Many Kenyans save money every month in bank accounts, mobile wallets, chamas or even physical cash boxes.
But while saving is a good habit, money that sits idle without earning interest could be a missed opportunity.
Across the country, more individuals, households and investment groups are now looking for smarter ways to grow their savings instead of just keeping money aside.
One such group is BEMSTAR, a chama that was started more than 25 years ago by five college friends in Githunguri.
The group began as a simple merry-go-round, where members contributed money and took turns receiving the pooled amount.
At the time, the arrangement was practical and helped the members build discipline around saving.
However, as their careers grew and their monthly contributions increased, the members started thinking beyond short-term savings.
They realised they could become more than a savings circle. They could become a serious investment group.
After about 10 years of consistent saving, BEMSTAR had built a sizeable capital base.
The members then opened a group investment account, which allowed them to earn better returns on money they were not using immediately.
According to the group’s journey, this decision changed how they viewed money.
Instead of simply collecting and distributing funds, they began planning for bigger goals with more confidence.
Today, BEMSTAR members are proud landowners, having turned small monthly contributions into tangible assets.
Their story shows how chamas, small businesses and individual savers can move from basic saving to wealth creation through Collective Investment Schemes.
Collective Investment Schemes, also known as CISs, are professionally managed pools of money collected from different investors who share common financial goals.
In Kenya, these schemes are regulated by the Capital Markets Authority and supervised by independent trustees and custodians.
A trustee protects the interests of investors and ensures the scheme is managed according to the law and its objectives.
A custodian, usually a bank, safely holds the assets of the scheme, such as shares and bonds, and handles transactions on behalf of investors.
CISs come in different forms, including money market funds, balanced funds and equity funds.
This gives investors options depending on their goals, risk appetite and how long they want to invest.
By pooling money with other investors, individuals and groups can benefit from professional management, diversification and lower investment costs.
This can be difficult to achieve when investing alone.
With inflation affecting the cost of living, Kenyans are being encouraged to choose savings and investment options that protect the value of their money.
Money market funds, for example, offer a low-risk way to preserve capital while earning returns.
They also allow investors to access their money when needed, whether for an emergency or a new opportunity.
The investment space is also changing.
Investors can now access products that combine local fixed-income investments with global assets such as exchange-traded funds and international equities.
Funds such as the CIC Global Balanced Special Fund show how spreading investments across different markets and asset classes can help reduce risk while supporting long-term growth.
As Kenya continues to promote a stronger savings culture and financial inclusion, the conversation is shifting.
The key question is no longer whether people are saving.
It is whether their savings are working for them.
For many chamas and households, BEMSTAR’s story is a reminder that money kept safely brings comfort, but money invested wisely can create progress.
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