CONSTITUTION
NAME OF THE GROUP
“Motto”
CHAPTER ONE
BACKGROUND INFORMATION
Explain how the group was formed.
Talk about founders/ officials
Talk about memberships and any affiliation
Any other information
CHAPTER TWO
VISION
MISSION
CORE VALUES
GOALS AND OBJECTIVES
examples
1. To pool funds together through members monthly contributions.
2. To empower all members by providing them with loans at low interest rates i.e 1% on
reducing balance per month.
3. To invest in real estate or any other property, asset or business agreed upon by a majority
vote from members.
CHAPTER THREE
(a) COMMITTEE
The committee shall consist of the following; talk about the committee members
(b) DUTIES AND RESPONSIBILITIES
Talk about the duties of each committee member.
Unless decided otherwise by members all documents and contract shall be signed on behalf of the
group by; chairperson, treasurer, secretary.
(c) Membership
Members of the group;
Shall constitute of the original members who facilitated the formation of the group.
Each member must be a contributor of the monthly amount agreed upon by the
majority vote.
Shall actively participate in the day-to-day group affairs.
(a) Registration of a new member
Talk about the terms of registration for a new member
CHAPTER FOUR:
CONTRIBUTIONS/LOANS
(a) Monthly contribution
Talk about amount, deadline for contribution, fines applicable in cases of default
Talk about where your money shall be channeled
Any other relevant issue in regards to contributions
(b) Loans
Talk about the maximum loan to be issued, duration and interests rates per month or per
period borrowed. Any processing fee to be charged.
The loan form to be filled
How shall the loan be disbursed?
Fines to be charged in case of default
Minimum payments
Any other issue members would like to add about loans
PROPOSED LOANS TABLE AND PAYMENT PERIOD
AMOUNT IN KSH PAYMENT PERIOD IN MONTHS
2,000 – 20,000 3
20,001 – 50,000 6
50,001 – 100,000 12
100,001 – 200,000 18
200,001 – 300,000 24
300,001 – 500,000 36
CHAPTER FIVE
MEETINGS
(i) Frequency of meetings, AGMs
(ii) Fines in case of absence
(iii) Minimum meeting member can attend
CHAPTER SIX
NETWORTH CALCULATION
All members are equal.
Member shares
Property value and division in cases of investment
CHAPTER SEVEN
TERMINATION OF MEMBERSHIP
One ceases to be a member in case of the following;
(a) Withdrawal
(b) Dismissal
(c) Death
(a) WITHDRAWAL
A member wishing to leave the group will;
Period of notice, Percentage to be forfeited
(b) DISMISSAL
Talk about what can lead to dismissal, disciplinary process
Refund of member shares
(c) DEATH
Refund in cases of death of a member
CHAPTER EIGHT
FUNDS
CHAPTER NINE
ELECTIONS
Frequency of elections
CHAPTER TEN
DISSOLUTIONS/AMMENDMENTS
(a) DISSOLUTIONS-
Talk about how to dissolve the CHAMA
(b) AMMENDMENTS
Talk about how the constitution shall be amended
NOTE
Any other thing that members may wish to add. The final decision is held by majority vote
