Don’t Let Your Chama Die When Malipo App Can Help You Manage

Kenya has thousands of investment groups otherwise known as ‘Chama (s)’ that have turned out to be reliable financial vehicles for millions of individuals across the country.

However, thousands of these 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:

• Diverging 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.

• Failure to Show Up

Chamas that lack rules are like sailors without a compass. Most 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 in alignment with the goals and objectives of the group.

• Leadership problems

Thousands of Chamas have failed due to failure in the leadership of the group. In most cases, members of the Chamas end appointing to positions, people with little knowledge about investment groups and their objectives.

A good investment group should have sound leadership that understands the sole purpose of its existence, the needs of the members, and the investment patterns at the time of its inception. 

• Mistrust

Trust is the only invisible currency that every business and investment thrives on. Trust is like 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 the 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 applies to your investment groups. 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 Malipo Circles.

Malipo Circles provides investment groups with a solid platform that negates all these challenges.  It provides you with Malipo App, a solution that also allows groups to come together and contribute towards a specific purpose. Some of the app’s functionalities are collections, disbursements, loans, record keeping, reports, marketplace, among others.

Malipo App is the right platform for Chamas as it negates distrust, ensures that members continue contributing even when they are absent, keeps track of all the transactions while ensuring utmost transparency.

Better yet, your Chama’s deposits/savings are held in a trust account that sits with a regulated bank. The money is only accessible by the Chama officials as set out in the app during the Chama setup.

All members have visibility of the money. The app allows you to set up your bank account for real-time withdrawal to your Chama bank account.

Learn more about the Malipo App here and all the benefits your Chama stands to enjoy.