Chama rules and regulations
Rules only work if they are written down, fair, and applied to everyone the same way. Below is a set of sample chama rules you can adopt as-is or adapt. They belong inside your constitution — this page explains what good rules look like and why.
Contribution rules
- Every member contributes the same agreed amount by the same due date each month.
- A short grace period (say three days) applies; after that, a late fine kicks in automatically.
- Contributions go into the group account and are recorded openly — every member can see who has paid.
- A member who falls behind by more than [e.g. two] cycles is reviewed by the group.
Meeting rules
- The chama meets on a fixed schedule (e.g. the first Saturday of each month).
- A quorum — usually two-thirds of members — is required to make decisions.
- Each member has one vote; decisions pass by majority.
- Attendance is recorded; missing a meeting without notice attracts a small fine.
Loan rules
- A member qualifies to borrow after a minimum membership period and up to a multiple of their savings.
- Interest, guarantors and the repayment window are the same for everyone — no special deals.
- Guarantors are recorded for every loan and cover it if the borrower defaults.
- A member with an unpaid loan cannot take a new one.
Fine rules
Fines protect the group's discipline; they are not a way to raise money. Keep them small and predictable, and apply them consistently. A common structure:
| Offence | Fine |
|---|---|
| Late contribution | KES [amount], or [amount] per day |
| Missing a meeting without notice | KES [amount] |
| Lateness to a meeting | KES [amount] |
| Late loan repayment | [amount]% of the overdue instalment |
Only the chairperson may waive a fine, and the reason is minuted. A fine quietly forgiven for one person and enforced on another destroys trust faster than no fine at all.
Conduct and exit rules
- Members treat each other with respect; group money is never discussed carelessly outside the chama.
- A member may leave with notice; their savings are refunded after settling anything they owe.
- A member may be removed by a [e.g. two-thirds] vote for repeated breaches, after a written warning.
Why written rules matter
Almost every chama that breaks up does so over a disagreement that written rules would have settled in seconds. The rules do two jobs: they set expectations before anyone joins, and they give you a neutral thing to point to when emotions run high. Pair them with transparent records — when everyone sees the same numbers, most disputes never start. See how to run a chama for the full picture, or use chamalog to keep a shared, tamper-evident ledger.
Common questions
What are the basic rules of a chama?
Equal contributions on a fixed date, regular meetings with a quorum, consistent loan and fine rules, open records, and clear exit terms. Everything else builds on those.
Can a chama fine its members?
Yes, if the fines are in your agreed rules. Keep them small, apply them to everyone equally, and let only the chairperson waive one, on the record.
Where do the rules live?
Inside your constitution. Use our free chama constitution template and drop these rules into it.