Every week a major newspaper in Kenya writes about a Chamaa that is doing very well. A Chamaa in Kenya is that group of people who pool resources together usually once a month and use the resources to uplift one of the members. This cycle is repeated until all the members benefit from the pooled resources in that Chamaa. In Kenya, a lot of Chamaas start small. How is a Chamaa made in Kenya? A group in Kenya could be of friends who have come together and decided to contribute a certain amount of money each month. This money is usually used to purchase certain items or pay bills. Women in Kenya are especially adept when it comes to starting and joining Chamaas.
However, without carefully planning, a Chamaa in Kenya tends to act just like a low savings account. A low savings account in Kenya is one you put money in it and at the end of the stated period, the money you get from it is just a total of your monthly savings. But there is a way that many Kenyans are making Chamaas work to their benefit. How can you make a Chamaa work in a beneficial way in Kenya? Here is a way;
What is the goal of a chamaa in Kenya?
Discovering your goal is the first step you should undertake before deciding to join a Chamaa or forming a chamaa in the first place in Kenya. What is your goal? Why do you want to join a Chamaa? Is it because you need extra money or is it because you want to be part of a group? Are you focused on investments in Kenya or are you satisfied with savings? The answers you give to these questions will enable you to decide the type of Chamaa you should join or form in Kenya.
Like-minded people in Chamaas in Kenya
Before you start a Chamaa in Kenya, you should endeavor to do so with people who share the same goals as you do. Of course, they should also be people in Kenya who can afford the money for the monthly contributions and those who will be willing to increase the amount of the contributions after a given time.
Grow your savings in a Chamaa in Kenya
It makes little sense to keep contributing the same amount of money each month only to receive an accumulated amount after several months. For example, a group of five people in Kenya contributing Kshs1000 each will mean that an individual will receive KShs5,000 when her turn comes. This means that if the individual put Kshs1,000 in a box, at the end of five months she will still have the same Kshs 5,000, thus, eliminating the need of a Chamaa in Kenya.
But in a Kenyan Chamaa where members contribute Kshs1,000 but an individual is given only Ksha2,500 and the rest of the money is saved in an account will be in a better position to loan out the money to members in case of an emergency. Banks in Kenya allow groups to open group accounts. You can use the loan money to buy a piece of land in Kenya or put yourself through a course to boost your education in Kenya.
Use the Chamaa to invest in Kenya
A Chamaa in Kenya can serve a higher purpose as an investment group. This is where the group members contribute to start a business or invest in a project in Kenya. This does not have to be done as a group only but can also be done individually. You can decide to contribute money without using the money for a period of one year. After the period has elapsed, you can come up with a formula of giving the members a startup loan for their individual businesses. This loan will of course be repaid with profit.
Tip to remember about a Chamaa in Kenya
You should never save more than you are willing to lose. If you put all your life spending in a Chamaa in Kenya, and something goes wrong or a member defaults on payment, then you will end up being crushed. If you use your Chamaa as a financial vehicle, then all rules pertaining to financial transactions in Kenya should be applied. Yes, a Chamaa in Kenya is a great way to bring about self-improvement and achieve financial goals.