How Collective Investment Schemes are Transforming Community Wealth #AD

Across the country, however, a quiet shift is happening as households begin exploring smarter, collective ways to grow their money.

Take BEMSTAR, for example. More than 25 years ago, five college friends in Githunguri came together to start the group as a simple merry-go-round where each member took turns receiving pooled contributions.

It was practical. It was disciplined. And it worked. As their careers progressed and their monthly contributions grew, so did their ambition.

They began to see themselves not just as a savings circle, but as a structured chama with long-term goals.

After a decade of steady savings, BEMSTAR had built substantial capital, and they opened a group investment account.

This allowed them to earn better interest from the cash they were not immediately using. The members quickly noticed the difference: The structured returns gave them confidence, clarity, and the ability to plan for bigger ventures.

That is the difference between saving and building wealth

Today, the members are proud landowners, having turned modest monthly savings into a growing capital base and tangible assets. BEMSTAR’s journey illustrates how any chama, SME, or individual can upgrade their savings model through Collective Investment Schemes (CISs).

These are professionally managed pools of funds from many investors who share common goals. In Kenya, these schemes are regulated by the Capital Markets Authority (CMA) and supervised by independent trustees and custodians.

In simple terms, a trustee is an independent institution that safeguards investors’ interests and ensures the scheme is run according to the law and its objectives.

A custodian, typically a bank, holds the scheme’s assets (such as shares and bonds) for safekeeping and processes transactions on its behalf.

CIS come in different types, such as money market funds, balanced funds, and equity funds, so there’s something for every investor.

By pooling your money with other investors, you get the benefits of diversification, professional management, and lower costs, which can be hard to achieve on your own.

With inflation in the picture, it is important to choose saving and investment options that protect your money’s value.

Money Market Funds, for example, offer a low‑risk way to preserve your capital while still earning a return. And because your money remains easily accessible, you can tap into it quickly whenever you need it, whether for an opportunity or an emergency.

Safeguarding purchasing power is important in a country working to deepen its savings culture and expand financial inclusion.

Our market is evolving. Investors now have access to funds that blend local fixed-income securities with global assets such as exchange-traded funds and global equities.

Products like the CIC Global Balanced Special Fund show how diversification can protect you against market instabilities while pursuing long-term growth by spreading your investments across different asset types and regions.

Remember, in today’s economy, every shilling has the power to drive meaningful progress. The focus is no longer on whether we are saving but whether our savings are designed to grow.

After all, money kept safe is comfort, but money invested with intention is progress.