Are you a member of any Chama in your area? Chama also know as Merry-go-round is an informal banking circle where members jointly contribute towards a single project.

The introduction of the law capping interest rates was supposed to increase access to credit but has instead made it harder for the common mwananchi to borrow money. This has made many turn to Chama’s and Sacco’s for their financial needs.

A chama is an informal investment club where members contribute an agreed amount of money with the aim of helping each other grow economically and possibly achieve financial independence.

Most chamas initially start as merry-go-rounds where members contribute household goods such as food stuffs, clothing and utensils but with time, transform into investment groups. Chamas can be used to support sustainable development even in the most remote areas in Kenya.

If you are considering joining a chama, here are the benefits you stand to gain:

1. Savings

Chamas encourage one to be a disciplined saver and provide for a hassle free saving where you can easily ease your way into investing.

2. Increased Investment Knowledge

Chama members share their personal experiences on investments and help each other find ways to make their businesses better. This provides an excellent learning experience. Chama’s also invite investment experts to speak to their members and this in turn improves their financial skills.

3. Shared responsibility

Members share risks that may arise and this makes it easier to manage as it is done in a group and not individuals.

4. Flexible Loans to members

Chamas have friendly loaning policies, minimal interest rates and are accommodative in their debt collection. Banks have been known to be very punitive when it comes to recovering money from defaulters.

5. Members have a shared goal and vision.

The group motivation increases members’ confidence and they support each other to achieve their investment goals.

6. Friendship bonds

Many chamas are formed by mutual friends and as they share and engage in their activities, their friendship ties grow stronger. This improves how well the members relate with each other.

Username Investment Ltd prides itself in allowing Chama’s invest in real estate, this involves giving offers such that when you purchase 10 plots as a group you get one plot for free.

If you haven’t joined a chama yet, perhaps this is the right time to consider joining. It will not only ease your financial burdens but also work towards making your investment dreams come true.

You can check out this blog on steps that you can follow when coming up with one of the chama.