Financial services provider Zamara Group has entered into a partnership with United Boda Boda Association of Kenya aimed at bringing financial security and a future with dignity for close to 2 million Kenyans within the Boda Boda sector through its Fahari Retirement Plan.
The partnership will kick off with rollout of pilot programs on retirement saving, pensions and insurance acceptance within the sector, training and subsequent mass rollout to facilitate adoption. Fahari ya Boda is tailored to the specific needs of the sector with other insurance solutions such as Last Expense cover embedded within the plan.
“Bringing Boda Boda Association on board is a key component of us as Zamara to drive financial inclusion within all sectors of our economy. We understand the risks that come with not having a savings pot for the future and as such shall offer Boda Boda operators an efficient means to plan and save for their retirement,” said Zamara Group Chief Executive Officer Sundeep Raichura.
“By addressing the issue of savings and financial literacy, we are empowered to create a savings culture within the sector, grow member savings and increase financial security and be able to support our families and the community during old age,” said Kimani Wanduthi, Chairman, United Boda Boda Association.
Boda boda has become one of the most popular modes of transport both in the rural and urban areas, moving people and goods from one place to another. The sector has grown in leaps and bounds in the last decade providing employment opportunities, a source of livelihood and economic empowerment, especially for the youth. The sector is a significant contributor to the economy and plays an important role in the transport sector as an alternative, or complementary, mode of transport.
“The industry is thought to support 5.2 million Kenyans, directly or indirectly, accounting for 11 per cent of the population and assuming a rider makes a modest Ksh700 per day, then the sector generates close to Ksh1 billion per day and close to Ksh357 billion per year. The vibrancy, energy, passion, hard work, creativity and entrepreneurship of the boda boda rider is a true testimony to the resilience of our economy and our country,” Mr Raichura added
Each of the close to 2 million members can open their secure Fahari ya Boda Boda pensions and insurance account linked to their national ID – all completely automated, paperless whether using a smart phone or a simple feature phone on USSD or on WhatsApp.
“Any amount, any time, any channel, view statement, make ad hoc contributions, no penalties, daily interest, access if need be. Fahari ya Boda Boda allows the sector members to save and build up a savings pot of money for your future financial needs. The more you save into your account, the more it grows. The accumulated savings are returned to you as a lump sum or a monthly pension at the point of exit,” the company said in a statement.
Zamara in November 2021 inked a partnership with the national Federation of Jua Kali Associations to drive financial inclusion with a promise of bring together the informal sector and create a savings culture in the country.