Here are things that can break your Chama unless you turn to Rafiki

By Juma Fred / May 22, 2018



Chamas

Kenya has over 300 thousand investment groups otherwise known as ‘chamas’ that have turned out to be reliable financial vehicles for millions of individuals across the country.

However, thousands of this Chamas are dying annually because of various challenges facing them. Most Chamas in Kenya that are not successful often fail within their first year of establishment with challenges cutting across being the same.

Here are some of the challenges facing Chamas in Kenya:

  • Differing investment ideas

Most people set up a Chama without a clear goal of what they need to invest in. Members end up bringing in too many ideas on the table to the point of creating confusion, marred with self-interests that end up breaking the group. Before pulling resources together, every member of the Chama should be aware of the common investment goal of the group. Simply, agree before forming the group.

  • No rules for the Cham

Chamas that lack rules are like sailors without a compass. Most Chamas have failed because they lack such simple rules as attendance requirements, contributions, and deadlines. For a Chama to succeed, every member needs to participate and for these to happen, the chama needs to have clear guidelines that will guide the members. The rules should be made clear and the penalties stated in case one breaks them.

  • Leadership problems

Thousands of chamas have failed due to failure in leadership of the group. In most cases, members of chamas end appointing to positions, people with little knowledge about chamas and investments. A good chama should have sound leadership that understands the goals of the chama, the needs of the members and the investment patterns at the time of forming the chama.

  • Mistrust

Trust is the only invisible currency that every business and investment thrives on. Trust is like a glass, once broken, it can never be repaired and if it will be repaired, cracks will still be seen. Most chamas fail because members lack trust among themselves and among the leaders of the group. The best way to win the trust of chama members is to include every member in every decision of the group.

  • Rushing into investment

Have you ever heard of the old saying, “Good things take time”? The same applied to chamas. With a chama, you should not rush into an investment because others are doing the same. You need to sit, think and make a wise decision and if possible seek advice from experts such as Rafiki Microfinance Bank.

Where can you get help?

If you are in a chama that is going through some challenges, then you surely need help before it is too late and there is no better help than that from Rafiki Microfinance Bank.

Rafiki Microfinance Bank has a Chama Account, specifically dedicated to chamas and one that comes with amazing benefits such as free chama training, free bookkeeping the software, no monthly charges, free bankers cheque, chequebook and competitive interest rates. Also, the group that is not registered as limited companies are assisted to do that as well as having access to affordable loans.



About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.You can reach him on: (020) 528 0222 or Email: [email protected]

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