Florence (not her real name) owns several rental properties in Nairobi. She never had a high flying job. Neither did her husband. In their younger years, her husband would walk to town from Eastleigh and back, but pay for Florence’s fare to work. They both worked in Nairobi’s CBD. They lived in a single room.
Florence’s husband would foot household bills, while she put much of her little salary into her chama- Tin to mit, an informal group of fifteen young women determined to lift each other economically. Over the years, they accumulated enough savings to buy a piece of land that they later sub-divided, and sold at a descent profit. Florence and her husband topped up their share of the profit and made a down payment for a town house. That was about 23 years ago. They had a common dream; to own a home and put an end to the landlord’s pestering and to enjoy the freedom of being in their own home, a place to raise their children. They now live in their own house.
With the burden of paying rent off their shoulders, Florence and husband were able to increase their contributions to the chama. With increased savings, Tin to mit took a loan and bought another piece of land, which was sub-divided among the members. Each member had the freedom to choose what to do with their parcel. Florence decided to put up residential apartments.
This year, Florence and her husband also built a school with the proceeds of their contributions to Tin to mit. Florence also owns a saloon business in the estate. They are both approaching retirement, while two of their children are in the university. Their life in retirement appears, by all standards, secure. They owe this to Florence’s chama.
Chamas (micro-savings groups) have over the years transformed the lives of many low income Kenyans. Initially, they were mainly women-only groups but they have gained unprecedented popularity in recent years. Men have embraced them too. Never ones to miss out on opportunities, financial institutions have instinctively smelt the coffee and developed strategies to tap in to over Ksh. 3 billion that these groups hold. Statistics show that one out of every three working Kenyan adults is a member of a chama. It is estimated that these groups hold over Kes 35 billion.
They say the lifting power of many birds flying together can achieve twice the distance of a single bird flying alone. You may not have the financial power to fire up your dreams. Your little monthly savings may take longer to get you started. But pooling together with others could be the surest route to your dreams.
Let’s say, for example, you and your chama group of ten open an ABC Bank Chama Current account, and you collectively put in Sh. 20,000 every month. By the end of the second year you’ll have accumulated a cool Sh. 480,000 plus interest. That’s not all. This chama account is a zero-charge multi currency current account, giving you and your group a choice to deposit in dollars, Pounds, Euros or Kenya shillings. That’s the taste of freedom!
To put the icing on the cake, your chama gets access to lending facilities of up to 90 percent of your contributions. Access to financing for various projects like land and real estate becomes easier with a Chama Current Account. You also benefit from investment advice from ABC Group Companies, and access to the latest offers on real estate from our partners.
Chamas have evolved from informal to formal entities. This makes legal advice, accounting and book keeping as well as financial guidance on various investment opportunities a necessity. Those opening a Chama Account at ABC Bank now also enjoy these benefits to make it easier for them manage their operations.
Visit any of our branches to open an ABC Bank Chama Current Account and bring your dreams to reality. talk2us@abcthebank.com or call 0701 700 700.