Hustler Fund loan for Groups will be rolled out as of 1st March 2023. One of the requirements is a GROUP CERTIFICATE. In this article, we are going to highlight step by step how to register a group in Kenya 2023, in line with Community Groups Registration Act 2022.
What is A self Help Help Group?
A self-help group (SHG) is a community group of like-minded individuals with a common agenda.
Community group” means a voluntary association of individuals from the same community which is self – organized for a common purpose aimed at improving the livelihood of the group members or for a community benefit and includes a special interest group, community project, and community-based organization but shall not include a Public Benefit Organization, Non-Governmental Organization, or groups formed to champion a political cause or contrary to public policy.
The group shall qualify for registration if;
The members are adults
The members have a common purpose
The group comprises;
At least ten (10) persons
In the case of a special interest community group, at least five (5) members
REQUIREMENTS FOR THE REGISTRATION OF A SELF-HELP GROUP/COMMUNITY PROJECT
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./Phone No. and Signatures MUST be attached to the application forms.
Photocopy of IDS of all members
Secretary must Know how to read and write
Application Form MUST be accompanied by the Group/Community Project BY-LAWS/ RULES/
Pay the Approved Registration fee of 1, 000/=.
After Registration, the Group/Community Project Must adhere to the following;
Renew the Certificate Annually
Submit Quarterly Progress Reports to the Registering Authority
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.
Format of Writing Minutes for Registration of a Self Help Group 2023
Indicate Members Present/Absent with apology and without
The agenda shall be;
Naming of group
Elections of office bearers
Registration with the Social Development office
Account Opening (optional)
N/B- Minutes must be signed/ Confirmed by officials.
Format of writing Self Help Group Constitution in Kenya 2023
Title of the Constitution –Indicate the name of the group.
Purpose of the community group– State the reason for which the community group has been established.
Address of the Group/Project- Physical and postal addresses of the project.
Goals –State the broad objectives of the community group.
Specific Objectives– State the means of achieving the goal of the community group.
Values–A statement of the values of the group.
Group activities–A statement of the group’s activities.
Membership- Including eligible members, nature of membership (open Closed), the procedure of joining, the procedure of removal, the procedure of Departure, duties of a member, rights of the member, discipline of members, etc.
Office bearers– Including chairperson, vice-chairperson, secretary, and treasurer; Election or appointment of office bearers; removal or resignation of office Bearers; qualification or disqualification to be office bearers; functions/Roles of office bearers; etc.
Tenure of office bearers– Term of holding office; whether eligible for a new term or not
Group finances– Specific roles and powers of treasurer; sources of funds of the Community group; the management and accounting for the Community group; banking arrangements for the funds of the community group; maintenance of financial records of the community group; auditing of the financial records of the community group; financial reports of the Community group; etc.
Utilization of funds– Authorized expenses of the community group including Remuneration or allowances of employees or staff of the community group; operational expenses of the community group; statutory expenses of the community group such as taxes; etc.
Group Assets– The procedures for handling the distribution, disposal, and sharing of assets upon voluntary dissolution.
Record Management– The types of records that the community group should keep Including members register, member shares register, payment vouchers, cashbook, minute book/file financial statements, etc.
Meetings–Type and frequency of meetings; procedure at meetings; agenda of meetings; records relating to meetings; procedure for the convening of meetings; quorum at meetings; the authorized business of meetings; adoption of certain reports at specified meetings; etc.
Elections– Eligibility to vote; method of voting; supervision of elections; Notice of election; reporting and confirmation of election results; special Dispute resolution procedures regarding elections; transitional procedures Relating to elections, etc.
Dispute resolution-The procedures for handling disputes or conflicts within the group; the acceptable methods of dispute resolution; notice periods relating to disputes or conflicts in the community group; etc
Amendment of the community group constitution-Notice periods relating to amendments to the community group constitution; a quorum for amending the community group constitution; procedure for proposing amendment of community group constitution; transitional procedures regarding amendments; adoption of amendments; etc
Indemnity-Office bearers are protected from liability for activities done on behalf of the community group in good faith; the group is liable to third parties to pay compensation for activities of the group that cause loss, damage, or injury to the third parties; etc. Office bearers liable for loss, damage or injury caused by acts done in contravention of community group constitution or without authorization if authorization was required or withheld by members of the group.
Dissolution– Circumstances under which community group may be dissolved; procedure for the dissolution of community group; notice periods in respect of the dissolution of community group; a quorum for the dissolution of community group; transitional procedures during dissolution; treatments of assets and liabilities of community group after dissolution etc.
Commitment Clause –Community group members should sign and commit to the provisions of the community group constitution.
Self Help Group Registration Form Revised 2022
The Front Page of the SHG Registration Form has the Logo of Kenya, the Ministry of Labour and Social Protection, the State Department For Social Security and Protection, and the Directorate of Social Development. The Applicant is required to indicate the County, Constituency, Sub County, and Ward where the members of the Group hail from or group activities are being undertaken.
Further, the applicant MUST indicate the Municipality, Location, Sub location, and Village of operation. For example, Municipality for Nakuru, Location is Lanet or Free, Sub Location Is Kiratina. The applicant is required to indicate the year in which the group was formed, their Physical address, email and phone, and who mobilized them to register a group.
The applicant must indicate the venue of official meetings, how many meetings were held, and at what time the members were meetings. Consequently, the applicant must indicate the total number of group members. For instance, if the group has 30 members, the applicant will indicate, out of the 30 members, how many are Female and Male; How many of the female/male members have disabilities, how many of the male/female members are Youths (18 to 35 years), and How many of the total members are above the age of 60 years and above ( older Persons) In some instances, you find a member has the age between 36 to 59 and the Form has no space for such. The applicant should skip that.
Next, the Members must indicate the date elections were held, the venue, and who presided over the elections. Further, they should indicate all the Office Bearers and 2 Committee Members( Name, ID, Phone number/Email, and Signature) Attach a separate list of the committee members who are more than 2. Members are advised to write phone numbers as it is not appropriate to reach out to them via email in case of an inquiry.
It’s very important for the group members to indicate the motive or main purpose of forming the group. The objective in a nutshell means what the members want to achieve by forming the group.
The applicant must indicate the activities undertaken by the group members. For instance, one can say they are engaging in Youth Empowerment or Merry go round.
Members must specify the main activity undertaken by the members. For example, Merry Go Round, Contributions, and Savings are some of the main activities. It’s illegal to register a group under Merry go round and engage in other activities such as Land Purchase. It is good to adhere to rules and regulations.
Members are required to state what they intend to achieve in the future after their main objectives have been met. For instance, expanding the business or buying land, investing, etc.
Source of Funds
The Applicant must indicate how the members are going to raise funds for group activities. It can be through contributions or loans The applicants MUST write their names, Phone numbers, and Date of Application duly signed against their names. The applicant must ensure the registration form has been certified by the area Chief or Assistant Chief. For Professionals such as Medics, Teachers, and Engineers, The relevant Technical, Ministry part must be certified. Section 2 is done by the Social Development/ Services office.
What is the Registration Fee For a Self Help Group?
The Registration fee for a self Help Group is Kshs 1000.
What is the Renewal fee For a self Help Group?
The Renewal fee is Kshs 200 and it is done after the first 2 years of registration. N/B The Certificate must be renewed annually after the first 2 years of registration and submit an annual Progressive report, allowing accessibility of group records upon request Director of Social Development, failure to which can lead to deregistration of the group
Amendment of the Constitution
Done during AGM/ Special meeting. Notice is given to members and 2/3 of the members must endorse the decision
Dissolution of Self-Help Group
One month’s Notice of dissolving the group to members and 2/3 of the must endorse it.
Where Can I register Self Help Group in Kenya?
Registration of Self Help Group is Done at All Sub County social services Offices and Huduma Centers