Across Kenya, chamas and informal savings groups are now woven into daily life. They help parents pay school fees; families buy land and communities celebrating milestones. Their success is proof that pooling resources allows people to achieve far more together than they ever could alone.

But one area where chamas have yet to prove their full value is healthcare. Medical costs are among the biggest threats to household finances. A short hospital stay can run into hundreds of thousands of shillings, forcing families to turn to last-minute fundraisers.

In hindsight, more than 80% of Kenyans belong to a chama or SACCO, yet fewer than 20% have medical insurance. When illness strikes, members raid their savings, delay investments, or empty the group’s kitty. Acts of solidarity are common, but they often come at the expense of long-term goals.

When a member falls ill, the initial response of most chamas is to rally round. Contributions are collected, savings withdrawn, and future plans postponed or dropped entirely. It is a generous response, but it undermines the very purpose of the group, which is is building wealth together.

But there is a better way.

The same collective model that sustains chamas merry-go-rounds and table banking can also make healthcare affordable. By pooling resources, chamas can buy medical cover at rates that would be out of reach for individuals. Larger groups secure lower premiums, shorter waiting periods, and broader benefits, from outpatient treatment to maternity and even funeral costs.

The advantages also extend beyond money. Families gain dignity in times of loss, expectant mothers can plan with confidence, and ordinary illnesses no longer drain hard-earned savings. In cases of accident or hospitalisation, members draw on agreed benefits rather than scramble for emergency cash. It is solidarity put to more productive use. 

Instead of scrambling for money during a crisis members could concentrate on recovery, knowing their chama had already secured cover.

Consider a group of 20 people, each contributing KES 1,000 a month. In a year, their pooled funds could unlock inpatient cover of up to KES 1m per member, outpatient benefits of KES 100,000, and maternity protection. Without insurance, a single hospital stay might wipe out the group’s savings. With pooled cover, the kitty is preserved for investment, while members still gain access to care.

Rising living costs make health insurance increasingly essential. Once the preserve of formal employers, it is now within reach of small groups through products such as JubiAfya Micro Health Cover. With inpatient protection up to KES 1m and premiums tailored for affordability, chamas can access cover that was once unattainable. 

Digital access adds to the advantages as members can arrange treatment, choose facilities and authorise payments directly from their phones, cutting out paperwork and delay.

Kenya’s 300,000 chamas and SACCOs form one of the country’s strongest financial networks. If they added health protection to their savings and investments, they could transform access to care for millions.

The writer, Doughlas Mbugua, is Manager Emerging Markets ,Jubilee Health Insurance