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Chama Loans and Table Banking in Kenya: 2026 Guide

How chamas and table banking work in Kenya: registering a self-help group, chama bank and M-PESA accounts, group loans, and the Hustler Fund group product.

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by Reviewed by Michael Mwangi 9 min read Updated 19 October 2026Verified 19 Oct 2026

Registering the group

Most chamas register as self-help groups with the State Department for Social Protection, at sub-county offices or one of 53 Huduma centres. You need:

  • A name search
  • Minutes of the meeting that elected the officials
  • A signed members list with names, positions, ID numbers and phone numbers
  • ID copies for every member
  • The group constitution
Self-help groupCommunity-based organisation
Registration feeKSh 1,000KSh 5,000
RenewalAnnually after the first two yearsAnnually
ReportsAnnual progress reportsQuarterly progress reports

How table banking works

  1. Members agree the contribution, the interest rate on loans and the repayment period in the constitution.
  2. At each meeting, members pay in their contribution and any loan repayments.
  3. The pot is lent out to members who applied, often the same day.
  4. Interest earned is shared out at the end of the cycle, usually in proportion to savings.

Keep written records signed at every meeting, and move money through M-PESA or a bank so there is a trail. Work out what a member will repay with the loan repayment calculator.

Where to keep chama money

  • M-PESA Chama Account: SMS CHAMA to 21366 or visit a Safaricom shop. Set-up takes 48 hours, holds up to KSh 100 million, and the chama is not charged; members pay a fee when they contribute.
  • Co-op Bank Mshiriki Current Account: for registered or informal groups (at least 3 members). No minimum balance, no ledger fee, free deposits and withdrawals.
  • Equity Group Account: no operating balance and no withdrawal charges, with multiple approvals through Equitel PINs. Needs a registration certificate, constitution and certified minutes.
  • KCB Chama Solutions: KCB's page does not list terms. Ask at a branch.

Borrowing as a group

Hustler Fund group loan

Groups register on *254#. Groups registered with the Micro and Small Enterprises Authority and unregistered groups can both join. Rules from the official Hustler Fund guide:

  • 10 to 100 members, all on the same network, with 3 officials
  • Members aged 18 or over with a national ID and a SIM active for 90 days
  • Up to KSh 1,000,000 at 7 percent a year
  • The group limit is the total of members' personal limits
  • 5 random members must approve each request
  • 95 percent is paid out and 5 percent goes to group savings
  • Repay within 30 days; a 1.5 percent penalty applies after that

Many news articles say the group loan runs for 6 months with a KSh 20,000 minimum. The official guide says 30 days and gives no minimum. Go by the official guide and check the terms on *254# before you borrow.

Bank group loans

Co-op Bank's Club Special Loan lends up to KSh 50 million or 5 times the group's savings, over up to 72 months, to registered groups whose account has run for 6 months.

When to become a SACCO

A chama that wants to take deposits from many members and lend larger amounts over years usually outgrows the self-help structure. SACCOs are registered under the Cooperative Societies Act, and deposit-taking SACCOs are supervised by SASRA. See how to join a SACCO and the SASRA licensed list.

Tax

We found no KRA guidance written specifically for chamas. If your group invests or earns interest, ask a tax practitioner whether it needs its own KRA PIN and returns. Banks already ask for a group KRA PIN to open some accounts.

Sources, read 19 October 2026

  1. State Department for Social Protection, group registration, socialprotection.go.ke.
  2. Safaricom, M-PESA Chama Account FAQ (updated 22 Sep 2023), safaricom.co.ke.
  3. Co-op Bank Mshiriki Current Account and Club Special Loan, co-opbank.co.ke.
  4. Equity Group Account, equitygroupholdings.com; KCB Chama Solutions, ke.kcbgroup.com.
  5. Hustler Fund FAQs and HustlerFundGroup guide, hustlerfund.go.ke.
  6. SASRA, sasra.go.ke.

FAQ

How do I register a chama in Kenya?

Register it as a self-help group with the State Department for Social Protection at a sub-county office or a Huduma centre. You need a name search, minutes showing the elected officials, a signed members list with names, positions, ID and phone numbers, ID copies for all members and the group constitution. The fee is KSh 1,000.

What is table banking?

Members contribute savings at each meeting and the money is lent out to members on the spot, then repaid with interest into the same pot. The group sets the interest rate and the rules in its constitution. Nothing is held in a bank between meetings, which keeps it simple but means the records and the treasurer carry the risk.

Can a chama have an M-PESA account?

Yes. Safaricom offers an M-PESA Chama Account. Apply at a Safaricom shop or SMS CHAMA to 21366. It takes about 48 hours and needs an official ID and PIN certificate, the group registration certificate and a mandate. It holds up to KSh 100 million, and money moves to the group bank account through a portal.

How does the Hustler Fund group loan work?

Groups of 10 to 100 members with 3 officials join on *254#. The official guide says groups can borrow up to KSh 1 million at 7 percent a year, every request is approved by 5 random members, 95 percent is paid out and 5 percent goes to group savings, and the loan is due in 30 days, with a 1.5 percent penalty after that.

Is a chama the same as a SACCO?

No. A chama registered as a self-help group sits under Social Protection. A SACCO is a cooperative under the Cooperative Societies Act, and deposit-taking SACCOs are supervised by SASRA. A SACCO can usually lend more and for longer.

Further reading

Curated external sources we cite. Open in a new tab.