Chamas With Wealth and Influence

8/10/2019 Chamas With Wealth and Influence

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Chamas with wealth and influence

Chamas, Kenyan colloquialism for investment groups, have been, for the longest time, a surepath

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Members of Mapato Group. PHT ! C"#T$%&

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Chamas, Kenyan colloquialism for investment groups, have been, for the longest time, a sure

path to financial freeom. -hile a goo many of them file out before ma/ing any substantialgains, several others grow to become financial institutions of power, influence, an wealth.

Many of these investment groups are helme an populate mostly by men, an many women0s

chamas restrict themselves to merry1go1roun activities. However, more women0s groups arestarting to go big, pooling their money to reap substantial profit.

%aturay Magaine spo/e to three such women0s investment groups. These groups illustrate the

financial stries women can achieve an also celebrate their strength as women.

MILELE ALLIANCE

*f ever there was a poster chil for soun investment, Milele 'lliance woul be it. The eight1member investment company 2 starte with 34 members in +ovember 5446 2 has an

investment portfolio worth %h78 million. #ose Mbanya, a irector of Milele, share its history.

The 34 founers of the group came from iverse bac/grouns, on a who1/nows1who basis. *t

mattere not their age or professions. -hat mattere was their share goal9 To collect theirresources to achieve financial inepenence.

:or eight months, the group met every thir %aturay of the month, with the agena to align its

members0 synergies an to lay its founation. They contribute a minimum of %h74,444 every

month.

They also agree on ob;ectives, rules an a constitution, its ban/ing, accounting an auitingpartner, an its legal aviser. Members committe to the group0s manate by signing it.
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*n 'ugust 544< the group registere Milele 'lliance as a limite liability company. The money

collecte thus far became its share capital. *ts first investment was the purchase of two parcels of

lan 2 3.58 acres in =u;a an two acres in $lementaita.

Member contributions were sufficient to finance the investment. To ate, the lan has been hel

in its boo/s for speculative an collateral purposes.

+e>t, an in line with its five1year strategic plan, Milele focuse its resources on one income1

generating activity9 The purchase an letting of resiential property in Thi/a an Mlolongo. ?Thefinances came through member contributions an a mortgage from our ban/ing partner,@ says

#ose. %o far the mortgage has a small balance remaining.

The secon five1year plan starte in 'ugust 5437. *t has focuse on a car1cleaning service

locate in Mountain )iew. ' manager on site oversees its operations. Milele0s plan is to automatethe service. To sprea its ris/, Milele has also investe in the stoc/ mar/et.

%o what factors have contribute to Milele0s longevity an financial successA ?:irst, we engageprofessional services. 'ccountants an auitors maintain our boo/s. 'n before we ma/e any

investment, our lawyers conucts ue iligence. Professionals also give us an ob;ective opinionof the state of our affairs,@ says #ose. Milele has also employe a full1time investment manager

for its portfolio.

%econ, Milele0s rules are clear on how to hanle matters. ?The two members who e>ite the

group in 'ugust 5435 left without acrimony. 'ccurate recors allowe us to settle theirentitlement, plus e>tra.@ #ose illustrates. These Milele rules also e>plain why the group has

escape the pitfalls that many a women0s group fall into, li/e personal conflicts an whimsical

ecision1ma/ing.

Bastly, Milele oes not view itself as a chama. Milele views itself an investment company.Planning for the ne>t five1year investment cycle is unerway, a process the group ta/es seriously.

's women, how has Milele change the lives of its membersA ?The investment company has

taught us a lot about having a powerful vision an being confient to e>ecute it in a professionalmanner while wor/ing with an learning from the correct professionals.

?n a personal level, we have bone as investors an en;oye seeing our company grow from

strength to strength. More importantly, we have remaine friens an can still challenge each

other in the best interest of the company. Milele is something we are prou to have built,@ #ose

says.

MAPATO GROUP

Mapato Group is four years ol an has efie the challenges of its sie to ma/e substantial

financial stries. %o, where i this group of nowD 36 women beginA


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The iea for a chama was first conceive as a merry1go1roun for si> women in our social

circles, says =anetE, a boar member who ecline to have her ientity reveale. 'fter four

months, the women realise that the merry1go1roun was not wor/ing for them. They ecie torecruit friens 2 wor/ing women in their 74s F to ;oin as members. The iea was to pool their

resources an invest.

The group of 54 members, three of whom live in the iaspora, congregate for its first meeting in

March 5434 an registere with the Ministry of Gener, Chilren an %ocial %ervices as awomen0s group.

's it consiere its investment options, Mapato electe its office bearers, ocumente its

constitution, an starte ma/ing monthly contributions of %h8,444 later uppe to %h6,844D anan annual subscription of %h5,444.

*ts monthly meetings involve team1builing activities for members to bon an tal/s from

investment professionals an managers for inspiration an to eucate them on investments an

internal management structures.

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Mapato0s first investment was the money mar/et fun in =uly 5433. Bater that year, the group

purchase shares in the Kenya 'ssociation of *nvestment Groups, through its 'malgamate

Chama Bimite. *n +ovember 5435, the group purchase four acres of lan in Kaguno. *ts lastinvestment was the purchase of shares in %afaricom %acco, in =uly 5437.

The group0s total investment currently stans at %h million.

Mapato0s progress was steay until the challenges it is now battling put a pause to it.

-hat are some of these challengesA 'ccoring to =anet, its sie is a huge stumbling bloc/. ?-e

starte with 54 members. $arly on, the professionals we invite to spea/ warne us our numberwas unmanageable, that members woul fall off the wagon as we progresse. That happene.@

The group starte to shrin/ when some members faile to ma/e their monthly contributions on

time or to ma/e them at all. Having a constitution in place an a valuation of the shares wor/e

in the group0s favour as it was clear on how e>iting members woul transfer their shares. Threemembers e>ite the group without severing ties.

ther members faile to participate in group responsibilities li/e boo//eeping an aministrative

uties. =anet says such inactive members were electe into the positions to spur theirparticipation. %ometimes this spurring wor/e, other times it i not.

(ivergent views on how to finance its investments also challenge the group. Most of the

members vote against ban/ loans, others supporte sacco loans. Capital calls were mae to

boost the cash reserves. +ot all members welcome this ecision, however 2 some thought the


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calls too short a notice, others felt it too great a financial strain. &et some members gave way

above the set minimum.

(ue to these challenges, Mapato has been ormant since (ecember 5437. =anet says the groupwill meet en of March to eliberate on what to o ne>t. %he is hopeful that everything is not

lost. %he says, ?This is a fantastic group of women, focuse an committe to what they areoing.@

Given its success in the past three years, it is almost certain that the women of Mapato have it inthem to overcome these challenges an strive towars their goal of financial empowerment.

AWESOME

The group calls itself 'wesome. Misnomer or not, this investment group has change the lives of

its members in its three years of steay growth.

'wesome starte off as a group of friens from the "niversity of +airobi. ' year out of campus,in 544 months. The minimum lening amount is %h84,444. The cap is base on the

availability of funs.

To ate, the group has mae ;ust uner %h384,444 from interest on loans only.

Members share the chama0s roles9 The treasurer maintains its boo/s. ' secretary ocumentsmeeting minutes. %ince 'wesome0s constitution is not ocumente, these minutes are toole for

its ecision1ma/ing. The investment aviser, a research analyst by profession, steers its

investment ecisions.


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-hat oes it attribute its growing success toA ?:irst, it is the consistency in members ma/ing

their contributions,@ says Jianca yula, the treasurer. *niviually, %h5,444 now %h7,844D may

not seem much. Jut collectively, it is substantial for an investment.

'lso, the priority an iscipline of members ma/ing contributions an attening meetings.

Bast, it is how the chama has uplifte its members. Through its loan facilities, members have

finance their reams an personal pro;ects without see/ing costly ban/ loans. This has been the

greatest measure of success for the group so far.

Jeing an all1women group 2 an friens 2 one cannot help as/ing whether there have beenany personal conflicts that have arisen out of theseA ?&es, they have,@ says -an;i/u Muchiri, the

chairlay. ?Jut we have learnt to accept each other0s personalities. -e are friens first an we

want this chama to last a lifetime. -e nee each other for that.@

Plans for the futureA ?To register the group as a company an to grow our asset portfolio,@ says

=oy (0 %oua, the investments aviser. ?ur agena for this month0s meeting is to iscuss aninvestment in the stoc/ mar/et.@ Most importantly, to continue to invest in each other. +ot only

in financing its members0 ambitions, but also be there to hol each others0 hans through life.

Posted Satuda!" Mach #" $%&' ( )!* +LORENCE ,ETT ( -ail! Nation

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Chamas With Wealth and Influence