Last week, I was at my friend’s place where he had invited his collage friends with the purpose of starting an investment club commonly referred to as Chama
The turnout was amazing. They unanimously supported the idea and even decided on monthly contributions.
Even so, they seemed undecided on who/how to collect funds from members.
Traditionally, most Chama members used give the treasurer position either to the most harmless member, preferably a lady or the richest person in the group. I stand corrected though
Members could manually take or send their contributions to the Treasurer via mobile money transfer, who later took all savings to
Although almost most banks in Kenya now have a Chama account where group members can save and trace their funds in real time, members seemed to vouch for their personal banks.
This prompted me to inquire about Safaricom’s M-Pesa Chama Account
This is a service offered to groups/chamas to help them to conveniently and securely collect funds up to Sh100 million.
Requirements for opening an M-Pesa Chama Account
Unlike group bank accounts which requires at least three signatories to open, this account can be opened by a single member either online or offline
For authenticity purposes, the member has to produce a copy of group/chama registration certificate, ID copies of three group officials and their KRA pins.
These documents must accompany a dully filled Chama Account form which can be obtained at any Safaricom shop or Care Centre countrywide
This form can also beobtained by simply sending the word ‘CHAMA’ to 21366 or email firstname.lastname@example.org
Upon submission of the application form and signed contract, the account is ready within 48 hours. The applicant is notified via telephone call
Funds transfer from this account to bank is seamless
The group can transfer funds from this account to its preferred bank account any day, any time. The whole process is seamless.
The group representative initiates the process by simply logging into a portal access or by sending an email to email@example.com. Funds can only be transferred to a bank account provided in the application form
When savings hit the Sh100 million limit, the group is notified and requested to transfer funds immediately.
Unlike other group accounts where only officials can obtain bank statements and other financial records, the M-Pesa Chama account allows all members to monitor the group’s financial records at the click of a button
The group representative simply need to register the rest of the members and provide them access to the group’s saving portal
The group is not charged to open or save on this platform. However, members are charged normal M-Pesa rates to deposit on the account
Other benefits include easy access to credit facilities offered by Safaricom in partnership with other banks like Commercial Bank of Africa (CBA) and Kenya Commercial Bank (KCB)