Kenyans can now invest as little as five shillings on their mobile phones thanks to a new platform Chumz, developed by Moneto Ventures Ltd in partnership with Nabo Capital, a leading fund manager in Kenya regulated by the Capital Markets Authority and Retirement Benefits Authority.
Chumz is an app that enables anyone with a mobile money account to create financial goals as an individual or as a group and invest their money towards the goals, track progress and earn interest. To provide the best available advice and investment options for investors, Chumz has partnered with Nabo Capital.
CEO Moneto Samuel Njuguna says the app will be available for download from Google Play and Apple App Stores. He said once a user is registered, they will be able to create saving goals as an individual or with a group. The app will then send prompts to the user to invest towards their goal and offer advice on investing based on spending habits. Noting that the app is authorized under the Capital Markets Authority fintech Sandbox.
Mr. Njuguna said research carried out by the firm indicates that Kenyans have a “self-imposed” limitation that they can only save Ksh. 1,000 and above.
He said the research also highlighted that Kenyans lack awareness on investment channels they could easily access and track their investment with minimal friction in terms of time and financial cost in making the investment.
Mr. Njuguna noted that while a lot of Kenyans expressed the desire to invest, most were experiencing psychological barriers to investing including lack of commitment to a saving plan, being overwhelmed by expenses and forgoing saving for instant gratification.
“The platform will allow users to invest as low as Ksh. 5 to enable individuals to build a savings culture. This concept is in line with the tradition of using piggy banks to save and nurturing the habit of saving,” he further noted.
Speaking at the launch, Nabo Capital Managing Director Pius Muchiri noted ‘that there are about 200,000 active investment accounts in the capital markets compared to over 34 million active bank accounts. He further noted that bridging this gap is the most important key to accelerating our economic growth.
“Through Chumz, we will enable Kenyans to achieve any aspiration including education, travel, home-ownership and so on. Our partnership is grounded on one desire: to democratize investment by giving people access to opportunities with competitive returns.”
Mr. Muchiri further noted that, chamas (informal groups where people pool money together and invest) are a way of life in Africa including Kenya. There are estimated to be 300,000 chamas managing a total of KSH 300 billion in assets; a number that could rapidly increase with proper governance structures & investment platforms.
“Some of the challenges that chamas face are lack of transparency and investment expertise. This App will enable all members to contribute at their own convenience towards their goals and view in real-time how Nabo is growing their money through various investment solutions that are tailored for their needs”, he further noted.
