Sh200 savings plan gives boda bodas new speed

Four years ago, John Mwanjero was a boda-boda rider living in a shanty at Chamber estate near Nyandarua hospital. Today, he has his own house and owns a brand new taxi, his wife Wanjiru is happy about that.

“There was no privacy or freedom, the constant quarrels over where to hang clothes. One had to be careful when washing clothes ensuring that water does not spill to neighbour’s door,” she said.

Today, the father of two is worth more than Sh1.5 million, with eyes on a better tomorrow.

Nguru Maina, an internally displaced person (IDP) from Molo shares similar success story.

He sought refuge from Molo in Nakuru County during the 2007 post-election violence, to do casual jobs in Ol Kalou town. As a motorbike rider, he earned Sh100 a day.

After two years of riding, Mr Maina saved in his mobile money account.

“My dream was to own a motorbike to enable me buy some land. But something would always crop up forcing me to spend part of the savings,” he recalls.

Then he joined a sacco. “The minimum opening deposit was Sh500. I withdrew all savings in my M-Pesa account and banked with the sacco. After six months, I had a total of savings of Sh40, 000 and I qualified for a boda-boda loan,” he said, in three years, he wants to drive his own car.

Mr Mwanjero and Mr Maina’s journey to success began in 2013 when Nyandarua Rural Industrial Sacco (Nyarisco) chairman Wambugu Kanuri invited them for a meeting. 

According to Mr Mwenjero, more than 200 motorbike riders attended the meeting.

Enticed by Nyarisco products, he took a risk and withdrew Sh20,000 savings from a bank that declined to give him a Sh75,000 loan.

“We were trained on financial management, need to join a sacco of our choice, and how to treat our customers to help retain and attract more,” said Mr Mwenjero.

To become a member, one required Sh500 minimum operating balance payable in small instalments and save Sh200 monthly, payable in instalments.

“What our youth lack is role models, people who can motivate and show them the way, leaders who understand today’s challenges and how to face them,” says Mr Kanuri.

“I deposit as many times as possible in a day. I deposit after every trip I make no matter how small the amount then get my receipt at the close of business. I only retain enough money for my family’s daily upkeep and to keep my taxi running,” says Mr Mwenjero.

That way, he exceeded his monthly targets.