Merry Go Round

What is a Merry Go Round?

Merry Go Round is a formal or informal group where members equally contribute on a regular basis (mostly weekly or monthly) and give the cumulative amount to one of the members. Each of the group members receives the cumulative amount, after which the cycle ends. Merry go rounds are prevalent in rural and low income areas, thanks to their cohesive nature.

How different is Merry Go Round from Table Banking?

Merry go round does not withhold funds. Once all the members contribute, the entire amount goes to one of the members. The same process occur until everyone gets the same amount. For table banking, members contribute and borrow, to return it with interest. Eventually, the amount grows with time, and the members earn dividends on their contributions.

Is Merry Go Round important in capacity building and financial Inclusion?

Yes.

Members’ contributions and remittance go a long way in growing their socio-economic abilities. Most merry go rounds have targets which can be achieved once a member gets the amount. Some even decide to buy or invest in income generating activities for profits. With such plans, though informal, the group angle towards financial inclusion, which if tapped and encouraged, can increase the informal sector’s contribution to economic growth.

How is Chama Systems contributing to the Merry Go Round movement?

We have automated the process to act as an escrow account as we provide professional advice on the Chama culture to strengthen our “Promoting Financial Inclusion” mantra. Most importantly, we aim to nurture socio-economic growth and development through trainings and progressive approach to resource building among the citizens at the bottom of the pyramid.

Are our Merry Go Round contributions secure?

Our system runs on a reinforced SSL for maximum online security. We guarantee that no one has access to your information. Chama Systems also has a strict data privacy policy guided by the Data Protection Act of Kenya.

Is social welfare better than a merry go round?

Both services are unique and serve different purposes. For economic empowerment activities, merry go round is ideal (but table banking is better.) For social and culturally-inclined grouping like bereavement, planned group trips, or sickness contributions, a social welfare serves the purpose.

How many people can Chama Systems have per Merry Go Round group?

One Merry Go Round group can have up to 50 members.