It’s Table Banking Season! Time to Collect

If your mother has been pressuring you all year to send her ‘pesa ya chama’, it might be time to collect. This is the season when chamas, investment groups, and saccos begin to divide their savings and interest, an annual moment many look forward to.

Unlike the merry-go-rounds, where the full amount goes to one individual at a time, table banking is a model built on saving small amounts consistently. It also offers loans within the group at affordable interest rates.

How does it work?

A group of friends or colleagues with shared financial goals come together to build their financial strength. They agree on the minimum shares each member must invest and set a fixed weekly or monthly contribution.

The pooled money is placed “on the table” and offered to members as loans at rates significantly lower than those of traditional financial institutions.

Each month, members repay their loans along with the accrued interest. Alternatively, they may roll over the loan by paying the required interest.

This cycle continues throughout the year, gradually increasing both individual interest earnings and the group’s total savings.

Why join a table banking sacco?

In today’s economy, living in the moment can be risky, especially with an election season approaching. Being part of a group that’s accountable, disciplined, and consistent in saving helps you plan for the future.

In some saccos, the more you borrow, the higher your returns, since the interest is counted as part of your savings. Some groups share the total savings equally, while others allow members to earn interest based on their individual contributions.

Securing a guarantor for a loan can be stressful, especially when it affects someone’s pay slip. Table banking offers an alternative: you can borrow without a guarantor, making it easier to handle financial emergencies.

Borrowing from family and friends often leads to disappointment or strained relationships. If you’re seeking financial discipline, table banking is an excellent starting point. It encourages you to save and borrow responsibly, alongside like-minded individuals who are committed to building long-term financial security.

Also Read: 15 Ways To Save Money Around Your Home