How to Register a Self-Help Group in Kenya

How to Register a Self-Help Group in Kenya. In case you were planning on transforming your merry-go-round form of chama with your acquaintances into an investment, this article will take you through the step by step process of formalizing it legally.

What are self-help groups?

Self-help groups or simply chamas, are Kenyan colloquialism for investment groups, which have been, for the longest time, a sure path to financial freedom.

While a good many of them fizzle out before making any substantial gains, several others grow to become financial institutions of power, influence, and wealth.

Previously, chamas were considered a women’s affair, but this has evolved as we are now seeing more men engaging in self-help groups.

Analysts have observed that these groups enable persons from varying income brackets to face difficulties and opportunities as a group as opposed to individuals.

Chamas enable people to maintain and develop their resources by encouraging saving and making available lump sums which can be used for small scale investment or household needs- school fees and so on.

In this way, they make money ‘work’ because small amounts can be contributed and made available to everyone to use for welfare or investment needs.

Through this process, the funds become a collective asset rather than an individual one, so enabling upliftment of the community.

Advantages of registering a Self-help group

Here are the benefits of registering a chama in Kenya:

1. The Kenyan constitution will recognize it as a body; hence it can conduct various business activities under its name.

2. The self-help group can own assets on behalf of the participants. As such, the members feel a sense of security contributing their hard-earned cash to the chama.

3. Registering a chama helps the members be conversant with tax implications of their property dealings. This is especially true when the group intends to sell and distribute the cash among the associates.

Note: Members in a chama need to realize that they are jointly responsible for all debts and financial obligations of the group; hence, all need to agree with the intentions to take a loan.

Register a Self-Help Group in Kenya Procedure

To register a for a self-help group i.e.(Youth / Women /Men /PWD/ Older persons/ Community Project group) one has to make an application with the Ministry of Labour and Social Protection.

Step 1 : Organize yourselves in a group of at least 10 members
Step 2 : Draft the group’s constitution

A constitution is the group’s guide. Once this has been drafted and approved, every member should get a copy which they sign and commit to the terms and conditions.
The constitution identifies the group’s mission, goals, and objectives.

Step 3 : Hold meeting to Elect groups officials and to seeking registration

The three most important slots to be filled are the Chairman, Secretary and Treasurer.
It’s important to have these positions occupied for accountability and organisation purposes of the group.
Roles under these titles should also be defined, written down, and put in a document (preferably the constitution) so that every official understands and agrees to their scope of their work.
It is important that the office of the secretary must know how to read and write.
The minutes of the meeting seeking registration and showing elected officials are to be attached to the application forms.

Step 4 : Registrations with the Ministry of Labour and Social Protection’

Visit the either Sub-county’s labour and social protection offices, Sub-county’s Public Service, Youth and Gender Affairs Offices or Huduma centre to make the application with the respective officer.
You will be given a APPLICATION FORM FOR REGISTRATION OF SELF- HELP GROUP/COMMUNITY PROJECT to fill.
Fill the Registration Form and make sure you tick with type of self-help group you want to register i.e. (Youth , Women , men , Mixed, PWD, Older persons or Community Project)
Attach the following REQUIREMENTS:

i. The groups constitution

ii. Minutes of the meeting seeking registration and showing elected officials

iii. List of All members duly signed with Name/Position/ID No. and Signatures.

iv. Copies of National Identity Cards of all group members

Step 5 : Payment of applicable fees

Pay the Approved Registration fee of Ksh.1, 000/= and lodge the Application at the office of the Sub-county social protection officer or Huduma Centre

Step 6 : Obtain the certificate

It takes 5 working days for the Registration to be approved and a Certificate of Registration is issued by the Ministry of Labour and Social Protection Office

Required Documents

Groups constitution
Minutes of the meeting seeking registration and showing elected officials MUST be attached to the application forms.
List of All members duly signed with Name/Position/ID No. and Signatures.
Copies of National Identity Cards of all group members
Registration fees receipt.

Office Locations & Contacts

Ministry of Labour and Social Protection,
State Department for Social Protection,
Bishops Road, Social Security House
P.O. Box 40326 – 00100, Nairobi
Telephone: +254 (0) 2729800
Fax: +254 020 2726497
Email: ps@socialprotection.go.ke / info@socialprotection.go.ke
Website: Ministry of Labour and Social Protection Website

Eligibility – Register a Self-Help Group in Kenya

A group should have at least 10 members
Secretary must Know how to read and write
Women groups are only to consist of women and vice versa for men group
For PWD ,70% of the group’s members should PWD
For Older persons group,,70% of the group’s members should be aged above 65 years
For youth groups ,70% of the group’s members should be aged between 18 and 35 (youths).

Fees – Register a Self-Help Group in Kenya

Registration fees of Ksh 1,000.
membership cards going for Khs30 for each member

Validity – Register a Self-Help Group in Kenya

The certificate has to be renewed annually.

Documents to Use – Register a Self-Help Group in Kenya

A sample of the document can be downloaded through the following link: APPLICATION FORM FOR REGISTRATION OF SELF- HELP GROUP/COMMUNITY PROJECT

Processing Time

5 working days is processed from Huduma centre
2 weeks if processes from the Sub county Offices.

Instructions

Organize yourselves in a group of at least 10 members
Identify the mission, goals, and objectives of the group
Draft the groups’ constitution
Ensure each of the group members has a national ID
Go to the District Gender and Social Development Office
Submit details of your group and fill the registration form.
Have each member pay registration fees, and pay the certificate fees
Obtain the certificate

Required Information

Name of the Group
Names of Members
Proof of Identity for each member
Mission and objectives of the Group
Name of the Group
Names of Members
Proof of Identity for each member
Mission and objectives of the Group
Physical ad postal adress

Need for the Document

The registration gives the group formal recognition and listed by in the government records.
This allows the group to legally carry out its activities in Kenya.

Information which might help

A group should be registered in the district it resides in the district gender and social Development Offices. These offices are located in all districts around the country.
Some of the activities commonly carried out through youth Groups are:

i. Merry go rounds

ii. Community project

iii. Crop farming

iv. Cultural/traditional activities

v. Environment Conservation

vi. Financial services

vii. Fishery

viii. Health care

ix. livestock rearing

x. Poultry keeping

xi. Skills development

xii. Tourism

xiii. Youth empowerment

xiv. Merry-go-round

xv. Table banking

After Registration, the Group/Community Project Must adhere to the following;

i. Renew the Certificate Annually. A fee of Ksh 100 is charged

ii. Submit Quarterly Progress Reports to the Registering Authority

iii. Allow accessibility of records to the registering authority upon request or when demanded to do so

NOTE: Failure to adhere to the above requirements will result to Non-registration/Deregistration.

External Links

Huduma Centre Charter : Huduma Centre Charter

Others – Register a Self-Help Group in Kenya

Every registered group must furnish the registrar with the annual returns at a fee of Sh100. Failure to file returns is an offence and a group that fails to do the same can be de-registered.
Any change in group officials or office titles should be notified to the registrar within 14 days of notice and signed with three officials.
A group planning to amend its constitution must obtain permission from the registrar. This too must be signed by three officials, the chairperson, secretary and treasurer.
Registered groups are required to hold an annual general meeting once a year and all members must be invited.