They contribute Sh1,000 per month per person and the money is loaned to members at 10 per cent per month. Even though this appears like a good way to build up the kitty, it does not help members grow financially. Now a new rule was introduced where members are supposed to make a one-off payment of Sh4,000. The answer is simple: when you pay Sh400 monthly for ten months, your total payment will be Sh4,000. All in all; there is a fundamental error in the way this investment group is set up.

Source: Daily Nation February 03, 2018 18:11 UTC