The Zamara Group and the United Boda boda Association (UBA) have entered into a partnership aimed at providing financial retirement security as well as other insurance solutions to the Boda boda riders in Kenya.
Speaking at Sarova Stanley Hotel in Nairobi Thursday, Zamara Group CEO Sundeep Raichura stated that the Boda boda sector was an important contributor to the country’s economy as the earnings generated is estimated to be between Sh357 and Sh360 billion per year.
However, Raichura mentioned that though there are about 450,000 new registered Boda boda riders yearly, about 200,000 of them drop-out due to various reasons such as old age, disability and accident.
“There is therefore the need for riders to save for their own future and ensure they have adequate protection against all the risks they might face in life or work,” he added.
The CEO explained that anyone can open a secure savings insurance and pension account which will be linked to one’s national Identification card by registering using a mobile phone or visiting the “Fahari ya Bodaboda” website.
“If you have a track record to show that you have been putting aside some money for a period of six months, it forms the basis of you getting a loan at an affordable rate,” he added.
Raichura continued that Zamara Group was looking at solutions that are simple, affordable, and accessible and those that add value to the members.
This, he added, is the start of a journey to enable a very important sector of the economy to be empowered and take charge of their own financial stability.
The CEO cited that the partnership will be transformational to the country and that they are working with UBA to add resolutions to personal accident cover, disability cover, saving for housing as well as offering affordable credit solutions.
Echoing Raichura’s statements, UBA Organizing Secretary Aggrey Vunyoli reiterated that they are partnering with the Zamara Group to be able to create a statement that will enable the riders to access cheaper finance at a lower rate.
Vunyoli added that they had an idea and were looking for someone to partner with in terms of retirement benefits and so they decided to partner with Zamara Group to craft a product which will help the boda boda operators.
By Mary Wangari and Manu Mumba
