CONSTITUTION OF LWALE SELF HELP GROUP

1 (a) NAME
The name of the Group shall be LWALE SELF HELP GROUP

(b) REGISTERED ADDRESS

Postal address: ______________________________________
Physical address_____________________________________
Email: ____________________________________________

2. VISION
To develop strategies to alleviate poverty in society through creation of job opportunities and
wealth.

3. MISSION
To be a leading group in transforming lives of members socially ,morally ,spiritually and
economically.

4. OBJECTIVES
The aims and objectives of the group shall be:
a) To promote activities that contributes towards achieving economic and social independence
for its members.
b) To mobilize resources for the establishment and development for implementation of
prioritized activities.
c) To support each other in undertaking and venturing into viable business enterprises.
d) To inculcate spirit of love ,peace and team work

5. GUIDING PRINCIPLES
Officials and members of the Group will uphold the following guiding principles
a) Emphasize utmost transparency, accountability and fairness in the management and
disbursement of funds

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b) Uphold and respect members’ fundamental rights.
c) All members of the Group shall have equal right of access to information about the
existence of funding available for development of the group.
d) The committee shall uphold an effective feedback mechanism by honouring all
correspondence through writing.
e) All members of the Group shall be treated as equals
f) The Group shall be run in an efficient and sustainable manner.
g) The Group shall be politically non-partisan.

6. MEMBERSHIP
Membership to the Group is open to:
a) Any willing person /couple of age 18 years and above.
b) Membership fee of Ksh 500 which is non refundable shall be paid by each member.

6.1 RIGHTS AND OBLIGATIONS OF MEMBERS

i. Participate fully in the proceedings and activities of the Group

ii. Elect or be elected to any organ of the Group
iii. Make use of the facilities of the Group as shall be prescribed from time to time by the
executive committee
iv. Express their opinions in any appropriate manner
v. Meet their financial obligations as shall be determined from time to time by the
management committee and or the Group
vi. Be elected or nominated as representatives in any of the Group’s undertakings
vii. Be registered in the register of the Group
viii. Demand that those elected in position of responsibility, report back to the Group and give
good reasons for all their actions, decisions and activities.
ix. Be tolerant and accept other people's divergent views.
x. Vote out corrupt people before the end of their term of office

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6.2 WITHDRAWAL/CESSATION OF MEMBERSHIP
(a) The Group may by a resolution of the executive committee require a member to temporally
or permanently withdraw from membership, if the conduct of such a member damages the
dignity and reputation of the Group and/or is deemed adverse to the smooth running of the
Group.
(b) A member who fails to meet her financial obligation one-year after it is due shall have his
membership terminated and her name struck off the register of the members of the Group.
The executive committee shall have powers to reinstate such a one on payment of the outstanding
dues.
(c) A member may resign after giving a one month written notice to the executive committee.
(d) Save as otherwise stated in this constitution, all members whose membership is terminated
shall have the right to appeal in the Annual General Meeting of the group.
e) A member leaving the group is entitled to 100 % of their shares and subject to deductions of
any outstanding loans and administrative fees applicable

7. ACTIVITIES
A. Welfare Activities: To financially assist members during time of need.
(a) When a member weds each member to pay ksh 500
(b) When a member dies each member to pay ksh 1500
(c) If a member losses a spouse each member to pay ksh 1000
(d) During baby shower, every member to pay ksh 500
(d) During house warming each member shall pay ksh 300
(e) When a member losses a biological child each member shall pay ksh 500
(f) Incase a member loses a biological parent ,each member shall pay ksh 500
B. Group Loaning and Saving Activity
Under this activity;
 Members shall contribute monthly shares of a minimum Ksh 500 per member per month.
 Members will be loaned three (2) times their total shares.
 A monthly interest of 10% shall be charged on the loaned money
 Repayment period is 1 Month ,Thereafter roll over is done up to the 3rd Month ,After the 3rd Month
asset recovery will be done to recover the outstanding loan.

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 Loan forms must be filled to indicate the security to be recovered for any outstanding loan beyond 3
months

8. OFFICE BEARERS
The office bearers of the Group shall be:
1. The chairperson
2. Vice chairperson
3. The secretary
4. Vice secretary
5. Treasurer

9. DUTIES OF OFFICE BEARERS

a) Chairperson
1) The chairperson shall unless prevented by illness or other sufficient cause preside over all
meetings of the Group.
2) Coordinate the various functions of the group.
3) Ensure that the group’s objectives are being achieved.
4) Be a signatory to the group’s account
5) Shall ensure that all meetings of the group are duly held as and when they fall due.
6) Shall ensure that all the transactions of the group are carried out diligently and above board
and shall be the group’s spokesperson
b) Vice Chairperson
The vice person shall perform any of the duties of the chairperson in her absence or any
other duties delegated to her by the chairperson and or the executive committee.

c) Secretary
1) Shall keep all minutes of all meetings of the group and shall further record and preserve all
daily transactions and proceedings of the group.
2) Shall issue notices convening all meetings of the group.
3) Shall deal with all correspondence of the group under the general supervision of the
committee and other urgent matters associated with the committee.
4) Shall be a signatory to the group’s account.

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c) Vice Secretary
1) The Vice Secretary shall perform any of the duties of the secretary in her absence or any
other duties delegated to her by the secretary and or the committee.

d) The Treasurer
1) Shall receive and disburse out with the authority of the committee all the monies belonging
to the group and shall issue receipts for all monies received by her and preserve vouchers
for all monies paid by her.
2) Shall prepare and maintain an up to date list of all beneficiaries of the group.
3) Shall ensure that all books of accounts are written up, preserved and available for
inspection on a monthly basis by the management committee.
4) Keep an accurate record of funds received for specific activities and all the expenditures.
5) Enforce and observe all financial rules made by the group.
6) Be a mandatory signatory to the group’s account.

10. THE MANAGEMENT COMMITTEE

a) The management committee shall consist of all the office bearers of the group. Such
committee members shall hold office until the following annual general meeting in which
elections are to be held.
b) The management committee shall meet at least once at the end of every 3 months.
c) Any vacancies for members of the committee caused by death or resignation shall be filled
by the management committee co-opting a member until the next general meeting.
d) The management committee shall be responsible for the day-to-day management of the
group and for that purpose may give directions members as the manner in which the affairs
of the group are to be conducted.
e) The members of the committee shall be personally liable for any loss accruing to the group
owing to their own neglect, breach of duty and recklessness and quantifiable loss shall be
recovered summarily from the committee member or members concerned by way of
instituting legal proceedings against the member(s).

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f) The decisions of the committee shall as much as practicable be by consensus and the
quorum for meetings shall not be less than four (4) members out of five (5)
g) The committee shall authorize all monies disbursed on behalf of the group
h) The management committee may establish other subsidiary committees as and when
necessary to perform specific functions for specific time frames.

11. ELECTIONS AND TENURE OF OFFICE

a) Elections shall be held during the Annual General Meeting.Those eligible to vote are
registered members.
b) The term of office of the executive committee is 3 years. A member shall be eligible for
elections for a maximum of two terms.
c) Immediately any office bearer ceases to hold office due to transfer, death, withdrawal,
resignation e.t.c , a by-election shall be held and presided over by the Chairperson. In case
of the Chairperson leaving office, the vice chairperson shall be the presiding officer.
d) If ¾ of the group members have no confidence in any particular office bearer, elections
shall be held immediately to replace the said office bearer.
e) Voting will be through secret ballot
f) Notice of this meeting shall be given to all members of the group at least 21 days before the
date of the meeting.
g) Elections will be supervised by the social services department officers.
h) Handing over will be done by the social services department officers
12) REMOVAL OF OFFICE BEARER

A) Any member can call for a meeting for a vote of no confidence of an office bearer

B) Quorum of the meeting should be 2/3 of registered members

C) If the 2/3 of registered members approve that the office bearer be removed from office another

member is elected to that position.

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13. GENERAL MEETINGS
There shall be two classes of general meetings – annual general meetings and monthly general
meetings.
1) The monthly general meetings shall be held once every month and shall be attended by
all members. The date of the next meeting shall be agreed upon in the preceding meeting:
share and other monthly contributions shall be paid during this meeting
2) The Annual General Meeting shall be held not later than 15th January each year.
a) Notice in writing of such annual general meeting accompanied by annual statement of
accounts and the agenda for the meeting shall be sent to all members not less than 21 days
before the date of the meeting.
b) The agenda for any annual general meeting shall consist of the following;
i. Confirmation of the minutes of the previous annual general meeting.
ii. Chairperson’s address (which will include funds raised, disbursements to current projects
and their performance levels and the vision’s way forward)
iii. Treasurer’s address (which will address income and expenditure and membership issues).
iv. Consideration of the accounts.
v. Appointment of auditors.
vi. Any other business for which notice would have been given or with the approval of the
chairperson.
b) Quorum for general meetings shall not be less than 2/3 of the registered members of the
group.

PROCEDURE AT MEETINGS
a) At meetings of the group the chairperson, or in her absence, vice chairperson, or in the
absence of these officers, a member selected by the meeting shall take the chair.
b) The chairperson may at her discretion limit the number of persons permitted to speak in
favour of or against any motion.
c) Simple voting by a show of hands shall arrive at resolutions. In the case of equality of
votes, the chairperson shall have a second casting vote.
d) Voting by secret ballot will be applied during election of office bearers.

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e) No business shall be transacted at any general meeting unless a quorum of members is
present at the time the meeting proceeds to business; such quorum shall not be less than
half of the total registered members.
f) If within one hour from the time appointed for the meeting a quorum is not present, the
meeting if convened upon the request of members shall be dissolved and in any other case
it shall stand adjourned to a later date. If at the next meeting a quorum is not present within
half an hour from the time appointed for the meeting, the members present shall form a
quorum.
g) Every member shall be entitled to only one vote.
14. AUDIT
a) An auditor shall be appointed for the following year by the annual general meeting.
b) All the group’s records and documents shall be open to inspection of the auditor at any
time.
c) The treasurer shall produce an account of her receipts and payments and a statement of
assets and liabilities made upon a date which shall not be less than 1 week and not more
than 4 weeks before the date of the annual general meeting.
d) The auditor shall examine such accounts, records and documents and furnish a report to
members in what respect they are found to be incorrect, unvourchered or not in accordance
with the law.
e) A copy of the auditor’s report on the accounts and statements together with such accounts
and statements shall be furnished to all members at the same time as the notice convening
the annual general meeting is sent out.
f) An auditor may be paid such fees and remuneration as the general meeting of the group
may decide
g) No auditor shall be an office bearer or a member of the committee

15. FUNDS
1) The funds of the group shall be derived as follows;
a) Monthly share contributions by members.
b) Funds raised through proposals to donors.
c) Incomes/interest and savings resulting from the operations of the group.
d) Donations from private organizations and individuals.

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e) Other appropriate sources as may be identified from time to time.
2) The funds of the group may only be used solely towards the attainment of the objectives of
the group as set forth in this constitution and no further or otherwise, save for the payment
of reasonable and proper expenses for the services rendered by any officer, agent or servant
of the group.
3) All monies and funds shall be received by the treasurer and shall be deposited in the group
account.
4) No payments shall be made out of the bank account without a resolution of the committee
authorizing such payment and the chairperson, secretary and treasurer shall sign all cheques
on such bank accounts. There will be no signing of blank cheques.
5) A sum not exceeding Ksh.5000 may be kept by the treasurer for petty disbursements of
which proper account shall be kept.
6) The committee shall have powers to suspend any office bearer who it has reasonable cause
to believe is not properly accounting for any of the funds or property of the group and shall
have power to appoint another member in his/her place. Such meeting to be convened on a
date not later than 21 days from the date of such suspension and the general meeting shall
have full power to decide what further action shall be taken in the matter.
7) The account shall be opened in the name of LWALE SELF HELP GROUP EQUITY
BANK. The Signatories to the account shall be 1. The Chairperson 2. The Secretary and 3.
The Treasurer. The three must all sign.
8) The financial year of the forum shall be from 1st January to 12th December.
16) RECORD MANAGEMENT
The group shall keep the following records: members register ,shares registers book ,minute
book ,financial statements

17) DISPUTE RESOLUTION

The group shall resolve conflicts through: appointing of a displininary committee

18) AMENDMENTS TO THE CONSTITUTION

i. Bona fide members of the group may sponsor resolutions seeking to amend this
constitution for consideration by the members of the group .Notice of this meeting shall be
given to all members of the group at least 14 days before the date of the meeting.

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 ii. No change may be made to this constitution except with the approval of at least 2/3 of all
eligible members.
iii. Amendments to the constitution of this group must be approved by at least two third
majority of the members’ of the general meeting of the group.
iv. This group may be transformed into another entity through amendments to the constitution
approved by at least two-third majority of the members at a general meeting of the group.
19) INDEMNITY
Office bearers will be liable for loss ,damage or injury caused by acts done in contravention of the
constitution or without authorization if authorization was required or withheld by members of the
group.
20) DISSOLUTION
A special general meeting may be convened expressly for the purpose of the dissolution of the
group if necessary.
a) The group shall not be dissolved except by a resolution passed at a general meeting of
members by a vote of two-thirds of the registered members of the group
b) If no quorum is obtained the proposal to dissolve shall be submitted to a further general
meeting which shall be held 21 days later. Notice of this meeting shall be given to all
members of the group at least 14 days before the date of the meeting. The quorum for this
meeting shall be the number of members present.
c) Provided however, that no dissolution shall be effected until a full inventory of the assets
and liabilities has been prepared and submitted to the Sub County Social Development
Officer ,who would have indicated that they have no objection thereto.
d) When the dissolution of the group has been approved, no further action shall be taken by
the committee and any office bearer of the group other than to get in and liquidate for cash
all the assets of the group. Subject to payment of all debts of the group, the balance thereof
shall be distributed in such other manner as may be resolved by the meeting at which the
resolution for dissolution is passed.
e) If the dissolution of the group is for the purpose of transformation into a new entity, the
constitution of the new entity will automatically replace the present one, which will then
stand repealed. The management committee will then register the new entity in place of
the group.

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21) COMMITMENT CLAUSE
We the undersigned have read the constitution ,we have understood it and will abide by it .We
commit ourselves to the provisions of this constitution.

Membership Name of Member I.d Number Phone Number Signature

Number

Ratified and adopted this ________ day of ______________ 20_____

__________________________ _________________________
Chairperson Secretary

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