Today, in Kenya, self help groups (famously known as Chama) have become the best saving method. An old notion that “Chamas are for women” is long gone as many of such groups now involve both men and women. Most of these self help groups have grown into large business ventures which in turn positively impact development and economic growth. What fuels a self help group is the notion of shared goals. This means that a member can present his/her idea and the rest of the group supports in implementation of that idea.
Requirements and procedure for Chama registration in Kenya
Members of self help groups in Kenya can now register at the Ministry of Gender, Children and Social Development. For a self help group to be registered it should meet the following:
- The group must be composed of at-least ten (10) members.
- The group must have a clearly defined set of constitution. This constitution is what describes the group, its activities, objectives and membership.
- The self help group must hold at-least one Annual General Meeting (AGM) in the presence of every group member.
- You will be needed to avail a postal address and names of the group officials.
- For a self help group to be registered, you will be required to pay a registration fee of 1,000 Kenyan shillings. This follows a successful name search for the group.
- For every registered group, it is required that they conduct annual returns at the office of the registrar. This is done at a fee of 100 Kenyan shillings. Failure to submit your returns may lead to deregistration of the group. (Related: How to file annual returns in Kenya)
- If a group intends to change their details, then they must notify the registrar with a 14days notice that has been signed by three officials of the group (i.e the chairperson, the secretary and the treasurer). A group must obtain permission from the registrar if there are plans to change the group name or amend the constitution.
- Other payments that might be incurred from time to time include name search, change of officials, application for amendment of the constitution, change of postal address and application for dissolution of the group.
Why register a Chama/Self help group?
Chama registration for self help groups has its own benefits. Some of the advantages of registering a Chama in Kenya are;
- The group is fully recognized by law as an independent body. This gives the group a better opportunity of conducting business
- The legal Chama registration process is legal. This gives its members confidence even as they invest their money on the group.
- The group is eligible to own property under its name.
Briantony International Consultants offers services touching on Chama registration for youth and women groups in Kenya. We also provide services on file returns, company registration, business licensing, consultancy, business name search and registration. We also act as company secretaries.
