Joining a chama comes with many benefits, especially achieving financial stability and inclusion. Each chama has its unique goals, constitution, rules, and other regulations which every member must follow. Therefore, the member must choose a chama that aligns with the individual’s personal goals. In the article below, we will highlight a few major issues that an individual must consider before joining a chama.

What Should You Know Before Joining a Chama?

It is important to understand the ins and outs of a chama before investing your savings in one. Chamas constitute members who have a similar financial goal or seek to achieve a certain goal. Some chamas are exclusive to members sharing a similar educational or professional background. Others are open to different members who contribute towards a specific future investment. Thus, an individual must be aware of such information before registering for the chama.

Some of the major factors to consider include the following:

1. Purpose and Goals Before Joining the Chama

A chama’s goals and mission are what steer the chama into the financial direction it wants to take. Thus, all chama members must align themselves with the chama’s vision and mission to grow as one. Some chamas invest in community programs to uplift the community as their main goal before personal gain. Others tend to only take in members from a specific background, such as profession or geographical location. Therefore, it is important to check on such issues to avoid future conflict within the chama.

It is also important to check how long the chama has been running and the success rate of its different projects. A successful chama must have a great track record and progress, showing the chama’s commitment to its goals. Therefore, the most suitable chama is one that shows great progress despite unavoidable setbacks. Achieving set goals shows that the chama has unity and cohesion between its members and chama leaders. Therefore, it qualifies to be a better option which you can register and join for your benefit.

2. Membership Criteria Before Joining a Chama

Another important issue to look at is the membership criteria chamas use to check for member qualifications before joining. Membership criteria are requirements that check the specific qualifications each member must have before joining. For example, the chama requires that all members must have a common financial background, age, or location.

Membership criteria also touch on the contribution requirements that all members must make. For example, the member must get clarification on how to make chama contributions. Also, the member must understand the contribution frequency and penalties which may arise with late payments. Since some chamas offer member loans from the chama’s contributions, members must understand loan payment terms.

3. Governance and Leadership

A successful chama has great governance and leadership since chama administrators make most chama decisions. Chama administrators must foster transparency, accountability, and unity between all chama members. Therefore, all chama members must work together to achieve the chama’s goals and aspirations. Without good governance, the chama will collapse since there will be no order in the chama.

Chama administrators work to ensure that all members follow the chama’s constitution. Thus, each chama has its own set of rules and regulations, making up the chama constitution. Chama administrators have the right to expel members who create a negative environment for the rest of the members. Therefore, it is up to the members to follow the chama’s constitution and avoid penalties and other fines from the chama.

Also, members need to understand the decision-making processes, especially while handling finances. Although chama administrators enforce chama rules and regulations, all chama members have different responsibilities. Chama members must understand how they make different decisions and the roles that everyone plays in the chama. That way, chama members will work together in unity with minimal misunderstandings.

4. Financial Management and Transparency

A new member must understand the ins and outs of the chama, especially financial management in the chama. All chama members must take part in the financial decisions to ensure all members work towards a common goal. Additionally, all chama administrators must be transparent and accountable in all financial transactions. All financial records, including investments, income, loans, and transactions must remain open and accessible. Thus, the chama administrators will promote trust among all members of the chamas.

Also, chama administrators must be open to correction and positive criticism from other chama members. Every chama member’s opinion is acceptable as long as their opinion promotes growth, trust, and unity in the chama. Therefore, the chama will avoid making poor financial decisions and avoid bad investments. New members need to understand how the chama handles emergencies or unforeseen situations affecting the chama’s stability. Some situations may negatively impact the chama and the chama must have strategies to recover.

5. Evaluating the Group Dynamics and Social Compatibility Before Joining the Chama

Group dynamics and social compatibility means how the group aligns with one’s values. New members must consider whether they align with the group’s communication styles and decision-making processes. Also, consider member participation and commitment in the chama, including how the chama undertakes financial decisions. Therefore, ensure you are comfortable with the chama’s dynamic before joining the chama.

6. Legal and Regulatory Implications Before Joining the Chama

Some chamas must have legal documentation which allows them to have legal criteria governing the chama. However, most chamas have no external legal documentation and operate informally since they are few in membership. The members must understand the implications of both scenarios, whether the chama has legal implications or not. Legal documentation can directly affect the chama’s operations since they will affect the chama’s governorship.

7. Exit and Dissolution Procedures

As the member wishes to join the chama, they must also check on the exit procedures in case they wish to leave. Members must know the exit strategies applicable when they wish to leave the chama. Some chamas charge penalties when a member wishes to withdraw their savings from the chama. Others have different penalties for member termination, while others do not have such penalties. Thus, the member must understand the implications of leaving the chama and check whether it aligns with their needs.

Conclusion

Chamas within the community have become a bridge for many people to achieve financial stability through their savings. Many people opt to save through chamas rather than other traditional options due to better financial services. Currently, chamas have grown exponentially over the years, each offering different services from the other. Thus, it is necessary for an individual seeking to join a chama to research before joining one. That way, the chama member can choose the chama that best suits them and their financial needs.

Each chama carries its constitution that all chama members must follow to ensure the smooth running of the chama operations. However, the member must check whether the chama aligns with their personal values and interests. Although the chama has its own goals and aspirations, members must cross-check and see whether they fit in the chama. Some elements that chama members must look out for include the contribution set-up and chama leadership. Also, the member should check the legal documentation of the chama and whether it impacts the chama members.

Categorised in: General

This post was written by Joy Wanjiru

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