DRAFT CONSTITUTION

OF
TUKIPKA Accumulative Savings and Credit Association.
2024

Preamble:

We, The Tukipka Elite Youth Group (herein referred to as TUKIPKA) are desirous of
forming ourselves into Accumulative Savings and Credit Association (ASCA) herein referred
to as the TUKIPKA ASCA in order to provide financial and non-financial support services to
members through and under the strict mandate of activities. It is upon this context that we do
hereby establish this Constitution. A Management Committee, whose mandate is outlined in this
document, will oversee the implementation of this Constitution, with the support and cooperation
of the members.

Out of a felt need the Tukipka ASCA was created on 5 th March 2022 with a savings range of a
minimum of Ksh ……………..per member per month; No maximum limit to facilitate liquidity,
members are free to contribute their shares upfront but cannot backtrack share payment. There is
also a contribution to the Social Fund of Ksh …………..per member per month and fines as
stipulated.
It is further agreed that any balances and/or contributions will be kept in a bank account and the
banking advice forwarded to the treasurer for circulation to members the Monday after the
deadline.
This constitution thus outlines the roles and responsibilities of the Management Committee and
the members, and administrative and operational procedures regarding and relating to the
TUKIPKA ASCA.
 Background and Rationale

The TUKIPKA ASCA is a Member-owned Institution (MOI) where the sole source of funds is
member contribution and or/equity. The concept of ASCA compromises the premise that;
Credit in this world is scarce and expensive/inaccessible OR so closely related to social ties that
it is free. Savings services are also so rare that people often pay for them instead of earning an
interest on them. The ASCA concept therefore makes use of the social capital (social networks
and relationships) to actualize financial capital (member equity and savings) for the benefit of
group members by making credit accessible and savings profitable. This is its dual mission.

The model borrows much from the internationally recognized merry-go-round schemes e.g.
Rotating Savings and Credit Associations (a.k.a. RoSCAs) by turning them in to Accumulating
Savings and Credit Associations (ASCAs) and thereby bringing in the concept of internal
lending with returns (interest) on savings at the end of a cycle. Two characteristics make an
ASCA group a Member-owned Institution (MOI):

1. The source of funds/finance: internally generated funds (usually in the form of savings
and/or member equity).
2. Ownership and control of the institution: decision-making (and related costs and benefits)
lie with the members.
Article 1
The name of this youth group shall be the Tukipka Accumulative Savings and Credit
Association (ASCA).
Location and Address : Kamasian Ward, Kipkelion West Subcounty, Kericho County
TUKIPKA ASCA is hereby established as a non-political, non- sectarian, voluntary self-help
group of members for the furtherance of the objectives listed hereinafter.
2. Vision: Empowered communities
3. Mission: To strengthen social ties and mobilize support among the members through
optimization of resources and opportunities.
4. Objectives:
The objectives for which this group is established are:
1. To uplift economic status of the members;
2. To help members give each other financial, social, emotional, mental and spiritual
support when necessary;
3. To develop and uphold the best cultural, social, economic heritage of the members;
4. To acquire property and chattels and do such other things as approved by members;
5. To raise and borrow money for all or any of the foregoing objectives in such a manner
and upon such security as may from time to time be determined by the group;
6. To transform into a cooperative society (SACCO) and/or any other relevant & sustainable
investment vehicle at an appropriate time; and
7. To do all such other things as are incidental to or conducive to the attainment of all or any
of the forgoing objectives.
5. Membership
Membership to the group shall be drawn from Kamasian Ward fraternity and subject to character
evaluation by the existing/on-going ASCA members if the group is already in existence.
5.1 Besides the above the following attributes shall be critical for membership. Any person who
wishes to become a member of this group must satisfy the following requirements:
 a.) Be a Kenyan Citizen aged eighteen (18) years and above;
b.) Be of sound mind;
c.) Commitment to the cause of the group
d.) Trustworthy, honest and has a reputation of the same;
e.) Open minded and development conscious; and
f.) Be willing to abide by the rules and regulations of the group;
5.2 Every member of the group shall, on becoming a member, pay a non-refundable registration
fee of Kshs……. Or such other fees as may be prescribed from time to time.
5.3 Every member shall be required to pay a monthly contribution of Kshs…. Or not less than
Ksh...... or such other fee as may be determined by the General meeting of the group from time
to time.
The monthly contribution shall be made on or before the 5th/ 10th day of every month.
5.4 Beneficiary Designation: Every member upon being accepted to the group membership,
shall notify the group of his or her next of kin and the next of kin shall be responsible for the
debts and be entitled to the rights, privileges, obligations, emoluments and dividends of the
deceased member.
5.4.1 In the event of death of a member, the group after satisfying itself and after obtaining such
documentary proof of the death of a member as it may consider necessary, shall pay to the
beneficiary the value of the deceased member’s deposits, after ducting such sums as may be due
by the member to the group, as soon as possible.
5.5 New Members may be added by a two-thirds majority vote of the existing partners. In such
event, the new partner must read this constitution and sign an Acceptance of Membership
agreement indicating that he/she has read & understood the contitution so and is willing to
comply with all the provisions therein. The date of this signature is heretofore called the
inception date of the partner. Kshs…… or the purchase of …...shares of the investment group
(whichever is greater) is expected to be the initial deposit, plus a Kshs…... (non-refundable)
entry fee.
5.6 Withdrawal from the group:
A. By Death or Incapacity:
In the event of death, or physical incapacity, or if a member is unable to participate
actively in the group for reasons to be approved by 2/3 vote of all the members, one
hundred percent (100%) of said member’s capital account, less expenses incurred to
liquidate assets to satisfy said amount, shall be made available for payment to the
member’s designated beneficiary.
 1. The group may purchase the said capital account or sell to any member acceptable to a
two-thirds majority of the remaining members.
2. The group may liquidate assets to satisfy said amount.
B. By Voluntary Withdrawal:
A member desiring to withdraw from the group, may do so submitting a two (2) months
written notice of the intended withdrawal to the secretary and all other group members.
She/he may/will:
1. Sell her/his capital account to the group, or to any member(s) acceptable by a
two-thirds majority of the remaining members.
2. Assume all costs incurred due to liquidation of assets, plus be subject to the
following terms:
a. If withdrawal occurs within the first year the member will forfeit
30% of their total valued assets, after expenses paid out;
b. If withdrawal occurs within the second year the member will
forfeit 25% of their total valued assets, after expenses paid out;
c. If withdrawal occurs within the three year the member will forfeit
20% of their total valued assets, after expenses paid out;
d. If withdrawal occurs within the fourth year the member will
forfeit 10% of their total valued assets, after expenses paid out; and
e. If withdrawal occurs within the fifth year or more the member will
only be subject to the costs incurred due to liquidation of assets.

Any member withdrawing voluntarily will also need to hand over all the properties of the
group in his or her possession during the period of notice.
C. Automatic Withdrawal: Any member who falls into arrears with his/her annual
subscription for more than One (1) year shall automatically cease to be a member and
his /her name shall be struck off the register of the group members will have their account
liquidated as described above. Once this rule is invoked the decision will be final. The
terminated member will forfeit all rights to appeal the decision.

5.7 Removal of Membership:

1. The management committee shall have the power to suspend a member from his/her
membership on the grounds that the member’s conduct has adversely affected the
 reputation and dignity of the Group or that the member has contravened the provisions of
the constitution of the group.
2. A member who fails to attend ….. consecutive meetings without a valid excuse will be
removed from the membership.
3. The grievance against a suspended member shall be discussed at the next General
meeting of the group following the suspension and the meeting shall resolve by two
thirds (2/3) majority of the members present whether to expel the suspended member or
lift the suspension.
5. Any person expelled from the group membership is NOT entitled to any refund of the
moneys contributed by him/her to the group.
5.8. Non-Compete Agreement.
A member who retires, withdraws or is removed from the group membership shall not
directly or indirectly engage in a business which is or which would be competitive with
the existing or then anticipated business of the group for a period of xxxxxx years in any
part of this Country where the group is currently doing or planning to do business.

6. OFFICERS:
6.0 The office bearers of the Group shall be:
i. The Chairperson
ii. Secretary
iii. The treasurer

6.1 All office bearers shall be fully paid up members of the Group but who shall be entitled
to such allowances as provided by this constitution an approved by the management
committee.
6.2 All office bearers will serve in office for three (3) years after which another election will
be held in general meeting. The office bearers are eligible for re-election if the members
deem it feet for any of them to continue serving for another term.
6.3 Any office bearer who ceases to be a member of the Group shall automatically cease to
be an officer bearer thereof.
6.4 Office bearers may be removed from office as is laid down for expulsion of members in
rule 5.7 above and vacancies created shall be filled by persons elected in General meeting
resolving the expulsion. The management committee may co-opt on temporary basis any
member to fill such vacancy in event of such occurrence.
7. Election Procedures:
1. The minimum number of people that must stand for each position shall be two.
2. Elections shall be held at the Annual General Meeting
3. The minimum number of members who must be present to hold an election shall be two-
thirds (2/3) of the total membership.
4. The election procedure shall be conducted through a system that members feel convenient
such as acclamation, secret ballot etc.
5. To ensure free and fair elections, an observer who is not a member of the group can be
requested to observe the elections. This individual must be of high integrity and a
respected member of the society.

8.5 DUTIES OF OFFICE BEARERS

8.5.1 Chairperson:
I) The Chairperson shall unless prevented by illness or other sufficient cause, preside
over all meetings of the committee and at all General meetings
II) The Chairperson, or in his absence, the Vice-Chairperson shall preside at every
General Meeting. In their absence, any member elected by majority of those present shall
preside
III. Shall have the casting vote.
8.5.3 Secretary:
I) The Secretary shall deal with all the correspondence of the Group under the general
supervision of the committee. In case of urgent matters where the committee cannot be
consulted, he shall consult the chairperson or if he is not available the vice-chairperson.
The decision reached shall be subject to ratification or otherwise at the next committee
meeting.
II) He/she shall issue notices convening all meetings of the committee and all General
meetings of the Group and shall be responsible for keeping minutes of all such meetings
and for the preservations of all records of proceedings of the Group and the Committee.
8.5.5 Treasurer:
I) The Treasurer shall receive and disburse, under the direction of the committee, all
monies belonging to the Group and shall issue receipt for all moneys received by him or
her and preserve vouchers for all moneys paid out.
 II) The Treasurer is responsible to the committee and the members that proper books of
account of all moneys received and paid by the Group are written up, preserved and
available for inspection.
III) The treasure shall ensure that all payment and expenditures are duly authorized.
IV) The treasurer shall ensure compliance with all directives of the management
committee.
9. THE MANAGEMENT COMMITTEE
9.0 The Management Committee shall comprise of all the office bearers of the Group and
Four other members of who shall be elected at the Annual General Meeting each year.
The Committee shall hold office until the following AGM. The Committee shall meet at
such times and places as it shall resolve but shall meet not less than twice in a year.
9.1 Any vacancies for members of the Committee, caused by death or resignation, shall be
filled by a member appointed by the remaining Committee members, and shall hold
office until the next AGM of the Group.
10. DUTIES OF THE COMMITTEE
10.0 The Committee shall be responsible for the Management of the Group. The Committee
shall have power to appoint such sub-committees, as it shall deem desirable to make
reports to the Committee upon which such action shall be taken as seems to the
committee desirable.
10.1 All moneys disbursed on behalf of the Group shall be authorized by the committee
except as specified in rule …….. .
10.2 The quorum for meetings of the management committee shall not be less than two thirds
(2/3) of its members.
11. GENERAL MEETING
11.0 There shall be two classes of General Meetings; Annual General Meetings (AGMs)
and Special General Meetings (SGMs).
11.1 The Annual general meetings shall be held not later than 31st Day of March of every
year. Notice in writing of such Annual general meetings, accompanied by the annual
statement of account and the agenda for the meeting shall be sent to all members not less
than 21 days before the date of the meeting.
11.2 The agenda for any annual general meeting shall consist of the following:
I) Confirmations of the minutes of the previous meetings
II) Consideration of accounts.
III) Election of the office bearers and committee members.
 IV) Appointment of auditors
V) Such other matters as the committee may decide or as to which a member or
members shall have given notice in writing to the secretary at least four (4) weeks
before the date of the meeting.
VI) Any other business with the approval of the chairman
11.3 The committee may call for Special general meeting for any specific purpose. Notice in
writing of such meetings shall be sent to members Seven (7) days before the date thereof.
11.4 Special general meetings may also be requisitioned for a specific purpose by order in
writing to the secretary of not less than half of the members and such meetings shall be
held within twenty one (21) days of the date of the requisition. No matters shall be
discussed other than that stated in the requisition.
11.5 Quorum for general meetings shall be not less than two-thirds (2/3) of the registered
members of the Group.
12. PROCEDURE AT MEETINGS
12.0 At all meetings of the Group the chairperson or in his/her absence, a member selected by
the meeting shall assume the role of the chair for the meeting.
12.1 The chairperson may at his/her discretion limit the number of persons permitted to speak
in favour of or against any motion or agenda.
12.2 Resolution shall be decided by simple voting. In the case of equality of votes, the
chairperson shall have a second or casting vote.

13. TRUSTEES
13.0 All land buildings and other immovable properties and all investments and securities,
which shall be acquired by the Group, shall be vested in the names of not less than three
(3) trustees who shall be members of the Group and shall be appointed at an AGM for a
period of 3 years.
13.1 On retirement such trustees shall be eligible for re-election. A general meeting shall have
the power to remove any of the trustee and all vacancies occurring by removal,
resignation or death, shall be filled at the time or next General meeting.
13.2 The trustees shall pay all income received from properties vested in the trustees to the
treasurer. Any expenditure in respect of such property, which in the opinion of the
trustees is necessary or desirable, shall be reported by the trustee to the committee, which
shall authorize expenditure of such monies as it thinks fit.
14. Audit:
14.0 The group’s books of accounts will be open for self-audit by group members and external
audits by any other relevant government authority.
14.1 An auditor(s) shall be appointed for the following financial year at the Annual General
meeting from among the members of the group. All Group members, records and
documents shall be open to the inspection of the auditor at any time. The treasurer shall
produce an account of his/her receipts and payments and a statement of assets and
liabilities made up to a date which shall not be less than four(4) weeks and not more than
eight (8) weeks before the AGM. The auditor shall examine such annual accounts and
statements and either certify they are correct, duly vouched and in accordance with the
law or report to the group in what resect they are found to be incorrect, unvouched and
or in accordance with the law.
14.2 A copy of Auditor’s report on the account 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. An Auditor may be paid such honorarium for his
duties as may be resolved by the Annual General Meeting appointing him or her.
14.3 No Auditor shall be an office bearer or member of the Committee of the Group.

15. Bank Account Signatories:

1. Chairperson
2. Secretary
3. Treasurer
4. Any other member of the group as may be decided upon from time to time.
16. Group Funds:
16.0 The group funds shall be derived from the following sources:
a. Member registration fee and subscriptions;
b. Member contributions;
c. Fines or penalties;
d. All monies accrued by virtue of any business of the group;
e. Investments;
f. Interests from Bank;
g. Donations/Grants;
h. Fundraisings;
i. Support from Group’s friends and well-wishers; and
j. Any other legal sources approved by members;
16.1. Use of Group Funds:
The funds of the Group may only be used for the following purposes:
 I) Assist any member of the Group in financial need
II) For such investments or ventures as approved by the Management committee.
III) For any other purpose deemed beneficial to the members of the Group.
16.2 All monies shall be received by and paid to the treasurer and shall be deposited by him/
her in any bank/banks approved by the committee.
16.3 No payment shall be made out of the bank accounts without a resolution of the committee
authorizing such payments and the treasurer shall sign all cheques (or approve the payments
online) on such bank account and one other approved signatories who shall be the Secretary or
the Chairperson of the Group.
16.4 The financial year of the Group shall be 1st January to 31st December every year.
16.5. Debt:
At no time will the total debt of the group exceed an amount equal to five (5%) percent of the
monthly contributions of the partnership.
16.6 Sharing of Profits and losses: Net profits and losses of the group investment shall inure to,
and be borne by the members in proposition to their credit balances in their capital account.
17: Discipline:
Any member who misses a group meeting without prior excuse shall be fined an amount of
KShs….
Any member who is late to the meeting with no prior notice will be fined Kshs…….
No member of the group is allowed to borrow money without the knowledge of all group
members.
18. Dissolution:
18.1 TUKIPKA ASCA shall not be dissolved except by resolution passed at a General meeting
of the members by a vote of two-thirds (2/3) of the members present. If no quorum is obtained,
the proposal to dissolve the group shall be submitted to a further General meeting, which shall be
held within one (1) calendar month. Notice of this meeting shall be given to all members of the
group at least fourteen (14) days before the date of such meeting. The quorum f the second
meeting shall be of the members present.
18.2 Provided, however that no dissolution shall be effected without the prior consent in writing
of the officials in the relevant Government department/registrar obtained upon the application to
him/her made in writing by the office bearers.
18.3 Once the Government Department/registrar approves the dissolution of the group, no further
action shall be taken by the Management committee or any other officer of the group in
connection with the objectives of the group rather than to liquidate all the assets of the group.
Subject to payment of all the debts of the group, the balance thereof shall be distributed in such
other manner as may be resolved by meeting at which the resolution is passed.
19. Forbidden Acts: No member shall:
A. Have the right or authority to bind or obligate the group to any extent whatsoever
with regard to any matter outside the scope of the group business.
B. Assign, transfer, pledge, mortgage or sell all or part of her/his interest in the group
to any other partner, except as agreed upon by the group.
C. Purchase an investment for the group where less than the full purchase price is
paid for same.
D. Use the group name, credit or property for other than group’s purposes.
E. Do any act detrimental to the best interest of the group or which would make it
impossible to carry on the business or affairs of the group.

20. Dispute Resolution: Mediation?

This Group shall be governed by the laws of the Republic of Kenya. Any disputes arising
between the members as a result of this Constitution shall be settled by mediation and/or
arbitration in accordance with the rules of the International Rule of Alternative Arbitration
Association and judgment upon the award rendered may be entered in any court having
jurisdiction thereof.
20. Amendment to the Constitution:
This Constitution shall be the Supreme governance document of Tukipka ASCA and any other
law, rule, or regulation inconsistent with it shall be null and void to the extent of inconsistency
subject to the provisions of the Government Act of Kenya.
Any amendment to this constitution of the group must be approved by at least two-thirds (2/3)
majority of members at a General Meeting of the group and implemented immediately thereafter,
provided that the amendment does not contravene Government regulations.

21. Binding Effect:

This constitution shall be binding upon and inure to the benefits of the members, their heirs,
successors and assigns.

ACKNOWLEDGEMENT OF THE CONSTITUTION BY MEMBERS

 Every member should acknowledge this constitution by signing below
Name ID Number Phone Signature Date
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