What are the well-known Kenyan Chamas?
Chamas are investment groups by women for women. A group of women come together to save and invest their own money without the financial help of any sort from men.
Chamas initially started by incorporating women alone; to take loans, save, invest, share and discuss matters of the community.
The financial success of Chamas and their members has influenced a lot in society. As we speak, men are now members of Chamas.
Saccos are being formally formed with the same concept of Chamas.
How have Chamas been useful to Kenyans over the years?
Read on to know how Chamas have impacted the lives of various Kenyans.
Merry-go-round returns
This is a system used by most Chamas. A standard amount of money is collected from members periodically.
When this amount reaches a standard goal, it is awarded to one of the members, and the cycle continues.
Purchase of property
Chamas have helped lots of people to build homes and businesses. I recall the days when my mother’s Chama always made a household purchase for the month’s beneficiary.
Items are purchased under the request of the beneficiary. The remaining funds are then given to you.
Apart from household items, you can take advantage of your Chama to increase your business supply and necessary materials.
Chamas have established people’s businesses by helping in acquiring property and raw materials.
The concept of community
There is a sense of belonging that participants of Chamas carry with them.
Much as they are financial goal-oriented, Chamas allow members to share personal issues amongst themselves.
As a matter of fact, a Chama is not just formed by anyone. There must be trustworthiness in the members called upon.
Therefore, from my experience, Chamas are created by friends, relatives and acquaintances who come together.
These are people who have known each other before and hence developed trust in each other over the years.
What drives these societal financial groups is a sense of community and friendship.
Soft loans to members
As long as you are a member, your Chama can always give you a loan.
Because the cash is ready, getting a loan from a Chama is more comfortable and faster. Loans are very seldom denied to members which can happen only when the account is running dry.
But again, this is a sporadic occurrence.
However, members of the Chama are by all means entitled to loans from their Chamas at any one time.
Chamas have rigorous conditions yet give loans to their members at subsidized rates.
On top of that, Chamas can also provide loans to outside members.
Investments
To invest, one is expectant of returns.
A good investment strategy will encourage members of a Chama to invest.
Aside from that, members of a Chama should have a smart methodology of achieving their investment goals.
According to Potentash, “It is estimated that there are about 500,000 Chamas in Kenya, managing about KHz. 400 billion in assets”. Potentash goes ahead to clarify that this is about 7% of the Country’s GDP.
Investing in a Chama is good for the individual and the country’s economy.
To me, the very charm of a Chama is to invest collectively with your friends and to have fun while you’re at it!
-Queenie Chow
Savings
If you are the kind to break their piggy bank before hitting the target, consider saving in a Chama.
Saving is one of the sole purposes of Chamas.
Chamas have promoted financial inclusion by encouraging banking of the unbanked. Instead of incurring the challenges of registering a savings account in your bank, save through a Chama.
You will get your returns assuredly as long as you are in a legit Chama. Members are also able to see the value of their money and make decisions together.
Extra income
Looking for a slightly passive way to earn that extra income?
Chamas are here for you. The returns women have met over the years have influenced men to start their Chamas. Still, think this is a hoax?
Find yourself a trustworthy financial group and join in to make extra bucks.
Some people use Chama earnings for specific purposes like school fees, business and construction to mention but a few.
Moral support
Most members of a Chama are related in some sort of way.
There is no way a Chama can be formed with total strangers meeting for the first time.
There is a need for trust and understanding between members willing to come together for a Chama.
Most Chamas might comprise of home neighbours, relatives, high school friends etc.
Commonly, members of a certain Chama know each other outside the Chama. Members have been able to support each other in welfare and other issues non-financial.
In Kenya, it is estimated that there are more than 300,000 Chamas controlling a total of KSh 300 billion (USD 3.0 billion) in assets.
Some even estimate that 1 in every 3 Kenyans is a Chama member. (From Medium.com).
Are you currently in a Chama at your locality? I am part of 3 different Chamas, and my financial life is on tremendous growth, thanks to the Chamas.
(6 votes, average: 3.50 out of 5)
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