Chama’s are designed to help its members achieve some financial goals that were otherwise away from their reach. However, if the group encounters the following, it may cause its dissolution ad he members will not enjoy the benefits of being in the group.

1. Non-committed members: When you start a chama, a little vetting is required. This will help to weed out the member who will not manage to save as the rest of the team.
2. Lack of rules: If a chama lacks guidelines that all members need to follow, the chama will fall apart very quickly. The members may disagree on very basic things, which will cause the chama not to take off. These rules need to state things such as minimum amount of investment, the deadline of contributions, exit terms and joining terms.
3. Lack of transparency: When the treasure or leaders fail to show the member where their funds are going, it will cause a lack of distrust in the group. If member do not rust their investments, they will pull out, causing the group to dissolve.
4. Lazy leaders: a good chama has vigilant leaders that are keen. They explore investment opportunities that the group can tap into. They maintain accurate records. And they keep the members active. With an incompetent management, the group will easily fall into disarray and the money be misappropriated.
5. Lack of a clear investment objective: Clear objectives drive the members towards a certain goal. Failure to have a clear objective for the Chama will guarantee the failure of the investment group. Different members will come up with differing investment options that will ultimately lead to disagreements and eventually the chama will disintegrate.