Chama Bank Account Requirements in Kenya: Documents and Signatories
What Kenyan banks usually ask for to open a chama account, how to choose signatories, what to compare, and how to set up M-Pesa collections.
A chama's money should never sit on a treasurer's M-Pesa line or in an official's personal account. The first big step most groups take after registering is opening a group bank account with more than one signatory. Here is what Kenyan banks usually ask for, how to choose an account, and how to set it up so the group's money stays safe.
Please note: each bank sets its own requirements and charges, and they change. Use this as a preparation checklist and confirm with your chosen bank before you visit.
Documents banks usually ask for
- Certificate of registration for the group, usually as a self-help group. See how to register a chama in Kenya.
- The group's constitution, often certified. Our constitution template covers the clauses banks look for, such as signatories and dissolution.
- Minutes of a meeting resolving to open the account, naming the bank and the signatories, and stating how many must sign each withdrawal. See our minutes template for sample wording.
- A list of members, sometimes with their ID numbers.
- Copies of the signatories' national IDs and KRA PINs, plus passport photos.
- The group's KRA PIN, which many banks require. Apply for it on iTax using the registration certificate.
- The bank's account opening form and mandate form, completed and signed by the signatories.
- An initial deposit, if the account has one.
Choosing signatories
The mandate (the rule for who must sign) is the most important decision you will make about the account.
- Appoint at least three signatories, usually the chairperson, secretary and treasurer.
- Require any two to sign, one of whom must be the treasurer. No one person should be able to withdraw alone.
- Avoid signatories who are related to each other.
- When officials change, update the mandate immediately with minutes of the election. Outgoing officials should not stay as signatories.
Our guide to the duties of chama officials explains how these roles fit together.
What to compare between banks
- Opening balance and minimum balance. Some chama accounts have none.
- Monthly fees and withdrawal charges. Small charges add up over years.
- Interest on savings. Many group accounts pay little or none; you may want a separate home for idle savings. See chama investment ideas.
- Paybill or collection options, so members can pay by M-Pesa straight into the account with their member number.
- How withdrawals are approved: in the branch, or digitally with each signatory approving on their phone.
- Statements: how easily you can download them for reconciliation.
- Branch access for your signatories.
- Group loans, if your chama may borrow as a group later.
Set up M-Pesa collections properly
The safest setup is a paybill linked to the group's bank account, with each member paying using their member number as the account reference. Every payment is then traceable to a member, and no money passes through an official's phone. Ask your bank how to set this up, or whether it offers a collection account with its own paybill.
After the account is open
- Read the bank statement at every meeting, or at least monthly.
- Reconcile it against your member records: every deposit should match a member's contribution, repayment or fine.
- Keep the account documents and the signed mandate with the secretary.
- Record every withdrawal's purpose and approval in the minutes.
Frequently asked questions
Can an unregistered chama open a bank account?
Most banks require a registration certificate. A few offer products for informal groups, but registering is usually simpler and gives the group legal standing.
How many signatories should a chama account have?
Three is common, with any two required to sign each withdrawal, one of whom is the treasurer.
Can members see the chama bank account?
The bank deals with signatories, so members rely on the officials to share statements. That is why many groups also use chama software that lets each member see their own contributions and loans.
Keep the records that match the bank
A bank account shows one balance. ChamaPoint, our chama management system, shows who owns what inside it: each member's contributions, shares, loans, fines and welfare, with M-Pesa paybill payments posted to the right member automatically. Members see their own records on the Android app, on the web or by USSD. Start a 7-day free trial. No card is required.