Bodaboda businesses might utilize their financial records to get credit from financial institutions if Zamara, the RBA, and the National Treasury come to an agreement. This is likely to improve lending access to a sector that lenders consider high-risk.
Zamara is a financial services firm in Kenya that offers pensions Insurance Brokerage Services.
The number of newly registered motorcycles climbed by 16.2% from 217,425 in 2019 to 252,601 in 2020, according to the Economic Survey 2021.
Zamara’s relationship with the United Bodaboda Association of Kenya aims to recruit boda boda riders to its Fahari Retirement plan, which is geared toward riders.
“Bringing Boda Boda Association on board is a key component to us as Zamara to drive financial inclusion within all sectors of our economy.” Sundeep Raichura, Zamara Group Chief Executive Officer.
He stated that the companies are aware of the dangers of not having a savings account for the future and will provide boda boda operators with an easy way to plan and prepare for their retirement.
According to Raichura, the industry employs 5.2 million Kenyans directly or indirectly, accounting for 11% of the population.
Assuming the rider earns Sh700 per day, the sector generates around Sh1 billion per day and Sh357 billion annually.
Members can use a smartphone or a modest feature phone to open a Fahari ya Boda Boda pensions and insurance account connected to their national ID using USSD or WhatsApp.
“By addressing the issue of savings and financial literacy, we are empowered to create a savings culture within the sector, grow member savings and increase financial security.” Kimani Wanduthi, United Boda Boda association chairman.