Chama savings: making your group's money work harder
Chamas are one of Kenya's most powerful savings tools. A few simple practices can help your group grow its funds and avoid common disputes.
Whether your chama meets to merry-go-round, invest or support members in times of need, clear rules and good record keeping are what keep a group together for years.
Write down your rules
Agree on contributions, penalties for late payment, how loans to members work and what happens when someone leaves. A written constitution prevents misunderstandings later.
Bank as a group
Keeping group money in a registered group account, with more than one signatory, protects everyone. It also builds a savings record that can qualify the group for financing.
Invest with a plan
Once the group has a healthy balance, agree on an investment goal: land, rental property, a shared business or fixed savings. Take time to research, and avoid offers that promise returns that seem too good to be true.
Tai Sacco offers accounts and loans designed for chamas and investment groups. Visit any branch to find out more.
