A Chama is a group of individuals who come together with the aim of pooling their resources to invest in different ventures.

These ventures can be real estate, stocks, or any other investment that the members deem suitable.

In Kenya, chamas are very popular, and they are seen as a way of achieving financial freedom. If you are thinking of registering a chama in Kenya, this article is for you.

Create a Name

The first step in registering a chama is to come up with a name. The name should be unique and not be similar to any other chama in the country.

Once you have a name, you need to conduct a search on the eCitizen website to ensure that the name is available.

If the name is available, you can proceed to reserve the name. The name reservation fee is Kshs. 100, and it is valid for 30 days.

After reserving the name, the next step is to register the chama. To register the chama, you will need to have a minimum of five members.

The members should be at least 18 years of age and Kenyan citizens. The registration process can be done online through the eCitizen portal.

You will need to create an account on the portal if you don't have one. Once you have an account, you can proceed to fill in the chama registration form.

The Chama registration form requires you to provide the following details:

  1. Chama name
  2. Physical address of the chama
  3. Names and ID numbers of the members
  4. Email addresses and phone numbers of the members
  5. Proposed activities of the chama
  6. The contribution amount per member
  7. The duration of the chama

Once you have filled in all the required details, you can proceed to pay the registration fee. The registration fee is Kshs. 1,000, and it can be paid through mobile money or online banking.

After paying the fee, you will receive a confirmation message, and your chama will be registered.

After registering your chama, the next step is to obtain a chama constitution. A chama constitution is a set of rules and regulations that govern the operations of the chama. The constitution should be in line with the Kenyan laws, and it should be signed by all the members of the chama. If you are not sure how to write a chama constitution, you can seek the services of a lawyer.

The chama constitution should contain the following details:

  • Name of the chama
  • Objectives of the chama
  • Membership details
  • Contribution amounts per member
  • Meeting frequency and venue
  • Roles and responsibilities of the members
  • Procedure for admitting new members
  • Procedure for withdrawing from the chama
  • Procedure for expelling members
  • Procedure for winding up the chama

After obtaining the chama constitution, the next step is to open a chama bank account. The bank account should be in the name of the chama, and it should be used for all chama transactions. You can open a chama bank account in any bank that is convenient for the members.

To open a chama bank account, you will need to provide the following documents:

  • Chama registration certificate
  • Chama constitution
  • Minutes of the meeting where the decision to open the bank account was made
  • Identification documents of the signatories
  • Two passport-size photos of the signatories

After opening the bank account, the next step is to hold the first Chama meeting. The meeting should be used to discuss the chama objectives, investment opportunities, and the contribution amounts per member.