By the Jalika team
The most important promise a welfare makes is that when a member suffers a loss, the support will come. Setting benefits too high empties the fund; setting them too low disappoints members when it matters most. This guide explains the common models and how to size them.
Three ways welfares pay for bereavement
1. From the fund. Members contribute every month and benefits are paid from the accumulated fund. Payment is fast because the money is already there, but the fund must be large enough to cover a bad year.
2. By levy. When a loss happens, every member pays a one-off levy (sometimes called a call-out or harambee) and the total goes to the bereaved member. Nothing needs to be saved in advance, but payment depends on how quickly members respond.
3. Fund plus levy. The welfare pays a fixed benefit from the fund immediately, and a levy tops it up or replenishes the fund. Many established welfares use this model because it is both fast and sustainable.
Setting the benefit per relative
Most welfares pay different amounts depending on who died. A common pattern is:
| Who died | Typical share of the full benefit |
|---|---|
| The member | 100% (paid to the next of kin) |
| Spouse | 80–100% |
| Child | 50–70% |
| Parent or parent-in-law | 50–70% |
Whatever you decide, write it into the constitution and apply it the same way every time.
Sizing a levy: a worked example
Suppose the welfare wants to pay KES 50,000 for the death of a parent, plus about KES 2,000 for transport and administration. It has 250 members, and experience shows that about 85% pay a levy on time.
- Amount needed: 50,000 + 2,000 = KES 52,000
- Members expected to pay: 250 × 85% = about 213
- Levy per member: 52,000 ÷ 213 = KES 244, rounded up to KES 250
Planning for less than 100% payment is the step most groups forget. Our death levy calculator does this sum for you.
Sizing the fund
If benefits are paid from the fund, estimate how many claims a year to expect. Look at the past two or three years of your own welfare, or if you are new, ask a similar welfare. Then make sure the fund can cover:
- The expected claims for a year, plus
- A reserve for a bad year, often the value of three to six extra claims
If the monthly contribution cannot build that over time, either raise the contribution, lower the benefits or move to a fund-plus-levy model.
Rules that protect the fund
- A waiting period of three to six months for new members and newly added dependants stops people joining only when a relative is already ill.
- A cap on dependants (for example, four parents and parents-in-law in total) keeps claims predictable.
- Arrears rules: decide whether a member who is behind is ineligible, or whether arrears are deducted from the benefit. See welfare rules for members in arrears.
- Proof of death: a burial permit or death certificate, attached to the claim.
- Two-person approval so no single official can approve and pay out.
Communicating a levy
When a loss happens, members need three facts quickly: who died, how much to pay and by when. A short SMS works best:
Pole sana. We have lost the mother of Peter Otieno. Levy KES 250 by Friday 14th. Paybill 522533, account: your member number.
Then share progress, how much has come in and who is still to pay, and thank members when the levy closes. Jalika’s bereavement module sends this message to every member and tracks payments as they arrive.
Review every year
At each AGM, compare what was collected with what was paid. If the fund is shrinking, adjust before it becomes a crisis.
Put these rules into practice
Jalika keeps your register, contributions, levies and claims in one place, and applies your constitution's rules automatically.