SUPPORT

Zamara targets boda boda riders in new pension scheme

The partnership is aimed at bringing financial security and a future with dignity for the close to two million riders in the sector.

In Summary

•Each of the 2 million members can open their secure Fahari ya Boda Boda pensions and insurance account linked to their national ID in less than two minutes all completely automated.

•Fahari ya Boda Boda allows the sector members to save and build up a savings pot of money for their future financial needs.

Sundeep Raichura, Zamara Group CEO (left) and Kimani Wanduthi, Chairman United Boda Boda Association during the official signoff ceremony aimed at driving financial inclusivity to the sector./HANDOUT
Sundeep Raichura, Zamara Group CEO (left) and Kimani Wanduthi, Chairman United Boda Boda Association during the official signoff ceremony aimed at driving financial inclusivity to the sector./HANDOUT

Bodaboda operators could use their financial records to secure credit facilities from financial institutions if talks between Zamara, RBA and National Treasury are successful.

This is likely to enhance credit access to the sector viewed as high risk by lenders.

According to the Economic Survey 2021, the number of newly registered motorcycles increased by 16.2 per cent from 217,425 in 2019 to 252,601 in 2020.

Zamara's partnership with United Bodaboda Association of Kenya plans to bring on board boda boda riders into its Fahari Retirement plan that targets 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," said Zamara Group Chief Executive Officer, Sundeep Raichura.

He said the firms understand the risks that come with not having a savings pot for the future and shall offer boda boda operators an efficient means to plan and save for their retirement.

Raichura said that this industry is thought to support 5.2 million Kenyans directly or indirectly accounting for 11 per cent of the population.

Assuming the rider makes Sh700 per day then the sector generates close to Sh1billion per day and close to Sh357 billion anually.

Members can open their Fahari ya Boda Boda pensions and insurance account linked to their national ID using a smartphone or a simple feature phone on USSD or on 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," United Boda Boda association chairman, Kimani Wanduthi said.