Creating Kenya’s Community Financial Infrastructure
The future of the economy is financial inclusion since the formal financial system is stifling social growth; the more you have, the more you get. Rural areas and informal settlements in urban areas have embraced funds-pooling to mitigate economic harshness, which has greatly impacted lives. From education to agriculture, more families are using communal Chamas to grow their social status. The same can be seen among young people when angling towards a common goal. As the “Lipa Mdogo Mdogo” takes shape, the future is modelled around pooling resources together.
With the small resources you have, find a group that shares the same interests. Deposit the funds consistently and predictably over time to get a favourable credit score. These are the parameters used to gauge your readiness for financial inclusion.
As a start, lend amongst yourselves and repay with a small interest to grow the funds. As you invest more, the amount continues to grow through remittance and interest on loans. If this is done over time, the group equally grows its credit-worthiness.
With substantial resources, you can invest as a group in MMFs, Shares and Stocks. The aim is to get more from investments with compound interest over time; passive income. It might grow to reach a SACCO or microfinance status.
To follow through this process, you need knowledge and capacity. Financial education offers the guideline in ensuring every concept is followed to the latter. The Chama might go professional, but core members understand the ultimate goal.
Get members to join a chama and start contributing regularly over a period of time.
Ensure that everything is done by the book, following all legal and operational guidelines.
Use the proceeds to buy investments that earn dividends to get passive income on investments.
Growing capacity by getting professionals and infrastructure to manage the resources.
Our system runs on a strong Secure Socket Layer Technology making it safe and secure.
We are more than a SaaS Software; our platform guarantee socioeconomic growth.
All processes are easy to use and understand, with less non-technical terms.
Every transaction is carefully and neatly recorded to cover all paper trails; important in audit.
We do not have a subscription or a user charge fee, making us the most affordable.
It is the ability of people to get resources or finances to meet their short and long term needs. With Kenya’s economic disparity, citizens at the bottom of the pyramid find it difficult to access funds for either personal or business use. It is in this light that we have come up with a model that creates, manages and empowers citizens at the bottom of the pyramid to access funds.
In creating a sustainable process, we have mapped out the journey to financial inclusion, both in principle and process. From funds pooling to information management and activity listing, we have created and labelled a model that will onboard, manage and guide Chamas on self-reliance, and ultimately, financial inclusion.
With the small resources Chamas pool together, they are able to solve issues in real time. Constant contribution, lending and paying give them more resources to solve bigger issues as time goes by. Essentially, they have created a resource base that will alleviate them from perennial poverty. If they get the skills and guidance to manage the Chama, the sky is the limit.
Kenya is generally a capitalistic society where those who know what to do and have resources get to control factors of production. A disjointed, informal setting creates more gaps that widen the poor-rich gap, which is the main reason financial inclusion is a challenge. However, with the right strategy and systems, we hope to close the gap. Ours is a long-term journey towards financial freedom, and we carry as many people as possible along.
With the right mindset, scalable processes and civic education, the future looks bright. Flynta will undertake a massive campaign to sensitise the public on financial inclusion, provide the tools and technology, and help them make decisions. We also invite partners and well-wishers to come on board and help spread the information across the country.
Join thousands of chamas already growing with Flynta CBS.