The Inspiring Journey of 'Tushikane Investment Chama' on the NSE
We all love a good success story, especially when it shows how ordinary Kenyans can achieve extraordinary things. Today, I want to share a story a true-to-life account, though the names are changed of how a determined chama transformed small, consistent savings into significant wealth by smartly investing on the Nairobi Securities Exchange (NSE).
Meet "Tushikane Investment Chama." It began in 2017 with eight ambitious friends from different walks of life, two teachers, a small business owner, an accountant, a civil servant, and three university lecturers. Tired of their savings just sitting in a bank, they dreamt of bigger things: buying land for each member, perhaps even building rental units.
The Humble Beginning: Overcoming Fear
Initially, the idea of investing in the stock market felt like "gambling" to some members. They heard stories of people losing money. "Isn't that for the big shots?" one asked. But led by Mama Zawadi, the chama's elected investment secretary, they decided to learn.
They started with a monthly contribution of KSh 5,000 per member. That's KSh 40,000 a month for the chama. It felt small, but they were consistent.
Their first crucial step was to research and pick a reliable, CMA-licensed stockbroker who had good customer service and an easy-to-use online platform. They opened their chama's CDS account and were ready to go.
The Strategy: Patience, Research, and Diversification
Mama Zawadi, with the accountant's help, proposed a simple strategy that everyone agreed on:
Long-Term View: "We are not here to get rich overnight," she declared. "We are investing for our future, five to ten years from now. We will buy good companies and hold them."
Collective Research: Each month, two members were tasked with researching a few companies listed on the NSE. They looked at things like:
Is it a company whose products or services we use and trust? (e.g., banks, Safaricom, consumer goods like EABL).
Does it consistently make profits?
Does it pay dividends regularly? (They loved the idea of getting paid just for owning shares!).
What are the experts saying about it? (They'd check broker research reports).
Diversification: Instead of putting all their KSh 40,000 into one company each month, they decided to spread it out. They started by investing in established "blue-chip" companies known for stability and dividends. Their first buys included shares in Safaricom, Equity Bank, and EABL. Over time, they added KCB Bank and a few manufacturing companies.
Reinvesting Dividends: Whenever they received dividends (which felt like free money!), they immediately used it to buy even more shares. This was their secret sauce – compounding!
Navigating the Storms: Discipline in Tough Times
Their journey wasn't always smooth. There were moments of doubt:
Market Dips: In 2020, when the global pandemic hit, the NSE took a dip. Some members panicked. "Should we sell? We're losing money!" But Mama Zawadi reminded them of their long-term goal and their commitment to research. "These are strong companies," she'd assure them. "They will recover. We are buying a piece of their business, not just a stock price."
Temptation to Withdraw: There were times when individual members faced emergencies and wanted to pull out their share. The chama's clear rules for withdrawal (which included a notice period and a small exit fee to protect the remaining members) helped manage these situations without derailing the group's overall progress.
They continued their KSh 40,000 monthly contributions, buying more shares when prices were low which felt counter-intuitive but proved smart in the long run.
The Sweet Taste of Success: Ten Years On
Fast forward to 2027 – ten years after they started. 'Tushikane Investment Chama' held a special meeting. Their initial KSh 5,000 monthly contributions had blossomed. Their portfolio, a mix of capital gains shares increasing in value and consistent dividends, was now valued at over KSh 15 million!
With this impressive growth, they achieved their first major goal: they purchased two prime plots of land in a developing area outside Nairobi, registered under the chama's name, which they plan to allocate to members or develop further. They also had enough liquid cash to refund members who had accumulated shares based on their contribution ratio to put towards their children's university education or other personal projects.
Lessons from 'Tushikane': Your Chama Can Do It Too!
The success of 'Tushikane Investment Chama' wasn't magic; it was the result of simple, powerful principles:
Start Small, Stay Consistent: Even KSh 5,000 a month adds up to a fortune over time.
Learn Together: Don't be afraid of what you don't know. Research, discuss, and learn as a team.
Think Long-Term: The stock market rewards patience. Focus on the quality of the companies, not just daily price swings.
Diversify: Don't put all your eggs in one basket. Spread your investments across different strong companies.
Reinvest Dividends: Let the power of compounding work for you – it's your money making more money!
Discipline & Clear Rules: Having agreed-upon guidelines keeps the chama focused and prevents emotional decisions.
If 'Tushikane' could do it, your chama can too! The NSE is an accessible avenue for collective wealth creation. All it takes is a clear vision, consistent effort, and a shared commitment to grow together.
Has your chama invested in the NSE?
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