Chama Constitution Template for Kenya (Free Sample, Section by Section)

A chama constitution is the founding agreement of your group: what it is for, who can join, who runs it, how money is handled and what happens if it closes. You need one to register as a self-help group, to open a group bank account, and, most of all, to settle the disagreements every group eventually has.

Below is a free chama constitution template for Kenyan groups, section by section, with sample wording. Copy it, replace the parts in [square brackets], and adopt it at a general meeting. The day-to-day amounts (contribution size, fines, loan limits) are best kept in separate by-laws so you can change them without rewriting the constitution; our chama rules and regulations guide has 28 sample by-laws.

What a chama constitution must cover

Section	What it answers
Name and address	What the group is legally called and where it is based
Objectives	Why the group exists (savings, loans, investment, welfare)
Membership	Who can join, how, and how membership ends
Officials	Who runs the group, how they are elected and for how long
Meetings	How often, quorum, and how decisions are made
Finances	Contributions, bank account, signatories, records, audit
Disputes and discipline	How conflicts are resolved and members disciplined
Amendments	How the constitution itself is changed
Dissolution	How assets are shared if the group closes

Chama constitution template

1. Name

The name of the group shall be [Group Name] Self-Help Group (hereinafter "the Group").

2. Address

The Group's postal address shall be [P.O. Box, Town] and its meeting place shall be [Location], or any other place agreed by members.

3. Objectives

The objectives of the Group are to:

1. Encourage members to save regularly.
2. Give members access to affordable loans from the Group's funds.
3. Invest the Group's funds in [land, shares, a business] for the benefit of members.
4. Support members in times of bereavement, sickness or other emergencies.

Keep only the objectives that apply. If your group is a merry-go-round, say so here.

4. Membership

1. Membership is open to any person aged 18 or above who accepts this constitution and is approved by a two-thirds majority of members.
2. Each new member pays a registration fee set in the by-laws.
3. Each member nominates a next of kin, recorded by the secretary.
4. Membership ends on written resignation, expulsion under Clause 10, or death.
5. A departing member is refunded their savings, less any loans, fines and guarantees outstanding, within [90] days.

5. Officials

1. The officials of the Group are the Chairperson, Vice-Chairperson, Secretary and Treasurer.
2. Officials are elected at the Annual General Meeting by secret ballot and serve a term of [two] years. An official may serve a maximum of [two] consecutive terms in the same office.
3. An official may be removed by a two-thirds vote at a general meeting.

6. Duties of officials

• Chairperson: chairs meetings, represents the Group, and ensures this constitution is followed.
• Secretary: keeps the member register, records and circulates minutes, and handles correspondence.
• Treasurer: receives and records all money, keeps the Group's financial records, banks money promptly, and presents a financial report at every meeting.

7. Meetings

1. Ordinary meetings are held [monthly] on [the first Saturday].
2. The Annual General Meeting is held in [January] to receive the annual financial report, elect officials and declare dividends.
3. A special meeting may be called by the Chairperson or by written request of one-third of members, with [seven] days' notice.
4. The quorum for any meeting is two-thirds of members.
5. Each member has one vote. Decisions are by simple majority unless this constitution says otherwise.

8. Finances

1. Members contribute the amounts set in the by-laws.
2. All money is paid into the Group's bank account or paybill [number]. No official shall receive Group money into a personal account.
3. The account signatories are the Chairperson, Secretary and Treasurer. Any two, one of whom must be the Treasurer, sign each withdrawal.
4. The Group keeps records of every member's contributions, shares, loans and fines, open to inspection by any member.
5. The accounts are reviewed every year by [an auditor / a committee of two members who are not officials] before the AGM.
6. Profits are shared among members in proportion to their savings, as declared at the AGM. See how to calculate chama dividends.

9. Loans

The Group may lend to members on terms set in the by-laws, including eligibility, limits, interest, guarantors and recovery of defaulted loans. Our chama loan rules guide has sample terms.

10. Discipline

1. A member who breaks this constitution or the by-laws may be fined as set out in the by-laws.
2. A member may be suspended or expelled by a two-thirds vote for fraud, persistent default or serious misconduct, after being given a fair hearing.
3. An expelled member's savings are refunded under Clause 4.5.

11. Disputes

Disputes are first discussed at a general meeting. If they cannot be resolved, they are referred to [the area Social Development Officer / an agreed mediator] before any other action is taken.

12. Amendments

This constitution may be amended by a two-thirds vote at a general meeting, with the proposed change circulated to members at least [14] days in advance.

13. Dissolution

The Group may be dissolved by a two-thirds vote of all members. Its assets shall be sold, its debts paid, and the balance shared among members in proportion to their savings.

14. Adoption

This constitution was adopted at a general meeting held on [date].

Signed: Chairperson ______ Secretary ______ Treasurer ______

Attach a list of all members with their ID numbers, phone numbers and signatures.

Mistakes to avoid

• Copying another group's constitution without reading it. If it mentions a land project you do not have, or a quorum you can never reach, it will cause trouble.
• Putting amounts in the constitution. "KES 2,000 a month" will be wrong in two years. Put amounts in by-laws.
• No exit rule. The most bitter chama disputes are about refunds to members who leave.
• No next of kin. Without one, a deceased member's savings can be stuck for months.
• Signing it, then filing it away. Members should be able to read it whenever they want.

Frequently asked questions

Do I need a constitution to register a chama in Kenya?

Yes. Self-help group registration with the Department of Social Development, and opening a group bank account, both require a constitution, minutes of the meeting that adopted it and a list of members. See our registration guide.

What is the difference between a constitution and by-laws?

The constitution sets out the group's structure and rarely changes. By-laws hold the operating details, such as contribution amounts, fines and loan terms, and are reviewed regularly.

Can a small chama of friends skip the constitution?

You can, but even a short, signed one-page agreement covering contributions, loans, exits and dissolution will save friendships later.

Keep your constitution where members can read it

In ChamaPoint, officials upload the signed constitution and meeting minutes to the group's documents, so every member can read them at any time, alongside their own contributions, loans and fines. Start a 7-day free trial. No card is required.