Through modest savings from their daily earnings, the 200-member Charagita Boda Boda self-help group owns a petrol station and a plot at Ngano market, Ol Joro Orok Constituency, Nyandarua County, where they plan to construct a Sh6.5 million office complex.
Ngano is about 20km from Nyahururu town. Motorcycles are the main means of transport due to poor road infrastructure.
The pathetic state of local roads was part of the group’s motivation to save and invest.
A group of motorbike operators in a remote market is reaping the benefits of four years of financial discipline, commitment and patience.
Through modest savings from their daily earnings, the 200-member Charagita Boda Boda self-help group owns a petrol station and a plot at Ngano market, Ol Joro Orok Constituency, Nyandarua County, where they plan to construct a Sh6.5 million office complex.
Ngano is about 20km from Nyahururu town. Motorcycles are the main means of transport due to poor road infrastructure.
The pathetic state of local roads was part of the group’s motivation to save and invest.
During this year Ushirika Day Celebrations, the group was recognised as the best-managed transport sacco in Nyandarua County. “Traders were taking advantage of the bad road to sell petrol at between Sh130 and Sh150 per litre. We currently sell petrol at Sh110 to our members and other customers,” said group chairman Jack Ndiritu.
Nyandarua County Commissioner Samuel Kimiti said the group is a role model to other motorbike operators.
“We are encouraged and motivated by what they are doing. The Ministry of Interior and Coordination of National Government is now using them as a case study. This shows how profitable boda boda business can be if well managed and supported,” said Mr Kimiti.His office is mobilising other boda boda operators to form similar groups and invest.
A survey by the county commissioner’s office shows there are over 3,000 motorbike operators in the region.
To mobilise resources for construction of the office complex, the group is selling shares to the public at Sh100 per share. Once complete, the building will house the group’s offices, a driving school and a computer centre. It will rent out additional rooms.
The group also plans to start a motorbike insurance agency, housed in the same building, to generate extra cash and create jobs.
They have set a target of Sh30,000 minimum shares for members. Fifty of them have already hit and exceeded the target, either for the sacco or for shareholding of the petrol station business.
At first, the members agreed to contribute Sh400 monthly, paid in four weekly instalments of Sh100.
“We started saving in 2013 and installed the petrol station in 2015. We bought the required equipment in bits as we didn’t have enough capital,” said Mr Ndiritu. The equipment includes storage tanks and pumps, which they bought after identifying a suitable location for the business.
They operate from a commercial plot with a five-year lease, at a total of Sh300,000, which they have cleared. Mr Ndiritu says the market centre used to be deserted but the petrol station has given it a new lease of life.
“The place was almost neglected and abandoned. We have witnessed increased activity since the introduction of the petrol station. The land is also appreciating in value,” said Mr Ndiritu.The chairman said it has been a tough journey, recalling that after installing the storage tanks and pumps, their account was almost dry.
But the Youth Enterprise Fund came to their rescue, advancing them Sh400,000. They have almost repaid the money in full. He puts the value of all the investments at Sh4 million, but adds that they still have some debts to clear before they can embark on the office complex, which will be built on land valued at Sh1.8 million. He says the biggest advantage of the petrol station is that members and customers have access to quality fuel. He recalls how dishonest traders used to sell contaminated petrol that damaged automotive engines.
At Charagita Sacco, members qualify for a loan after three months of savings, unlike at many other saccos where members take five to six months of investing to qualify for loans. The county commissioner attributes the boda boda success story to discipline and focus.
He notes that motorbikes are important economic stimulants, rather than a menace, adding that what operators need is to be empowered to do proper business.County Youth, Sports, and Arts executive Dominic Murani says the biggest challenge facing motorbike operators is lack of entrepreneurship skills and access to funding.
“We made arrangements on how to train them on investment and entrepreneurship skills. The county government is in full support of the boda boda projects. We intend to promote saccos to engage in similar ventures throughout the county,” says Mr Murani.
The executive member adds that, like other youth, boda boda operators lack friendly finance institutions they can identify with.
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