The Power of Diversification: How to Build a Resilient Portfolio

In 2023, it was reported that investments in Kenya were on a decline. Many blamed touch economic times and low confidence among investors. However, there is good news, especially with recent market developments.

In January 2025, the Capital Markets Authority (CMA) reported that Collective Investment Schemes (CIS) had grown to KSH 389.2 billion; a 23% jump from the previous quarter. This means more Kenyans are starting to invest, and that’s a trend we expect to continue.

One exciting reason behind this growth? The rise of Smart Investment Apps (ISPs); and one of the best examples is our very own Chumz.

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What are ISPs?

An ISP is simply a platform that helps you access and invest easily without needing to be a financial expert. These platforms make it easier for the "common mwananchi" to invest, without needing to understand complex financial systems. Think of it like a trusted bridge; connecting you to approved investment opportunities like Nabo Capital’s Unit Trust Funds.

One good example of an ISP is Chumz, an App that works with Nabo Capital. Through Chumz, anyone can start investing; helping people pool their resources together for greater financial growth.

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A Little Dive on Chumz:

Chumz stands out because it's changing the game. In the past, many investment opportunities were out of reach for most Kenyans because of high minimum investment amounts. Chumz has broken down those barriers, allowing people to start investing with smaller amounts, often as little as KSH 5. This makes it much easier for young people and those with limited savings to participate in the investment world.

Even better, Chumz isn't just about investing; it also educates its users, helping them understand how investments work and which options are best for their financial goals.

This guidance is crucial because many people, especially beginners, find investing confusing and intimidating. By breaking down complex investment concepts into simple language, Chumz empowers people to make informed decisions and take control of their financial future.

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Are These Investments Safe?

One of the most important questions when considering any investment is whether it’s safe. With Apps like Chumz, the good news is that they operate under strict regulations set by the Capital Markets Authority (CMA). These regulations ensure that such Apps are well-managed and secure.

For example, Chumz has partnered with Nabo Capital, a licensed and regulated fund manager, to handle the funds collected from its users. This partnership ensures that the investments are managed professionally, with a focus on safety and long-term growth.

Additionally, Apps like Chumz must meet several requirements to operate legally, such as following strong data protection and risk management guidelines. These measures ensure that your investments are in safe hands, and if anything goes wrong, there are clear procedures in place to address the issue.

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Opening Up The World of Investing

Chumz is playing a vital role in making investing more accessible to everyone. By lowering the minimum investment amounts, it has opened up opportunities for people who previously couldn't afford to invest. This shift is especially important for young people who may not have large amounts of money to invest, but still want to start building their wealth.

Chumz also act as a bridge between everyday people and the investment world. Based on current practices, it is a positive delight to many, as it is helping Kenyans understand the benefits of investing. By educating the public about investments, it is making it easier for people to make informed decisions.

This focus on financial literacy is key to creating a culture of savings and investing in Kenya.

Author: Brandon Otieno