Raymond Kageni had always assumed that chamas were women’s affairs and had never imagined joining one. However, his elder brother, John, enrolled him in a group that he chaired.
Mr Kageni’s reluctance stemmed from what he had observed growing up – that chamas were for women and that money was a private matter not suited to group intervention. That was 10 years ago.
Today, he is an active member of a men’s chama dominated by taxi drivers who are not affiliated with cab-hailing apps. He credits the group with helping him develop a strong savings culture.
Mr Kageni is one of a growing number of professional Kenyan men joining chamas to build savings and expand their social networks.
While formal financial instruments can help individuals save regularly, they lack the group accountability that chamas foster.
‘For me, it is the discipline of saving. I use it to save for school fees in Terms One and Two. It’s not so much about the investment return,’ he said.
In his chama, each of the 75 members commits to saving a minimum of Sh2,000 every week for the year. Contributions must be sent by 3 pm every Friday, and a daily penalty of Sh200 is imposed for delays until a member catches up.
Members can apply to adjust their weekly pledge during the year. However, reducing the amount incurs a weekly fine of Sh2,000, while any increase must be backdated to the start of the year.
Every Friday at 3 pm, a rota detailing contributions made and penalties charged is shared on the group’s WhatsApp platform.
‘We have a wide array of members, with some contributing the minimum and others contributing as much as Sh30,000 per week,’ said Raymond.
Discipline edge
Members attribute the strong savings culture in chamas to group accountability, which is often lacking in formal financial institutions, where one can opt out without pressure.
‘Without commitment, a savings culture is very difficult to establish. We have a whip whose role is to encourage us to save,’ said Anthony Wanjama, a lawyer who has been a member of a men’s chama for six years.
He admits that their contribution structure is aggressive and often leads to many members dropping out during the year. The group starts with contributions of Sh5,000 in the first week, increasing by Sh500 each week, accumulating to a total of Sh950,000 annually.
Most men’s chamas prefer to keep their funds in liquid assets, distributing savings at the end of the year to mark the start of a new cycle.
Traditionally, chama proceeds were shared through merry-go-round systems or invested in fixed assets such as land. However, many men’s groups are now opting for money market funds.
‘Fixed assets tie you down, especially in the case of a member defaulting. How do you remove them or refund their investment? It becomes a headache,’ said Mr Wanjama. ‘With cash, it is easier to divide the money based on individual contributions.’
Ownership of physical assets can also present legal and administrative challenges. Many women’s chamas are registered as self-help groups, which are not permitted to own property. As a result, assets are often registered in the names of officials, which can create complications, especially in the event of death.
Mr Wanjama notes that registering as an investment company can also be problematic, particularly when removing an unwilling director.
‘It has become an unwritten policy at the registry that a resigning director must submit a letter or confirm their resignation over the phone. So you can imagine the barriers if someone refuses to leave,’ he said.
Consequently, many groups are turning to money market funds offered by insurance firms, which allow for group investment while recognising individual contributions.
Hybrid models
Samuel Kuria’s chama contributes Sh12,500 weekly, and the group has chosen to invest in a Sacco regulated by Sasra. The Sacco offers a dividend of 20 percent on share capital, making it attractive and providing liquidity in case the chama exits.
Of the Sh12,500 contributed by each member, Sh5,000 is distributed in a merry-go-round format, while Sh7,500 is invested. These distributions begin after three months.
Unlike traditional women’s chamas, which emphasise regular physical meetings, men’s chamas rarely meet, making their relationships more transactional and their social obligations more structured.
Mr Kageni’s group, for example, meets once a year on Jamhuri Day to share a meal and distribute cheques.
‘The contributions are also a way of checking in on members. If someone misses a payment, we follow up,’ he said. The group was initially formed by airport taxi drivers to keep track of one another while working long, irregular hours.
Chamas also set aside funds for social support, particularly in cases of bereavement involving immediate family members.
However, male chamas tend to be cautious about internal lending, which is often cited as a source of conflict when members default. Groups that allow borrowing typically cap loans at a member’s contribution to limit exposure.
Mr Kageni said their group opens borrowing after the third month at an interest rate of 20 percent.
‘If a member borrows more than their contribution, they are charged an additional five percent,’ he said.
Despite their differing structures and bylaws, men’s chamas are steadily gaining traction, particularly among professionals seeking disciplined savings mechanisms in a tough economic climate.