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By: Anne Kamau

What is Table Banking (TB?)

Table banking is a group based funding strategy in
which members save once per month and the money is
immediately borrowed by the members.
Table banking has the following features:
Fund is owned by the group
The group has set rules and regulations for lending and
Members pay interest on the loan
The interest accumulated is shared through bonuses
It has group credit committee (GCC) which receives
and appraises the loan applications

Table Banking group formation

A group shall consist of 15-30 members.
The concept does not deal with individual clients but
rather with groups. In order for one to obtain service,
one should join or organize to form a group.
The membership, leadership and governance
structures of the group must comply with the gender
rule where at least 1/3 of the membership and
leadership roles are undertaken by either gender.
An exception to this rule shall only apply to groups
whose membership is exclusively of the same gender.

Membership Eligibility Criteria

Male- Must be between18-35 years of age and hold a valid Kenyan

National Identity Card
Female member be of 18years and above and hold a valid Kenyan
National Identity Card
A member must:
Be well known to other group members
Be accepted by the other group members
Be willing to attend group monthly meetings
Be willing to participate in group trainings
Show commitment through building shares, obtaining credit and repaying
the credit
Be engaged or willing to engage in an income generating activity that is
viable, legal and socially acceptable either as a group or as an individual
Not belong to more than one group for the purposes of benefitting from
Uwezo Fund.

Group Registration
All groups must be registered with the department of social
services, co-operative or Registrar of Societies within their
areas of operations.
The group officials verify with the government authority
whether the proposed group names already exist. If not, then
one of the names is chosen. The officials collect the
registration form and with the fill in the details as required.
The officials ensure that the form is signed and stamped as
required. The duly completed form must have the following
attachments: Minutes of the group meetings;
The group constitution;
Registration fee;
The group officials follow up on the certificate of registration
for the group.

Group formation stages and patterns of

behaviour within a group
A typical group goes through five important
stages of development and ischaracterized by
definite patterns of behaviour as discussed


Stage 1: Forming the group
This is the initial stage in the life of a group. The stage is characterized
by members seeking safety and protection, tentativeness of response,
seeking contact with others and demonstrating dependency on
existing authority figures. Members at this stage are also positive and
anxious as they have not fully understood the purpose of the
group.This stage can last for some time as members engage in busy
type of activity.
Stage 2: storming
Members seek out familiar or similar individuals and begin a deeper
sharing of self. Continued attention to the subgroup creates a
differentiation in the group. It is at this stage where many groups
collapse if these differences are not conclusively addressed.

Stage 3: Norming
Members begin to open up and seek out other members in the
group. Efforts are made to establish various norms for task
performance. Members begin to take greater responsibility for their
own work.
Stage 4: performing
This is a stage of a fully functional group where members see
themselves as a group and get involved in the task. Each person
makes a contribution and the authority figure is also seen as a part
of the group. Group norms are followed and collective pressure is
exerted to ensure the effectiveness of the group. The group
redefines its goals in the light of information from the outside
environment and shows.

Stage 5: Adjourning
Many groups will reach this stage eventually. For
example, project groups exist for only a fixed
period, and even permanent groups may be
disbanded through organizational restructuring.
Members who like routine, or who have
developed close working relationships with other
members, may find this stage difficult,
particularly if their future now looks uncertain

Composition of a Group
With the 15-30 members, each member:
Pays a non-refundable Registration Fee of a minimum
Kshs.150 to the group
Acquire a passbook. This book serves as a dual purpose:
As the members personal identification card since it
contains basic information on each member i.e. the group
name, an identification number, the members full name
and address among other details.
As a personal receipt or voucher book.
Makes a minimum savings per month of kshs.100
Contributes to the groups insurance account with a
minimum of Kshs. 20; this shall gradually grow to match the
loan advanced

Group Constitution

The group must have a written constitution that gives precise information about
the group. This contains information such as:
Group name
When the group was formed
Group objectives and activities
Group membership
Election of group officials
Committee responsibilities and duties
Group meetings
The rules and regulations of the group
Group records, savings, loan and default management
Member termination
Group account and signatories
Dissolution of the group
NB: It is advisable to keep the written constitution at the back of the group file to
facilitate occasional update.

Group Work
Group registration, formation & setting rules
and regulations
In your groups discuss:
List required documents for group registration
Assess the familiarity of the individual
members in your group and commitment to
group activities
List some of the internal rules and regulations
that will guide group activities

Any questions