Kenya: ‘Chamas’ Find Their Way Into the Office

Mwangi Muiruri

15 June 2011

Nairobi — Merry-go-round, a savings method that is popular among women groups outside the formal bracket, has found its way into the offices of salaried staff from large companies.

Both men and women are now engaging in merry-go-rounds in a bid to improve their finances.

More and more employers are now coming out to mobilise their staff in joint ventures for self-development.Some companies encourage merry-go-round projects at the work place, where employees sharing the same investment aspirations can pool resources and grow together.

Mr Chris Macoloo of World Neighbours Saving Scheme says such arrangements can unlock enormous potential within a group of like-minded employees.

“An organisation that seeks to organise its workers into merry-go-rounds with a view to ensuring common growth is aware that this is one of the best in-house welfare schemes,” he says.

He suggests that human resource departments set aside a budget for financial experts and personal finance advisers to teach their staff about various ways of partnering for purposes of investment.

“The idea is to encourage the culture of saving as a prerequisite to building a strong foundation for mobilising local financial assets within the workforce. It is tough going it alone, but a group of committed and focused colleagues can be the key to a fortune,” he says.

But he cautions that those who want to join such schemes should be willing to rise above petty mistrusts and a pessimistic mind-set.

“There are those who cannot trust their savings to a group. Such people can cause complications. But with watertight structures where every member would feel secure, the benefits can be enormous,” he says.

According to Mr Julius Mwaniki, a product development officer at the Kenya Commercial Bank, joint ventures are a key component of asset accumulation.

“Many have started small- and large-scale businesses, expanded existing ones, raised family education and hospital funds, and even acquired fixed assets,” he says.

A case in point to demonstrate the benefits of group resource mobilisation is manifested in a group of internally displaced persons (IDPS) in Naivasha.

In July last year, 810 IDPs pooled the Sh10,000 stipend they received from the government and purchased a 10.5 acre piece of prime land at a cost of Sh8 million.

Brought together by common experiences and needs, they set up and registered a cooperative society — Jikaze Self-Help Group.

Ms Christine Ndinda, one of the group’s board members says: “Sh10,000 in an individual’s pocket cannot start a serious venture. But when we pooled the amount from 810 pockets, we had Sh8.1 million. This amount will give us a small plot each.”

The land can be subdivided into plots for the members, be transformed into an agri-business venture, and at the same time can be used as collateral to access credit for an expanded investment venture.

“If IDPs can show the way out of individual misery, what is the potential of a group of intelligent adults with a regular income?” she asks.

Mr Ambroce Wafula, a real estate consultant with Smart Win Enterprises, says the culture of partnership is taking root among professionals.

“Gone are the days when merry-go-rounds were associated with village women,” he says. He adds that most of his clients are registered partnership groups.

“Some of the areas the members invest in is land. They purchase land in areas where urbanisation is taking shape and within a short period, the land value appreciates and is sold off. The profit is shared among them and is in most cases super dividends,” he says.

Mr Wafula adds that if embraced by income earners, it is a model that can deal poverty a major blow.

He explains that the formula is simple because it shortens the period between saving and attaining a development goal.

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