Minimum Contribution: Ksh 500 per member, to be contributed twice a week.
Contribution Days: Contribution should be made every Tuesday and Saturday.
Deposit Requirement: Each member must deposit 12 times the amount of the twice-weekly contribution, which is Ksh 6,000 (12 x 500). This deposit can be paid in installments within a period of 6 months and will serve as a buffer in case of default, earning interest to benefit the member.
2. Distribution Schedule
With contributions made twice a week, each member contributes Ksh 500 every Tuesday and Saturday.
Total contribution per week per member: Ksh 1,000 (500 x 2).
Contributions are pooled, and two members will receive the total contribution amount every week.
Example:
Each member contributes Ksh 500 twice a week, making it Ksh 12,000 per week (500 x 2 x 12 members).
The total weekly contribution of Ksh 12,000 will be split equally between two members, with each receiving Ksh 6,000.
This cycle continues, allowing all members to receive contributions within approximately 6 weeks.
3. Punitive Measures for Late Contributions
A fine of Ksh 50 per day for each missed contribution.
After one week of non-payment, the default amount may be deducted from the member's deposit.
If a member defaults on their contributions six times consecutively, they risk being suspended from the group until they catch up with payments.
Persistent defaulters may face permanent removal from the group, with the remaining deposit returned minus any penalties and unpaid contributions.
4. Importance of Active Participation
Shared Benefits: Participating ensures that members have access to pooled funds, which they can use for personal or business needs during their designated weeks.
Financial Growth: Regular contributions help members’ deposits earn interest, contributing to long-term savings.
Support Network: Active members foster a supportive community, where everyone benefits from collective financial assistance.
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