Operating on trust alone is not adequate for chama

Operating the chama assets in the names of the founders is very risky in as much as you trust them. FILE PHOTO | POOL

Dear Cathy,

I am part of an informal investment group of about 20 friends otherwise commonly known as a “chama”. We each contribute monthly to a pooled fund and from the fund we make investments and allow members to borrow. The pooled fund is a bank account held in the joint names of the two founders. I was tasked by the chama to seek legal advice on the best structure to use as we grow.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.