Chama
A Chama is an informal cooperative society that is normally used to share funds together and invest as one. Moreover, most of these Chamas are informal.
Chamas have the following characteristics;
- Informal cooperative society primarily for fund-sharing and collective investment.
- Predominantly informal in structure
- Members pool funds to foster economic growth and achieve financial independence.
- Support sustainable development, even in remote areas of Kenya.
- Share personal investment experiences to aid in business growth.
- Group members share risks collectively.
SACCO (Savings and Credit Co-Operative Society)
It’s a self-help organization where a group of people keep their savings and offer loans to their members. Additionally, the main intention behind setting up SACCOs was to eradicate poverty by rendering affordable financial services to its members. Consequently, they contribute to economic prosperity within the community.
SACCOs have the following characteristics;
- Regulated by the Sacco society regulatory authority.
- Financial institution maintained and administered by members.
- Provides services like savings and credit to members with common interests
- Members save and borrow at favorable rates.
- Managed by Aims to eradicate poverty by offering affordable financial services and promoting economic prosperity within communities.
- Elected members from the community.
- Utilizes modern technology to streamline operations, reduce costs, and provide better services.
- Digitization enables real-time transaction tracking and minimizes paperwork, leading to cost reduction.