Bodaboda riders have been in the highlights for all the bad reasons including robbing and killing passengers. A group of bodaboda riders in Nanyuki have changed the narrative by forming a booming Saving and Credit Cooperative (Sacco) that has elevated young people’s living standards. Nanyuki Bodaboda Sacco (NABOSA Sacco) vision bearer Patrick Maina explains how they did it.
When did the idea to form a Sacco came?
Unfortunately, the idea to form a Sacco was born during a funeral of one of our riders who was shot dead by robbers. We were determined to change the mindset of the public about bodaboda riders because it was really painful that thugs hid amongst us and took advantage to rob people, businesses and also killing people.
So, what did you do?
We abruptly organised a brief meeting after the funeral and we resolved to come together as a group of about 500 riders and agreed that we will fish out the bad elements in this sector because there was a lot of police harassment following robbery cases.
Initially, we named our group as Nanyuki Motorcycle Umbrella Body (NAMUBO) as a self-help group to unite us. The group went on well from 2009 until 2011 when we decided that we should have a saving strategy to elevate our businesses.
We simply did not have any investment but we later approached officers from the cooperatives department to guide us on how we could register NABOSA Sacco.
When was NABOSA formed?
The then Member of Parliament for Laikipia East Mwangi Kiunjuri (current Cabinet Secretary for Agriculture) and also the cooperative officers financed and guided us on registration of a cooperative and we changed from NAMUBO to Nanyuki Bodaboda Sacco (NABOSA). We were educated on regular saving pattern for investments.
We kicked off with 300 members in July 2011 but we had a challenge on how to manage the SACCO and to monitor savings such that, close to three years, we had managed Sh80,000 saving out of which Sh40,000 belonged to one person.
What was the saving formula?
By 2014, we had a strong and cohesive group although we were not financially empowered. We developed a constant saving formula of Sh50 per day.
In the same year, the county government financed a trip for us to visit a similar group in Kitengela that had made big steps in financial empowerment to the extent of establishing a multimillion real estate in Kitengela.
We benchmarked with KITEMOTO group and their success story really challenged us.
On return to Laikipia the saving formula was emphasized and this time we were more committed towards investing.
What informed the decision on the minimum saving amount?
Members of NABOSA Sacco are low-income earners and we thought Sh50 per day was reasonable to ensure we accommodated everyone who wished to join the Sacco.
The trend has been maintained to date and every member is expected to have saved Sh350 per week where we deduct Sh50 from every week’s saving for each member to cater for office operations.
What are your major challenges?
Massive withdrawals by impatient members when investment projects delayed to take off.
Conflict of interests among officials and political influences have also been key hurdles affecting NABOSA Sacco.
There is also the concentration of motorcycles and hence the business has gone down and some of us have had to diversify.
Tell me about the NABOSA Sacco housing project in Nanyuki?
Interesting. From our little savings, we have built a Sh95 million real estate where 60 out of the 120 members who enrolled into the project are homeowners.
In the first phase, 60 members have already occupied the houses and the second phase for the other 60 units is set to kick off this year.
At what point did you agree to build houses?
After the benchmarking trip to Kitengela, we had regular meetings and training sessions led by officers from cooperative department and they kept encouraging us that we could do a similar project like that in Kitengela.
When the intervention was clear that we wanted to build houses we approached the National Co-operative Housing Union (Nachu) who agreed to finance us build the houses and pay loans in low interest rates.
What inspired the name ‘The City Between Mountains’?
We named it so because you can clearly see the snow-capped Mount Kenya on one side and Aberdare hills on the other side.
How was the financing of the housing project done?
In the entire project, NACHU contributes 80 per cent of the entire construct costs inclusive of the land.
NABOSA Sacco was tasked to look for a land and the union bought it at a cost of Sh7 million then kicked off the construction.
We had agreed that every member had to contribute at least Sh15, 000 for purchase of the land and by August 2015, 120 members had already hit a target of Sh1.4M as minimum required by NACHU to finance the project.
The houses were incrementally built where we started with starters (bedsitters) and one-bedroom units but individual members can expand their units to three-bedroomed houses.
What is the loan repayment formula for the housing project?
Members are expected to pay loan not exceeding Sh800,000 inclusive of the land. The loan is payable in five years.
Would you say the bodaboda Sacco is a success?
Yes. We have elevated ourselves from poverty and most of us have multiple businesses because we give loans to the members. We have also changed the negative perception associated with bodaboda sector and even extending hand to other areas.
In some interior such as Mutara, Doldol among others we have encouraged the youth to join us. We went out of our way and through a partnership with a driving school in Nanyuki, we managed to have instructors in the areas train the local young men.
We are ready to give them loans to buy their own motorcycles.
Have you won any award?
Yes. Last year, NACHU awarded us a trophy for being the best cooperative in saving for housing.
What are the future plans for NABOSA Sacco?
Going forward we intend to also operate as an insurance agency so that we can insure our members at low costs. We also plan to establish a driving school and increase the membership to 700.
What is your advice to young people?
My advice is that if you can perceive it you can achieve it. You only need to be focused to succeed in any project you embark on. The jobless youth should also understand that they do not have to rely on office jobs because they can employ themselves.
Your parting shot?
If a risk is worth taking, go ahead and make your dreams come true!