ROTA FAQs
1. What is RotaMoney?
It is a digital platform for “Chamas” (savings groups) to save and lend collectively. We have digitised the traditional “money circle” (ROsCA) to help members pool funds and access lump sums interest-free.
2. Why use an app instead of an informal group?
– Transparency: Every member can view group balances, track contributions, and see real-time transaction histories, ensuring everyone is accountable.
– Automation: The app handles reminders, calculates payouts, saving time for group officials.
– Credit Building: By reporting regular payments to credit bureaus, the app can help members improve their formal credit ratings.
– Security: Digital records eliminate the risk of physical cash being lost or mismanaged during meetings.
3. How does the App work?
Members contribute a fixed amount (e.g., weekly or monthly), and the total pool is distributed to one member at a time, in a rotating cycle, until everyone has received it.
Registration & Compliance
1. Is Rota Money regulated?
In Kenya, digital credit providers must be licensed by the Central Bank of Kenya (CBK) which for Rota Money, is currently under process to be regulated.
2. Is the app Sharia-compliant?
The core ROSCAs model is based on interest-free lending and saving among members. If your platform only charges a service fee for the technology, rather than interest on the funds, it aligns with Islamic finance and ethical principles.
3. What documentation is needed?
Typically, users must provide their phone number, a scan of their National ID, and a selfie for identity verification (KYC) to comply with Kenyan anti-money laundering laws.
Financial Transactions
1. How do I make contributions?
You can deposit funds directly from M-PESA, mobile USSD or via bank transfer using a dedicated Paybill number.
2. How do I receive my payout?
Once it is your turn to receive the pool, the funds are transferred directly to your mobile money wallet or linked bank account.
3. What are the fees?
While registration is often free, the platform may charge a small fee per transaction and/or a monthly subscription for group management tools. Full fee details on the website.
Trust & Defaults
1. What happens if a member fails to contribute after receiving their payout?
The app uses a “trust score” system. Whilst late payers do not face automated penalties, however, persistent defaulters can be reported to the Credit Reference Bureau (CRB), affecting their ability to get loans elsewhere in Kenya.
2. Can the group chairperson run away with our money?"
No. Unlike traditional Chamas where one person holds the cash, funds on the app are held in a dedicated, secure, ring-fenced account that requires multiple member approvals (e.g., “digital signatures”) for any withdrawal outside the pre-set payout schedule.
Local Customisation (The "Chama" Culture)
1. Can we use this for more than just a money circle?
Yes. Groups can be set up for long-term goals like buying land, school fees, medical bills, funerals or a small business investment.
2. Do we still need to meet physically?"
Physical meetings are great for social bonding, but the app removes the necessity for them. You can manage contributions, voting, and payouts 100% remotely.
Technology & Connectivity
1. What if I have a 'Mulika Mwizi' (non-smartphone)?
Our platform offers USSD functionality so members without smartphones can still contribute and check their balances.
2. Is my data safe?
We are registered with the Office of the Data Protection Commissioner (ODPC) in Kenya. All your financial data is encrypted and never shared without your explicit consent.