Kenyans can now invest as little as Ksh. 5 on their mobile phones. This is thanks to the new Chumz platform developed by Moneto Ventures in partnership with Nabo Capital. The Chumz app enables anyone with a mobile money account to create financial goals as an individual or as a group and invest their money towards the goals, track progress and earn interest.

Speaking at the launch, Moneto Ventures CEO, Samuel Njuguna, says the app will be available for download from Google Play and Apple App Stores. He explained that once a user is registered, they will be able to create saving goals as an individual or with a group. The app will then send prompts to the user to invest towards their goal and offer advice on investing based on spending habits. According to Njuguna, the app is authorized under the Capital Markets Authority (CMA) fintech Sandbox.

“Our journey in Chumz began when we observed that Kenya has numerous lending apps which are fueling a consumerism culture and limited investment solutions. We set out to find why customers were not taking up investment options in our developing market and learnt three things; most people are unbanked or under-banked. This means they have to spend more time and effort to invest their money. There is also heavy investment jargon by the financial sector that makes potential clients shy away from investing,” said Mr. Njuguna.

Mr. Njuguna added that for people who had been struggling with bringing themselves to save and invest, the Chumz app will automatically guide them on how much to invest based on their spending habits. “For instance, if you spend in a restaurant the app will suggest how much you need to save. You can also invest with family and friends as well as making use of behavioral psychology practices such as social nudges, default bias, and self-commitment to bridge the gap between intention and action,” he noted.

On his part, Nabo Capital Managing Director Pius Muchiri noted, “There are about 200,000 active investment accounts in the capital markets compared to over 34 million active bank accounts. He further noted that bridging this gap is the most important key to accelerating our economic growth. Through Chumz, we will enable Kenyans to achieve any aspiration including education, travel, home-ownership and so on. Our partnership is grounded on one desire: to democratize investment by giving people access to opportunities with competitive returns.”