Bodaboda operators start a Sacco to build financial muscle and develop a saving culture

Kiambu,

KNA November 14, 2023

KNA by Grace Naishoo

In Kiambu County, a group of motorcycle taxis popularly known as Boda-boda riders have come together to start their own SACCO known as KIMWI Bodaboda Welfare Association.

The Bodaboda Welfare Association with its origins in Githurai 45 has a total of 3,000 active members, and their main agenda is to empower themselves economically by offering a place where members can save and borrow to expand their business for economic growth.

During the inauguration ceremony of the group’s new officials held last week Kiambu Governor Kimani Wamatangi offered the group a starting deposit of Sh 1 million to help initiate their activities.

“My administration is prepared to assist the 3,000-member association in becoming a Sacco that will see it establish income-generating ventures and provide financial assistance to members,” the governor said.

He added that the group's decision to transition into a Sacco is commendable and a move in the right direction.

“The Kiambu County Directorate of Cooperatives is ready and willing to guide the association through the necessary procedures and provide the technical assistance required to facilitate this transition,” stated Wamatangi.

In his statement, KIMWI Bodaboda Welfare Association chairman Mr. John Mwaura Macharia said the idea of the Sacco is meant to uplift the riders’ livelihood by buying them land, and motorcycles, and also avail them with the capacity to build them with knowledge and skills on investment and savings. 

“The idea of forming a SACCO came as a result of peculiar challenges that are mainly faced by boda-boda riders and not by other players in the transport sector; Boda-bodas in Kenya are mostly owned by low-income earners and the profit margins are not high enough to provide a decent living.” chairman Macharia explained.

Macharia further notes that the group already has a registered bank account as they have been as group money collected daily. 

“Members save on a daily or weekly basis with the minimum amount a member can save to the development kitty being Sh 200 per week and this is the money we lend out to our members as loans,” Macharia said. 

He added that the Sacco is going to be a game changer for the members as they intend to explore other economic options, including buying motorcycles for their members, buses, and even land. 

“There was mistrust between boda bodas and traditional lenders forcing us to want to start something we can own as boda boda riders, thus offering loans to our members at a very low interest compared to another lender therefore unshackling our members from the burden of slavery where they are required to paying triple the amount borrowed,” cited Macharia. 

Under Kenya’s Vision 2030, the country aims at transforming into an industrialized middle-income economy offering high-quality life to its citizens in a clean and secure environment.

One way of achieving this is through Savings and Credit Cooperatives (SACCOs).

Kenya has one of Africa’s vibrant Sacco movements with the unions enabling millions across all economic sectors to save, invest, pay school fees, and even buy land and build homes. 

A report from the State Department of Cooperatives indicates that there are over 22,000 Saccos in the country with membership being drawn from different groups including farmers, workers, and small or medium business persons, the report further shows that Saccos have mobilized domestic savings worth over Sh400 billion, accounting for 33 percent of the national savings. 

Courtesy; KNA