How to make the best out of a merry-go-round Chama investment group

  • Chama is a Swahili term that means an investment party or group, that has male and female members.
  • The main objective of a Chama when it initially started was for members to meet, talk, eat and contribute a specific amount of money monthly. Each month a person would receive the money and use it for project or whatever investment they wanted to make. This goes on until all member in the group get money and the process starts all over again.
  • The merry-go-round Chama is not only a good saving vehicle but has now become a good borrowing and investment platform. Members borrow money at a small interest rate and the group also decides to invest in projects as a group. 

Whatever type of Chama you belong to, you should ensure it is worth your time and investment. As an investment group or an individual in an investment groups, here are ways to make it worth your while. One can make extra money from the Chama shares one gets. This will help you achieve financial independence status. So what ways can one have an investment from the chama?

Have a shared goal

As members of an investment group, do you have a shared goal of what you what to achieve? It is in human nature to compare and desire what your neighbour has. But is is only wise to learn from others. Milele Alliance is an investment group that through their shared goals, their investment worth now is at KSh 35 million. They started by purchasing two acres of land in Elementaita and Juja and now the pieces of land are being used for collateral.

Powerful vision

Do not have a vague vision that will end up being buried in a report book where nobody knows what really the vision means, what actions is implied and what they stand for. Having a powerful vision means that the vision should have all the 7Cs. A vision inspires action. A powerful vision pulls in ideas, people and other resources. It creates the energy and will to make change happen. It inspires individuals and organizations to commit, to persist and to give their best.

A vision is a practical guide for creating plans, setting goals and objectives, making decisions, and coordinating and evaluating the work on any project, large or small. A vision helps keep organizations and groups focused and together, especially with complex projects and in stressful times.

The 7 C's of a Powerful Vision


How are the activities in your investment group being handled? What do people say about the group? What is the communication chain of the group? Is the organogram clear, are members performing their designated roles? As much as you may develop friendly relationships from your investment groups, it is very important that activities within the Chama are handle professionally. The organisational structure should be respected and proper flow or chain of communication should be established at all times so as to avoid misinterpreted or misguided  information.

Investment goals

What big thing do you what to achieve? What legacy do you what to build? What will you do that will break records and make your group stand out from the rest of the Chamas? Investments must be chosen with a main goal in mind: safety, income or growth. The first thing you need to decide is which of those three characteristics is most important. Do you need current income, growth so the investments can provide income later, or is safety your top priority.

Investment whether for an individual or a chama is an art. Chamas are an investment. Success depends on the choices you make. Choose wisely and have a legacy for people to promote your business.

Photo by Voices of Africa

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