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Chamas Don't Work
Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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maka wrote:wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? Am in one and it is growing steadily...10 good friends...we meet every quarter on a rotational basis with one guy hosting,contribution is 5k per month we have been together for 3 years now...all the cash is sent to the treasurer end month( before the 5th) and banked collectively...Max loan you can take is 100k payable in 3months,reducing balance....@10%...you need two guys to guarantee you for you to take a loan...Every quarter we buy long ended bonds...the 30 year (SDB with a return of net 10.8%,maturing in 2041) or the 20 year bonds are the most preffered...in the course of this year we are looking at each member doing a cash injection to boost reserves...They work depending on what you guys have in mind... The hardest thing is deciding collectively what to do with the cash after some time and i think thats why most chamas/investment clubs collapse... Unless you do interviews is hard to know if a member is stubborn or constructive. Most friends are good till when money is involved.@maka yours sounds like a sacco though "friends sacco" If well utilized chama are good but problem is dealing with humans. That's why major saccos are successful because there is no personal friendship involved, it's just business. Kudos to yours maka.yours should be a case study.
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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maka wrote:wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? Am in one and it is growing steadily...10 good friends...we meet every quarter on a rotational basis with one guy hosting,contribution is 5k per month we have been together for 3 years now...all the cash is sent to the treasurer end month( before the 5th) and banked collectively...Max loan you can take is 100k payable in 3months,reducing balance....@10%...you need two guys to guarantee you for you to take a loan...Every quarter we buy long ended bonds...the 30 year (SDB with a return of net 10.8%,maturing in 2041) or the 20 year bonds are the most preffered...in the course of this year we are looking at each member doing a cash injection to boost reserves...They work depending on what you guys have in mind... The hardest thing is deciding collectively what to do with the cash after some time and i think thats why most chamas/investment clubs collapse... That's the key. 
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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maka wrote:wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? Am in one and it is growing steadily...10 good friends...we meet every quarter on a rotational basis with one guy hosting,contribution is 5k per month we have been together for 3 years now...all the cash is sent to the treasurer end month( before the 5th) and banked collectively...Max loan you can take is 100k payable in 3months,reducing balance....@10%...you need two guys to guarantee you for you to take a loan...Every quarter we buy long ended bonds...the 30 year (SDB with a return of net 10.8%,maturing in 2041) or the 20 year bonds are the most preffered...in the course of this year we are looking at each member doing a cash injection to boost reserves...They work depending on what you guys have in mind... The hardest thing is deciding collectively what to do with the cash after some time and i think thats why most chamas/investment clubs collapse... That's the key. .most guys will agree when starting. everyone is loyal, committed, and big ideas oriented. As time goes by and money grows big,then members forget what united them in the beginning. Then there creeps in fitina, witch hunting, greed and mistrust. Then politics takes control. Unless it's small and has a clear defined roles like hii chama ni ya buying housing utensils nothing else then it's a success but if it's to venture into a risk taking venture then it will flop miserably .....if members don't understand what risky ventures are!!!
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Quote:I’ve been around too many Chamas to beat around the bush anymore. You may be attached to your Chama. Have great plans for it. You may even have started out with the best intentions. To be the next Centum or various other examples that people constantly use. But go out and talk to people who are in Chamas. Listen to the frustration. Listen to the discontent. Sometimes you will even hear squabbles between members. So many people are in Chamas but many are facing the issues I have just mentioned. Say a company came out with a new phone. Then out of the 10 models produced, eight did not work. It would then be fair to say that the phone doesn’t work. Hence why I am saying Chamas don’t work. Most people especially in modern day middle class Chamas are not wealthy because of that investment group that was started 5,10, 15 years ago. Most people are simply “hoping” that at some point something will happen to make their investment group become the next big thing. But sadly they keep doing the very same things that ensure that the Chama will not work. So at best it will be a savings scheme. Your Chama firstly will not work because you think like a Chama as opposed to a business. There was obviously something done different with the two phones that worked, right? Hence the few investment groups that do work are doing something different and it starts with how they see themselves. Are you in business or are you social? It’s amazing how in their everyday jobs people may be in charge of making money for others. http://www.centonomy.com/chamas-dont-work/
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Ofcourse they won't work if all you do is beat around the bush.....next! "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 5/5/2011 Posts: 1,059
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Gospel,I refused to join many guys still there contributing 5k to give to one guy. To Each His Own
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Are you aware that most of the great corporates in the world were once Chama’s.
Yes 95% of start-ups will fail and when you look at the hip you get very scared but always remember the world economies are driven by the 5% that succeeded in the past.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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kayhara wrote:Gospel,I refused to join many guys still there contributing 5k to give to one guy. Why? No agenda? No common goals, No memo of understanding? No group account/ registration? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Whats the definition of a chama?Is it just a merry-goround?
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Rank: New-farer Joined: 5/22/2014 Posts: 78
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'Chamas Don't Work'
that's a very generic statement, groups with strategies that are either wrong or those that fail to work do not represent all Chamas
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Rank: Member Joined: 3/26/2012 Posts: 280
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Seconded. They don't work. For eating mbuzi boooze and mchango. DOH
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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this thread was just a matter of time after the T29 saga  I may be wrong..but then I could be right
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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kayhara wrote:Gospel,I refused to join many guys still there contributing 5k to give to one guy. I think this type was left to the village women folk? Where you contribute monthly for a member..if you are member no. 50, ole wako; by the time wakufikie only 5 members would be left. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 2/9/2012 Posts: 576
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This things dont work. Ours failed.Case study of a successful one? Africa belongs to Africans.
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Rank: Member Joined: 2/4/2016 Posts: 175 Location: Global
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wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? Let me give our case and you can decide if it is successful Started as 10 pax in year 2000.Today we are 4 with 2 members falling out due to financial constraints,2 falling out coz they got married and hubby said no to chamas and 2 are on their way out coz they seem not to cope with other members. The remaining 4 are recruiting new members to take it back to original membership. First 5 years was contributions and buying members households,birthday gifts and being part of each others social activities(weddings/funerals/births). With the savings of the 5 years we bought 5 acres at Isinya at 800k and we each got half an acre.Departing members have sold their pieces at 2.4M We then bought land in Nakuru and sold after 3 years.No much gain. We then bought an apartment at Pangani and took a loan on it.We have just finished paying the loan. We are currently looking for a ready made house in Kasarani or Embakassi with 20 units which will gurantee each member 2 units if we are 10 or 5 units if we remain 4.Our bank is willing to give us upto 40M for the property. We raise 10k monthly.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? Ours. Group of 5 friends Investment limited to land, subdivided and move on...It's upon individual members to decide to do with their individual land allocated to them. 5 years and going on strong If Obiero did it, Who Am I?
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Ethiteri wrote:wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? Let me give our case and you can decide if it is successful Started as 10 pax in year 2000.Today we are 4 with 2 members falling out due to financial constraints,2 falling out coz they got married and hubby said no to chamas and 2 are on their way out coz they seem not to cope with other members. The remaining 4 are recruiting new members to take it back to original membership. First 5 years was contributions and buying members households,birthday gifts and being part of each others social activities(weddings/funerals/births). With the savings of the 5 years we bought 5 acres at Isinya at 800k and we each got half an acre.Departing members have sold their pieces at 2.4M We then bought land in Nakuru and sold after 3 years.No much gain. We then bought an apartment at Pangani and took a loan on it.We have just finished paying the loan. We are currently looking for a ready made house in Kasarani or Embakassi with 20 units which will gurantee each member 2 units if we are 10 or 4 units if we remain 4.Our bank is willing to give us upto 40M for the property. We raise 10k monthly. You are women ............. ooops sorry!!! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? The one am in started in 2005 20 people (couples). One couple left in the initial stages due to financial difficulties/obligations. Like many Kenyans, most of us did not read and synthesize the terms of MOU and in it, we have a clause that once you exit you get 85% of contribution(not gains realized from investments). The couple that exited was not pleased. The rest love money just too much to let go of 15% Investments are in land, shares in various Saccos and NSE "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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murchr wrote:wazuaguest wrote:This things dont work.
Ours failed.Case study of a successful one? The one am in started in 2005 20 people (couples). One couple left in the initial stages due to financial difficulties/obligations. Like many Kenyans, most of us did not read and synthesize the terms of MOU and in it, we have a clause that once you exit you get 85% of contribution(not gains realized from investments). The couple that exited was not pleased. The rest love money just too much to let go of 15% Investments are in land, shares in various Saccos and NSE Getate/susu/merry-go-round /chama all are just social welfare committees where petty politics and gossips are talked of. The only unifying factor is money contribution ,if that's not honored then a thin line between love and hate is defined clearly .I find them more feasible for small scale business who banking can be a challenge . That's just me
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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One word for you anti chamas. ITRADE. like mindedness a must Foresight..
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