Updated 1 November 2026
Updated November 2026
This guide shows how to share chama money fairly, step by step.
The fair way to share chama money is the method your members agreed to in writing before the money came in, applied the same way to everyone and backed by records each member can check. In practice, most Kenyan chamas that save and lend share out like this: every member gets back what they contributed, plus a share of the year’s profit, minus any loan they still owe. Here is how to do that without a fight on share-out day.
How to share chama money fairly: the five steps
1. Start from the constitution
The State Department for Social Protection, which registers self-help groups, asks for the group’s constitution and minutes when you register (see socialprotection.go.ke and our guide on how to register a chama). That constitution is where your share-out rule belongs. If it is silent, agree the rule at a minuted meeting with a quorum before December, not on the day.
2. Close the books first
Write down, for each member: total contributions for the year, loan interest paid, fines paid and any loan balance still owed. Then record group income (bank or MMF interest) and expenses (bank charges, transport, meeting costs). Get the bank statement and the M-Pesa statement for the group account and check them against the treasurer’s book.
3. Work out the profit
Profit = loan interest + fines + other income − expenses. This is the only money that is “shared”; contributions are simply returned to the people who made them.
4. Pick one sharing rule and apply it to everyone
| Rule | How profit is split | Best for |
|---|---|---|
| By contributions | Member’s contributions ÷ all contributions | Groups where members save different amounts |
| Equal | Same amount for every member | Groups with a fixed monthly contribution |
| Mixed | Half by contributions, half equal | Groups that want to reward saving but keep things close |
5. Net off loans and check the cash
Take each member’s unpaid loan off their payout. The payouts should then add up to exactly the cash in the group’s bank and M-Pesa accounts. If they don’t, something was missed: an unrecorded withdrawal, a repayment sent to the treasurer’s personal line, or a bank charge. Fix it before paying anyone.
Our free chama share out calculator does steps 3 to 5 for you and checks the totals against your cash.
The disputes that come up most, and how to settle them
- Late joiners. Sharing by contributions already handles this: someone who joined in June contributed less, so they get a smaller share.
- Members who borrowed and members who didn’t. Borrowers paid the interest that made the profit. If savers feel it is unfair that borrowers also share in it, the rule to agree on is whether profit is split by contributions (which ignores who borrowed) or partly by interest paid.
- Defaulters. A loan bigger than the member’s savings gives a negative payout. Agree in advance whether guarantors cover it, it is carried forward, or the member repays before share-out.
- Fines. Decide whether fines go to profit or to a welfare kitty, and record it in the minutes.
- Keeping seed money. Some groups keep a percentage of the profit so lending can continue in January. Members who leave should get their full share.
Paying out safely
Pay by bank transfer or M-Pesa to each member’s own number, not in cash, so there is a record. Most chama bank accounts need two or three signatories to approve withdrawals; compare options in our best bank for chamas guide. Share the final list with every member before the money moves.
Once the money is out, members can compare money market fund rates or the best Saccos for dividends before spending it.
Knowing how to share chama money fairly comes down to three things: a written rule, books that match the bank statement, and a payout list every member can check.
Related chama guides
Chama Share Out Calculator: Fair Year-End Payouts
Frequently asked questions
Is there a law on how a chama must share its money?
No single law sets a formula for informal chamas. The group’s constitution and minutes govern it. Saccos are different: they are regulated co-operatives and follow the Co-operative Societies Act and their by-laws.
Should profit be shared by contributions or equally?
By contributions is fairer where members save different amounts. Equal sharing works when everyone contributes the same. Whichever you pick, put it in writing.
What if the cash doesn’t match the books?
Don’t share out until you find the gap. Check bank and M-Pesa statements line by line against the treasurer’s records.
Can a member leave before share-out?
That depends on your constitution. Many groups refund contributions minus any loan owed and pay the profit share at year end.
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