Chama’s, Kenyan informal term referring to investment groups, have been there since time immemorial and are a household name. Almost every Kenyan belongs to some Chama with being members to more than two.
Chama’s started long before banks were introduced to enable saving and financial freedom.
While a number of them fizzle out before any significant growth, a notable number of them grow and become powerful financial institutions with influence in the industry.
Financial institutions at the helm could be of great help to the Chama’s growth. Most chamas begin without a clear path; here are ways Chama’s could grow with help from financial institutions.
A Financial institution provides a Chama with a bank account to secure the group’s finances and provide accountability. Most Chamas rely on merry go round form of saving where members contribute and give the contribution to a member a time mostly due to lack of safekeeping. Merry go rounds make it impossible for members to invest their money substantially.
Financial Institutions could help your Chama save. A bank account enables your Chama to save without fear. Saving with a financial institution ensures record keeping which is important for accountability among the Chama members.
Chamas that save with financial institutions stands a chance to secure loans to boost their contributions and enable them to secure their investments. The more the contributions, the better the loan limits.
Financial advice upon request is readily availed to chama’s with bank accounts. This exposes them to knowledge on how to maximize their contribution and interest while avoiding hefty transaction costs.
Chamas come up with a common goal of securing each member’s financial freedom and the right investment avenues are critical to avoid losing the contribution through fraudulent means. Financial institutions provide investment advice on whereas a chama you can put your money and maximize your returns.
Financial institutions provide checkbooks to the chama which enables accountability of the officials as signatories have to sign for each cheque.
As a member of a chama holding an account with a financial institution, you could secure a loan given you meet or other requirements set out by the institution.
Securing your financial freedom starts with a commitment to your chama, then visit that financial institution to secure your returns.
If you are a chama and looking for a financial partner, I would recommend that you visit Rafiki Microfinance Bank. They have the best products for chamas in Kenya including loans.