Chamas and social savings groups are the last barrier that protects people when all else is failing like banks, or government or social welfare.
A picture worth 1000 words!
This picture was taken at Ruiru, a town about 20km beyond Nairobi city. What you see here is a group of motorcycles popularly known as boda bodas parked next to Wakini fueling station right outside Mama Lucy’s Deli on your way to Wa Matangi. The feel of this place is a blend between a pure rural and pure urban area – peri urban. Don’t be fooled by the dirt. So why are there 11 empty boda boda? Let me tell you why.Continue reading “Chamas are the Financial Side of Real World Social Networks”
Mshwari & Mpesa is only half the story. The rest of it is happening offline, in cash and trust networks
Don’t get me wrong, the efforts by the Kenyan financial inclusion industry have not gone unnoticed. Without naming specifics, the industry’s greatest feat by far is building a wide accessible network for formal financial services.
But access is only one item on a long list. It doesn’t matter how many bank accounts you give to the poor. Heck, even throw in a bitcoin cryptocurrency bank account – 2 mobile banks, 5 traditional bank accounts and 2 cryptocurrency bank accounts. Access means nothing when you can’t put money in people’s pockets. I speak for all when I say Kenyan people want to be empowered, they want more pesa in their pockets period. And that’s ok!
So when I criticize the industry, I mean well.
If you’ve been up and about in Kenya, you will appreciate how pesa will almost always positively correlate to some sort of biashara opportunity and even more likely one in the informal sector
My assertion is there is an overall failure by Kenya’s financial inclusion industry to look beyond the digital personas of the people of East Africa’s informal economy. Whereas, much of their lives unravel offline in cash, trust and biashara networks.
Could Kenya’s cryptocurrency peer to peer networks become agents or exchange points in a future where digital currencies and crypto assets are commonplace ?
The lack of an official or formal bitcoin payment gateway has done little to dampen the adoption rate of cryptocurrencies in Kenya. Quite the opposite in fact. People have adapted to this service gap by forming peer-to-peer networks where anyone can buy or sell cryptocurrency. These informal networks, resemble the airtime currency informal networks of pre-2006, that powered remittance payment networks before Mpesa became a thing.
How many of us think deeply about the pesa we use everyday? Here are 9 lenses we can look through to analyze all the pesa we use in Kenya today.
How many of us think deeply about the pesa we use everyday? In my experience, only a handful of us are conscious of the nuances of our day to day pesa. Yet, Kenya has one of the most colourful pesa diversity in the world. Bangla pesa, bonga points, Mpesa, Chama Pesa, Bitcoin, Cash and airtime are all part of Kenya’s money montage.
Here are 9 lenses we can look through to analyze all the pesa we use in Kenya today.