How to Structure a Serious Chama in Kenya: Step-by-Step Guide for 2026”
TL;DR
- Decide why your Chama exists
- Choose the type of Chama (savings, investment, business)
- Set rules & constitution
- Recruit responsible members
- Decide contributions & accounts
- Hold regular meetings
- Build a plan for savings & investments
- Track finances and share progress
What is a Chama?
A chama is a group of people pooling money together. In Kenya, it’s one of the easiest ways to save or invest. Chamas are used for short-term savings, long-term investments, or starting small businesses.
It works because everyone contributes regularly, and decisions are made as a group. Whether you live in Nairobi, Kisumu, or a small town, a well-structured Chama can grow your money faster than saving alone.
1. Decide the Purpose of Your Chama
Be clear about your Chama’s purpose:
- Is it mainly a savings group?
- Is it for investments?
- Or focused on a business venture?
Write a simple mission statement so everyone knows the goal. Example: “We pool KES 5,000 monthly to invest in MMFs and SACCO shares with the aim of earning 10–12% annually.”
Related Posts: Chama Contributions in Kenya | Chama vs Individual Investing in Kenya
2. Pick the Type of Chama
| Type | Description | Example | Best For |
|---|---|---|---|
| Savings Chama | Pool money to rotate among members | Weekly/Monthly money circles | Quick access to cash, small goals |
| Investment Chama | Pool money to invest in assets | Money Market Funds, SACCO shares | Medium-term growth |
| Business Chama | Pool money to start or run a business | Small kiosks, agriculture projects | Higher returns but higher risk |
3. Make Rules and a Constitution
A clear set of rules keeps your Chama running smoothly:
- Who can join?
- How much must members contribute?
- How often do you meet?
- How are decisions made?
- What happens if someone defaults?
4. Recruit Trustworthy Members
Trust is everything. Choose people who can:
- Contribute regularly
- Follow the rules
- Respect decisions
Keep the group small at first. Add more members once your systems work well.
5. Set Contributions and Accounts
Decide how much each member contributes and how often. Example: 10 members contributing KES 5,000 monthly = KES 50,000 a month. Open a bank account or mobile money wallet strictly for Chama use.
Related: Chama Contributions in Kenya
6. Hold Regular Meetings
- Meet at least once a month to review contributions and balances
- Discuss investments or expenses
- Vote on new plans
Using WhatsApp or Telegram keeps communication fast and documented.
7. Plan for Savings and Investments
A Chama should make the money work. Common choices:
- Money Market Funds (MMFs) – low risk and liquid
- SACCO shares – stable dividends
- Government securities like T-bills
8. Track Progress and Share Results
- Keep a ledger or spreadsheet
- Share updates at every meeting
- Highlight wins and learn from mistakes
Visual tools like Canva charts help members quickly see how the Chama is doing.
9. Common Mistakes to Avoid
- No rules – leads to disputes
- Accepting unreliable members
- Skipping meetings
- Leaving money idle
10. Example Scenario
- 10 members contributing KES 5,000 each month
- Monthly pool: KES 50,000
- Yearly total: KES 600,000
Invested smartly (MMFs, SACCO shares), the group could earn extra returns while keeping contributions safe.
Share & Get Involved
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Postine Ngeli runs Money Market Hub Kenya. He explains saving, investing, and Chama management in simple ways that Kenyans can understand and apply.
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