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1. Chamas now offer loan facilities
One of the biggest shifts in the evolution of chamas is their ability to offer loans to members. Rather than simply collecting money and distributing it to one person each month, many chamas have adopted more structured financial models.
Members can now borrow money from the group's pooled funds at low interest rates. This development has been especially helpful for members who need quick access to cash but may not qualify for bank loans due to lack of collateral or credit history.
2. Chamas support emergencies and educational needs
Beyond loans, chamas have become a safety net during emergencies. Members contribute to a fund that can be used to cater for urgent needs such as hospital bills, funerals, or school fees.
In rural areas, especially, it’s common for chamas to have a kitty specifically for medical emergencies or bursaries for members’ children.
This shift has transformed chamas into not just savings groups, but support systems that help families remain stable in times of crisis.
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3. Investment in business ventures
Modern chamas are also tapping into the world of business. Many groups are now investing in income-generating ventures such as event planning (buying tents and chairs for hire), farming, dairy production, and real estate.
This shift from saving to investing has helped members grow wealth collectively, and in some cases, transform their livelihoods permanently.
4. From informal to legally recognised entities
Initially, chamas were informal and operated largely on trust. Today, many are registering as self-help groups, companies, or cooperatives, giving them legal recognition and access to government grants or partnership opportunities.
Registered chamas can now open bank accounts, enter into legal contracts, and apply for funding.
5. Embracing technology
Technology has played a big role in the modernisation of chamas. Mobile banking and digital savings platforms like M-Chama, M-Pesa, and banking apps now allow members to contribute, borrow, and track their savings remotely.
This has eliminated the need for physical meetings every month and brought convenience, especially for chamas with members in different locations.
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Moreover, digital record-keeping has improved accountability and transparency within the groups.
6. A growing focus on financial literacy
Today’s chamas are not just about pooling money—they are increasingly becoming platforms for financial education.
Workshops, webinars, and mentorship sessions are now common among progressive groups.
Organisations like Kenya Women Microfinance Bank (KWFT) and NGOs like Hand in Hand East Africa offer training sessions to chamas on budgeting, investing, and financial management.
This has empowered members with the knowledge to make smarter financial decisions both within and outside the group.
7. Diverse membership and inclusivity
Traditionally, chamas were mostly composed of women or close-knit friends. Today, the membership has diversified.
Men, youth, and even professionals in the corporate world are joining or forming their own chamas.
There are now specialised chamas such as investment clubs for young professionals, diaspora chamas.
This inclusivity has expanded the reach and potential of chamas in Kenya’s financial landscape.
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Conclusion
Chamas have come a long way from their humble beginnings. What started as a simple monthly gathering to share money and food has now become a structured and dynamic financial tool, impacting communities economically and socially.
With better organisation, technology, legal recognition, and financial literacy, chamas have evolved into more than just savings groups—they are now engines of entrepreneurship, support systems in times of crisis, and vehicles for collective prosperity.