actually write it:
- Hold a Founding Meeting:
Gather all founding members to discuss your group’s purpose, goals, and rules. - Appoint a Drafting Committee:
Choose 3–5 members to prepare the first draft of the constitution. - Use a Template:
Start with a model like the one above. Replace names, figures, and terms to fit your group. - Review and Edit Collectively:
Present the draft to all members for feedback and corrections. - Adopt the Constitution:
Approve it formally through a majority or two-thirds vote. - Sign and Date:
All founding members should sign the final document, indicating agreement. - Register the Group:
Submit the signed constitution and member list to your local Social Services office for registration. - Keep Copies:
Each member should get a copy, and the Secretary should store the official version safely.
Tips for Writing a Strong Chama Constitution
- Be Clear and Simple:
Avoid complicated legal jargon. Use plain language everyone understands. - Be Specific:
Mention amounts, dates, and voting thresholds clearly. - Ensure Fairness:
Protect all members equally—no favoritism or vague powers. - Plan for the Future:
Include provisions for growth, digital meetings, or investment diversification. - Seek Guidance:
If possible, consult a legal or financial advisor before final approval.
Sample Chama Constitution Template (Summary Format)
Below is a condensed outline you can copy and customize:
- Name of the Group
- Aim of the Group
- Objectives
- Membership
- Eligibility
- Registration Fee
- Contributions
- Resignation and Expulsion
- Meetings
- Frequency, quorum, penalties
- Officials and Duties
- Chairperson, Secretary, Treasurer
- Elections
- Procedures, terms, by-elections
- Financial Management
- Disciplinary Committee
- Dissolution
- Amendments
- Signatures and Adoption
Once completed, your chama will have a legally recognized document to guide its operations.
Conclusion
Writing a chama constitution in Kenya is not just a formality—it’s a foundation for trust, transparency, and success. A well-structured constitution ensures your self-help group remains organized, compliant, and sustainable.
Whether your chama focuses on savings, investment, or welfare, adapt the sections above to fit your needs. Keep it simple, fair, and clear, and always involve all members in the drafting and approval process.
FAQs
1. What is a chama constitution?
A chama constitution is a written document that outlines the rules, objectives, leadership structure, and operating procedures of a self-help group. It acts as a legal and organizational guide.
2. Is a constitution required to register a chama in Kenya?
Yes. The Ministry of Gender, Social Services and Affirmative Action requires every self-help group to submit a constitution during registration.
3. How many members are needed to start a chama?
The minimum number is usually 10 members, and the maximum ranges from 15 to 30, depending on the group’s structure and by-laws.
4. How much should members contribute?
There is no fixed amount. Each chama decides its monthly contribution based on goals and affordability. Common contributions range between KSh 500–2,000 per month.
5. Can a member leave a chama?
Yes. Members can resign by submitting a written letter to the Secretary. The constitution should specify the refund policy and waiting period.
6. What happens if a member fails to pay contributions?
Most constitutions impose a penalty or suspension for consistent non-payment. Persistent defaulters may face expulsion after due process.
7. How are chama officials chosen?
Officials are elected democratically—usually by secret ballot—during the group’s annual elections or AGM.
8. Can the chama constitution be changed?
Yes. Any part of the constitution can be amended with approval from at least two-thirds of the members during a properly convened meeting.
9. How do you dissolve a chama?
Dissolution occurs through a two-thirds majority vote or if all members withdraw. Remaining assets are shared proportionally among members.
10. Where can I get a chama constitution template?
You can use the general format provided in this article, adapted from a real-world sample. Customize it with your group’s name, contribution rates, and goals.
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