Writing a Chama Constitution That Actually Works
A chama constitution prevents disputes before they start. Here's a practical template covering the clauses every Kenyan chama needs.
Every chama argument you've ever heard could have been prevented by a single document: a clear, specific, agreed-upon constitution. Not a 50-page legal document — a straightforward set of rules that everyone signs and follows.
Why You Need One
Without a constitution:
- "I thought we agreed on KES 2,000" vs "No, it was KES 1,000"
- "I want to leave and take my money" vs "You can't withdraw for 12 months"
- "The chairperson decided without us" vs "They have the authority to do that"
With a constitution, you point to clause 7.2 and move on.
Essential Clauses
1. Name and Purpose
State the chama's official name and its purpose — savings, investment, welfare, or all three. This matters if you ever register formally.
2. Membership
- How to join (application, vote, joining fee)
- Maximum membership (or no limit)
- How to leave voluntarily
- Grounds for removal (non-payment, misconduct)
- What happens to a departing member's money
3. Contributions
- Monthly amount
- Due date
- Accepted payment methods
- Grace period (if any)
- Late payment penalties — amount and when they apply
4. Loans
- Who can borrow (minimum membership period)
- Maximum loan amount (e.g., 2x contributions)
- Interest rate and how it's calculated
- Repayment period and schedule
- What happens on default
- Guarantor requirements
5. Welfare
- What events qualify (medical, bereavement, childbirth, etc.)
- Payout amounts per category
- Documentation required
- Waiting period for new members
- Annual review process
6. Investments
- Who proposes investments
- Approval process (e.g., 2/3 majority vote)
- Maximum percentage of savings that can be invested
- Who manages the investment
- How gains and losses are distributed
7. Roles and Elections
- Positions (chairperson, secretary, treasurer, plus any others)
- Term length (typically 1-2 years)
- Election process
- Responsibilities of each role
- What happens if an official can't continue
8. Meetings
- Frequency (monthly, quarterly)
- Quorum requirement (e.g., 50% + 1)
- How decisions are made (simple majority, 2/3 majority for major decisions)
- Who keeps minutes
9. Disputes
- Internal resolution process (first step)
- Mediation (if internal fails)
- Final resolution mechanism
10. Dissolution
- How the group can be dissolved (unanimous vote? 2/3 majority?)
- How assets are divided
- How debts are settled
- Timeline for final settlement
Keep It Simple
A 3-5 page constitution that everyone reads is infinitely more valuable than a 30-page one that nobody opens. Use plain language, not legal jargon. Number every clause for easy reference.
Review Annually
Your constitution should be a living document. At your annual general meeting, review it. Things change — contribution amounts increase, new investment types emerge, membership grows. Update the document and have everyone sign the new version.
Store It Digitally
A single printed copy in the secretary's drawer helps nobody. Upload it to your chama management platform so every member can access it anytime from their phone.