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Boda boda Sacco makes Sh1 million profit, pays out dividend

NEWS
By FILEX MURIITHI | January 13th 2020
Kabati Flyover Operators Sacco vice chairman George Mungai. The Sacco is now loaning tens of millions to members. PHOTO: WANGECHI WAITHERA.

A boda boda operators’ Sacco that was formed four years ago in Murang’a county has become a source of inspiration after transforming the lives of its members.

Known as Kabati Flyover Operators Sacco, it has a membership of 87 members and has enabled the youths to improve their livelihoods and earnings from their savings.

The Sacco came into the limelight after it made profits amounting to Sh1.1million for the year 2019.

Individual members took home dividends of not less than Sh3,500 while others earned Sh8,000 depending with one’s contributions.

The members save at least Sh500 every week, totaling to Sh2 million every month.

From the contributions, members are able to access cheap loans that have enabled them to educate their children and support their families.

In return, the Sacco makes profits from the interest charged on the loans.

It issued loans amounting to Sh5.6 million to its members last year.

According to vice chairman George Mungai Njoroge, the Sacco has also engaged in other income generating activities that complement their profits.

It has invested in four boda bodas and tuk tuks and has also procured a two acres parcel of land valued at Sh1.2 million.

The vice chairman said the Sacco has also established a welfare programme that caters for members who fall sick or lose their lives.

“This sector has numerous challenges so we had to establish the programme to support those who get ill and help them resume work as soon as possible,” he said.

Each member contributes Sh200 per month to the programme that also covers members’ immediate families.

The year 2019, Mungai said, was so far the most successful year for the Sacco as it has been able to progress and increase its profits.

Mungai said it is time for youths to understand that operating a boda boda is work like any other and should be taken with the seriousness it deserves.

“Our Sacco is an example that boda boda operators can prosper just like in any other profession if they are able to organize their earnings,” he said.

He noted that many of his members have been able to expand their finances by establishing businesses for their spouses.

Real empowerment

Others have been able to construct their own homes and procure tuktuks through loans from the Sacco.

Emmanuel Wanyoike, a member, has now upgraded from a boda boda to a tuktuk.

Wanyoike said he joined the sector four years ago and immediately joined the sacco.

After saving enough money through the Sacco, he acquired a loan that helped him to buy a tuk tuk which he said gives him more earnings.

He said joining a Sacco encourages one to save their earnings while providing an opportunity to access cheap loans.

Kabati business community chairperson Kamau Kang’e on his part said the area is now safe after the operators consolidated themselves into a Sacco.

The Sacco, he said, is able to control its members through its internal regulations which has worked for the benefit of the community.

It also works closely with security agents which helps to flush out criminal elements.

“The unity of the operators has made the area unconducive for criminals as they are easily flushed out,” he said.

On his part, Kandara OCPD Paul Wambugu said it is a rare occurrence for youths and especially boda boda operators to come together in such a platform to empower each other.

“We are so proud of them because they have demonstrated that it is possible for youths to set goals and accomplish them,” he said.

“They seem to see very far. I attended their annual general meeting in 2018 and they had vision to ensure all members had licenses and procure tuk tuks, and they have done all that and managed to increase their profits,” he added.

He asked the youths to reach out to more operators and encourage them to join saccos instead of operating individually.

“The ones that operate solely are the ones that give us headaches in terms of security,” the OCPD said.

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