How table banking works: a practical guide for Kenyan groups

The basic idea

Members bring their agreed contribution to a meeting and the money is pooled on the table. Members who need a loan borrow from the pool, repay with interest, and the interest grows the group fund.

A typical meeting

The treasurer collects contributions and repayments, the group approves new loan requests, and the secretary records everything. Some groups also run bidding, where members offer a rate or premium for access to a limited pool, and rotation, where members take turns receiving a lump sum.

Interest, fines and rules

Each group sets its own interest rate, loan limits, repayment period and fines for lateness or absence. Write these rules down and apply them the same way to everyone, including officials.

What to record

Keep a record of every contribution, loan, guarantor, repayment, interest charge, fine and payout, with the date and the member name. Give each member a receipt and a regular statement.

Software helps because it does the arithmetic, keeps one shared ledger and lets members see their own position without asking the treasurer. That removes most disputes before they start.