Malipo, A New Revolution for Investments and Financial Inclusion

For more than 10 years, Kenya has been leading 20 other countries as the queen in financial inclusion, thanks to the evolution in technology and mobile money platforms.

Stats from the Central Bank of Kenya (CBK), indicate that Kenyans transacted 3.26 trillion shillings between January and June via mobile, one trillion more than what was transacted at the same time in 2020.

The growing use of mobile money and technology according to the CBK is a result of Kenyans being innovative and realizing the ease that comes with the use of technology, especially when dealing with finances.

The ever-growing embrace of technology by Kenyans has made the country envious of other African countries with various innovations coming up on each passing day. Platforms such as Malipo are playing a big role in enhancing investments and financial inclusion within and without the country in bringing together different groups.

Kenya has different investment groups. In Kenya, there are estimated to be 300,000 chamas managing a total of KSH 300 billion (US$3.4 billion) in assets. Investment groups or Chamas are formed with the main aim of pooling resources from members to attain a given goal such as an investment.

Chamas work differently, depending on the type, but at the end of the day, funds will be collected from every member after which they may be used for investments, saved or given to one member in merry go rounds kind of Chamas and channeled towards different purposes.

Talking of Malipo, who are they?

Call them Malipo Circles. Malipo is a Swahili word that means “payments.” Payments go hand in hand with “money”. The name Malipo, therefore, defines itself; money and transactions tailored towards groups and individuals.

In simple terms, MALIPO is a solution where groups come together and contribute towards a specific purpose. They say Umoja ni nguvu, utengano ni udhaifu (Together we stand, divided we fall.). It is on this premise that the majority of Kenyans are in one or more groups for specific purposes. We call them Chamas but some simply call them investment groups.

Malipo, therefore, brings together like-minded groups to pull together financial resources towards purposes such as:

• Lending or borrowing (this is common for Saccos or merry-go-rounds)
• Chamas/investment clubs or/stokvel
• Fundraising
• Payment to merchants

Malipo comes with what we call Circles, hence the name Malipo Circles. Circles are simply individuals or groups with different interests depending on what an individual wants. Some of the circles with Malipo include:

• Office parties
• Class projects
• Medical funds
• Charity events
• Group holidays
• Funeral funds
• Weddings
• Group savings among others.

They say technology is like a train that has long left the station. Those not on-board risk missing out completely. Keep it here for more on Malipo and what they have to offer.