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Business and Chama: Investing Beyond Borders.

Have you ever dreamt of your chama portfolio stretching beyond local borders? Or, as a business owner, you’ve yearned to tap into the potential of global investment markets to fuel your growth. If so, you’re not alone. 


Traditionally, chamas in Kenya have been on the front line in encouraging saving and investing. According to the Kenya Association of Investment Groups, The Chama Handbook, It is estimated that there are over 300,000 Chamas in the country controlling about Kshs.300billion worth of assets.” Ideally, chamas have impacted their members with merry-go-round returns, purchasing property, and offering soft loans. These are some of the traditional ways that chamas invest, limiting them from having a diverse portfolio that would ideally hold exchange-traded funds, bonds, and commodities.

 

For years,  entrepreneurs and businesses have strategically protected their earnings through investments in banking and insurance products. These investments have been the go-to for safeguarding business profits. However, recent changes in the tax landscape, as outlined in the Finance Bill Act 2023, have significantly impacted profitability and introduced considerable challenges for business owners. Not only are they now subject to high tax rates, but also coupled with diminished and low returns from the traditional investment options, coupled with additional fees.


At Ndovu, we understand this struggle. That’s why we are pleased to announce the launch of two innovative features—Ndovu Chama and Business. These features bridge the gap and empower chamas and businesses to access global investments, giving them the potential for significant returns at their fingertips.


Reach your group's financial goals with Chama on Ndovu.


According to a 2013 news article by the Standard, there were about 300,000 groups with an asset base of Sh300 billion at the time.  Fast forward a decade later, and the number of chamas in Kenya has significantly grown. In Kenya, chamas invest in local asset classes, including government bonds, money market funds, listed equities, and real estate. As much as they diversify their portfolios with these local assets, chamas are exposed to inflation.


So how can chamas counter the KES inflation and grow its member's wealth?

The Chama feature on Ndovu is here to transform how your chama or self-help group invests. Imagine, instead of limiting yourselves to traditional, often low-yield options, your registered chama can now leverage the power of global markets.  By holding a portfolio with different currencies, your chama is one step ahead in shielding itself from KES inflation.


Ndovu has made it easier for chamas to diversify with two different currencies. On Ndovu, your chama can hold a portfolio with the USD currency, which is more stable than the KES. This means your chama can watch its investments grow, reaching the group’s financial goals quicker and earning a passive income with the global funds. For instance, your chama can invest in the Microchip Fund with a yield return of 71.94%  in 2023 and, at the same time, hold another dollar fund like the Techie on Ndovu.


Breaking Barriers: Ndovu’s Business Impact on Business Owners.


Today, small and medium-sized enterprises (SMEs) are crucial in driving economic growth, development, and employment in Kenya. As these businesses aim to expand, majority rely on funding from banks, and to maintain loyalty, business owners deposit their extra cash with these banks.


Banks have traditionally been viewed as secure and convenient for financial transactions. This perception is based on banks offering low interest rates, which, when considering taxation and inflation, result in diminished returns. Therefore, when SMEs invest their profits in banks, they receive low income, affecting their business's growth rate.


Ndovu’s Business feature provides optimal investment choices. With Business, you can strategically allocate your profits in a carefully selected range of low-risk, growth-oriented global funds. As a business owner, this allows you to diversify your business portfolio with various international funds that offer potentially high returns. Additionally, you will receive free automated advice and complimentary advisory sessions with our financial experts, who can assist you in making smarter investment decisions with Ndovu.


Let’s look into their functionality.


How to Activate and Enjoy Business and Chama: A Step-by-Step Procedure.


This step-by-step guide lets you activate Business and Chama and explore their full potential!


How to create a business-type account on Ndovu


  1. Create a personal account on Ndovu and sign up.

  2. Select business type account.

  3. Provide your business name and country.

  4. Click on Invest and make your first deposit


Creating a chama-type account on Ndovu.


  1. Create an account on Ndovu and sign up.

  2. Select a Chama-type account.

  3. Provide your Chama’s name and country.

  4. Click on Invest and make your first deposit.



Navigating Business and Chama: A Comprehensive Guide for Ndovu Investors.


This is a guideline process for investors with Ndovu accounts who want to open a business or a chama account.


Steps for setting up a business account.


  1. Login to your Ndovu account.

  2. Click on your profile icon.

  3. Click on Create Account.

  4. Select a business account.

  5. Click on Get Started.

  6. Enter your business name and country.

  7. Click on the banner “ Account information required” to complete KYC.

  8. Make your first investment


Steps for setting up a Chama account.


  1. Login to your Ndovu account.

  2. Click on your profile icon.

  3. Click on Create Account & select Chama account.

  4. Enter your Chama’s name and country.

  5. Click on Get Started.

  6. Click on the banner “ Account information required” to complete KYC.

  7. Make your first investment.


Harness your financial dreams through the power of the Chama and Business Features.

As the sun sets on this financial journey, we invite you to enter a realm where dreams meet reality. With your chama members, your registered chama can now invest in global markets and ride on the waves of this opportunity. For entrepreneurs and innovators, this is a call to diversify your portfolio, amplify your profits, and let our financial experts be your business’ guiding stars. 


Experience a new era of investing propelled by efficiency, convenience, and simplicity with  Chama and Business on Ndovu. Sign up on Ndovu and invest with your chama or in the success of your business now.


Do you have questions? Click here to visit our FAQs page. You can also email support@ndovu.co, call, or WhatsApp 0715530530 to speak to our dedicated customer support team about this exciting new feature.



Disclaimer: Ndovu is a regulated Robo-advisory platform operated by Ndovu Wealth Limited (‘NWL’). NWL is a Fund Manager licensed by the Capital Markets Authority (Kenya).

The information provided on this platform and the products and services offered are intended solely for persons in regions and jurisdictions where such distribution and utilization are in accordance with local laws and regulations. 




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