Gen Z chamas: The digital evolution of Kenya’s traditional savings groups

For generations, chamas, informal savings and investment groups, have been a cornerstone of Kenya’s financial culture. They have traditionally been associated with older generations pooling resources for wealth creation, investment, and social support. However, a new wave of young, tech-savvy Kenyans is redefining these groups, making them relevant to the digital age and their unique aspirations.

Kenya’s Gen Zs are bringing a fresh perspective to chamas. Unlike their predecessors, who primarily saved for land purchases, school fees, or retirement, Gen Z chamas focus on innovative ventures, digital finance, and social impact.

The younger generation is not only focusing on financial savings but have also evolved into communities of like-minded individuals passionate about entrepreneurship, investment, personal development, and social engagement.

The rise of fin-tech platforms has made it easier for these young chamas to operate efficiently, eliminating the need for physical meetings and cash transactions.

Many young people are forming chamas to invest in stocks and startup ventures. Instead of waiting to accumulate personal wealth, they pool resources to invest in emerging business opportunities.

Unlike traditional saving groups that focused on long-term investments, some Gen Z chamas save money for shared experiences such as travel, concerts, or adventure activities. These groups prioritize lifestyle over assets, ensuring that members can explore the world while still practicing financial discipline.

“Currently, my girlfriends and I are in a chama. We started at the beginning of the year, where we made a plan that we will be saving a certain amount daily until the end of the year. It has been very effective because we get to save effortlessly in small portions and at the end of the year, the goal is to travel,” Wanjiru, 22, mentioned.

With Kenya’s growing tech scene, Gen Z is leveraging chamas to fund innovative tech projects, app development, and digital startups. These chamas act as incubators where young innovators collaborate, fundraise, and build their businesses together.

Otieno, a digital creator, mentioned that his main aim for starting a chama was to own and run a business with his friends. The emergence of digital platforms like Chumz made it easier for them to trace and keep records safely is assured.

Networking is a powerful tool in career advancement, and some chamas are shifting focus to professional development. These groups save for skills training, mentorship programs, and industry conferences, ensuring that members invest in their personal growth.

Unlike traditional chamas that relied on physical meetings, Gen Z chamas use digital banking solutions such as M-Pesa and fintech apps for secure and transparent transactions.

“I have a sense of financial security through chamas, it is also a good way for me to track my finances throughout the month and the best part is that a goal is always achieved by the end of the chama period - enjoyment,” Muthoni Mithika, a student, stated.

Instead of rigid monthly contributions, many chamas allow for flexible savings, catering to the irregular income patterns of freelancers and gig workers.

Kagwiria, 22, mentioned that being in a chama as a student has been very interesting, terming it a beautiful way of seeing things happen.

“There is power in growing together as friends, investing as a group has brought about mentorship and a sense of community,” she told Citizen Digital.

These chamas are more than financial groups; they foster strong friendships, mentorship, and networking opportunities. Many young people now use these groups to learn about financial independence, investment, and wealth creation through shared knowledge.

Kioko Emmanuel said it helped him with saving for something that, although tied to leisure and pleasure, required discipline because of hitting monthly targets to avoid fines.

“I can say it has taught me proper budgeting, knowing how to play with percentages of my money and what goes where and why it’s going there. It has also taught me the power of financial goal setting and working around achieving the set goals,” he added.

Gen Z chamas are more than just savings groups, they are a reflection of a generation that values financial independence, digital innovation, and meaningful experiences. As they continue to evolve, they are not only modernizing traditional financial practices but also shaping the future of economic empowerment in Kenya.

Whether for investment, travel, tech, or sustainability, these chamas offer young Kenyans a platform to achieve their financial goals while building strong, supportive communities.