Abstract:
Rotating Saving Credit Associations (ROSCAs) are groupings, formal or informal whose common objective is to satisfy individual interests like financial needs, household needs and purchase of property by the members. Normally members contribute capital according to mutually agreed terms of operation. ROSCA banking services are services introduced by financial institutions like
Bank of Africa, KCB, Corporative Bank, K-Rep Bank aimed at assisting members of ROSCAs achieve their financial needs. This is done by enabling the ROSCAs open “CHAMA” account with the banks through which they save and access credit services. Before 2011, ROSCAs banking services were not emphasized by banks, until then Bank of Africa introduced CHAMAs account to serve financial
needs for women groups.ROSCA banking services is experiencing growth in Kenya.
Specifically, we sort to examine how
competition, technology and banking culture influence growth of ROSCAs banking services in
the Nairobi CBD. The study adopted a descriptive research design, qualitative data was
collected from 110 chairpersons of ROSCAs and analysed by use of descriptive method.
Technology amongst banks had a great influence on the growth of ROSCA banking services
followed by culture and finally competition. Further, Mobile banking contributed more to the
use of technology in ROSCA banking services than other modes. The study recommends
government involvement to help ROSCAs to realise their objectives and their contribution to
the economy.
