To open up or not: Risks behind the push to formalise 'chamas'

Ikuusya Wamama Tuamke women group Secretary Elizabeth Mulei and  Chairlady Josephine Kanini  address the members during a   Table Banking meeting in Mwingi supported by ADRA Kenya on November  13, 2020. [File, Standard]

When it comes to financial inclusion, the strategy of mainstream banking institutions has always been to find ways to have informal engagements formalised.

This means having the chamas (groups savings), table banking, and merry-go-rounds on boarded by a regulated financial institution so that they can benefit from perks such as loans, insurance and capacity building which come with being formalised. 

But rarely do players in the sector look at how this transformation interferes with an already working system as far as the members are involved.