Chama constitution template (free)

Copy the template below, fill in the parts in [brackets] with your group's own numbers, read it aloud at a meeting, and have every member sign. That's a working constitution. Keep it short enough that people actually read it — this whole thing fits on two pages.

This is a general template, not legal advice. For a large fund or a registered group, have an advocate review it. For the reasoning behind each clause, see how to run a chama.

The template

1. Name and purpose

This is the constitution of [Chama Name], formed on [date]. The purpose of the chama is [e.g. to pool monthly savings, lend to members, and invest for the benefit of all members].

2. Membership

• Membership is open to [who — e.g. invited persons over 18 approved by a majority vote].
• The maximum number of members is [number].
• A new member joins by [e.g. paying a one-time joining fee of KES [amount] and signing this constitution].
• A member may exit by giving [e.g. one month's] written notice; their savings are refunded after deducting any money they owe.

3. Officials

The chama is led by a Chairperson, a Treasurer and a Secretary, elected every [e.g. one year]. No official controls both the money and the records. All withdrawals from the group account require [e.g. two] signatories.

4. Contributions

• Each member contributes KES [amount] every [week / month].
• Contributions are due by the [e.g. 5th] of each month, with a grace period of [e.g. 3 days].
• All contributions are paid into the group account and recorded, named and dated, where every member can see them.

5. Fines

• Late contribution: KES [amount] (or [amount] per day late).
• Missing a meeting without notice: KES [amount].
• Only the Chairperson may waive a fine, and the reason is recorded in the minutes.

6. Loans

• A member may borrow up to [e.g. three times their savings] once they have been a member for [e.g. three months].
• Interest is [e.g. 5%] per month on the reducing balance.
• Each loan needs [e.g. two] guarantors from within the chama, who repay the loan if the borrower defaults.
• The repayment period is [e.g. up to 6 months].

7. Meetings

The chama meets [e.g. once a month]. A quorum is [e.g. two-thirds] of members. Decisions are made by a majority vote of members present; each member has one vote.

8. Share-out

At the end of each cycle ([e.g. every December]), after settling all loans and fines, each member receives their savings plus their share of the chama's profits, calculated in proportion to [e.g. their total contributions].

9. Amendments and dissolution

This constitution may be changed by a [e.g. two-thirds] vote at a meeting where the change was announced in advance. If the chama is dissolved, all debts are settled and the remaining funds shared among members in proportion to their contributions.

10. Adoption

We, the members of [Chama Name], adopt this constitution on [date]. (Signatures of all members.)