For chamas
What your chama is agreeing to
A chairperson is deciding on behalf of every member. This page explains what the chama pledges, what happens when a member is late, who bears a loss and how you leave, so you can take it to a meeting.
Cover ratio and headroom
Your chama pledges a balance. Every loan a member takes reserves a share of that pledge, called cover, at the product's cover ratio. Headroom is what is left of the pledge after all active reservations, and no loan is approved that would exceed it.
Worked example
- Pledged balance
- KES 600,000
- Cover ratio
- 50%
- Cover reserved for one KES 50,000 loan
- KES 25,000
- Headroom after that loan
- KES 575,000
- Maximum total lending the pledge can back
- KES 1,200,000
Cover is checked twice: softly when the member applies, and hard when SonkoLend approves. A loan that no longer fits is declined, not squeezed in. When a loan is repaid its cover is released immediately.
The pledge and the cover ratio are changed only with two officers signing, never by SonkoLend alone.
Two ways to pledge
Soft hold
The money stays in your existing M-Pesa or bank account. You sign a standing instruction at onboarding that allows a drawdown only under the recovery process below.
Escrow
The pledge is deposited into a SonkoLend-held escrow account in your chama's name. It earns nothing and is returned when you leave, less any drawdowns.
The model is chosen at onboarding and can be switched later by our team, from a flat balance, at the officers' request.
What the chairperson controls
SonkoLend never disburses to a member without the chairperson's approval, and the chairperson can see everything the decision needs.
- Which members are on the platform, and who is suspended.
- Every loan request: approve or decline, with the member's history in front of you.
- The pledged balance and the cover ratio, changed only with a second officer.
- Written notice of any drawdown on your cover, with the loan, the amount and the date, after two SonkoLend officers have approved it.
The recovery process, step by step
Every loan follows the same ladder, measured in days past due (DPD). Nothing is skipped and the chama is told at every stage from day 8.
- Day 1–7 SMS reminders to the member on days 1, 3 and 7. No charge.
- Day 8–14 The daily late fee starts. The chairperson is informed by SMS and the loan shows as late on the officer dashboard.
- Day 15–29 SonkoLend's team contacts the member and can propose a restructure. A restructure the member accepts stops the ladder.
- Day 30–59 A written 30-day CRB pre-listing notice is sent to the member. Listing happens only if they are still more than 30 days late when it expires.
- Day 60+ A cover drawdown is requested. Two SonkoLend officers must approve it, the chama is notified in writing, and the amount is capped at the cover reserved for that loan.
Who bears the loss
If cover is drawn, the chama's pledge pays what the member owes, up to the cover that was reserved for that loan. The member then owes the chama, not SonkoLend, and the loan is closed. Anything above the reserved cover is SonkoLend's loss, not the chama's.
A drawdown cannot be reversed on the M-Pesa side; if one is made in error, SonkoLend refunds the chama.
What SonkoLend never does
- Contact a member's phone contacts, family or employer about a debt.
- Draw on cover before day 60, or without two officers approving and the chama being told.
- Report a member to a CRB under 30 days late, or without 30 days written notice.
- Change your pledge or cover ratio without two of your officers signing.
Leaving SonkoLend
A chama can stop new lending at any time; existing loans run to the end of their terms. Once every loan is closed, the pledge is released in full: a soft hold simply ends, and an escrow balance is returned to the chama's account.
A member can be removed by the officers; a member with an active loan keeps that loan's terms until it is repaid.
Registering takes about 30 minutes
- An officer completes the online registration: the chama's details, its officers and its bank or M-Pesa account.
- Our team reviews the documents and contacts the officers.
- The officers set the pledge and choose soft hold or escrow, with two signatures.
- The secretary invites members by SMS; each member completes a short identity check.