Kingdom Bank has moved to clarify the governance and compliance requirements for chamas seeking to open group accounts, underscoring the need for proper documentation and structured leadership before accessing formal banking services.
In a response to an inquiry by Jackson Kamonde on Social media on the process of opening a chama account and accessing loans, the lender outlined a list of mandatory documents aimed at enhancing transparency and protecting members’ savings.
The bank stated that groups must present a certified certificate of registration as proof of legal recognitio
In addition, a certified introduction letter from the District Social Development Officer (DSDO) listing authorised officials is required.
Chamas are also expected to submit certified minutes authorising the opening of an account at a specific Kingdom Bank branch, clearly indicating the authorised signatories and their signing instructions.
Further requirements include a copy of the group’s constitution, a duly completed and signed account opening mandate, and copies of national identity cards and KRA PIN certificates of all authorised officials.
Banking analysts say the strict documentation framework reflects increased regulatory scrutiny on group accounts as financial institutions seek to curb fraud and internal disputes within investment groups.
Although the bank’s response focused on account opening procedures, access to loans is typically tied to compliance with internal credit policies, account activity, and the group’s financial track record.
The clarification highlights the growing formalization of chamas as they transition from informal savings groups to structured investment entities seeking access to mainstream financial services.