Zamara Group on Thursday said it has expanded its pension plan Fahari Retirement with a new product that will allow Bodaboda operators to save.
The product is being rolled out in partnership with the United Bodaboda Association of Kenya.
“Bringing Boda Boda Association on board is a key component to us as Zamara to drive financial inclusion within all sectors of our economy,” said Zamara Group Chief Executive Officer, Sundeep Raichura.
“Fahari Ya Boda Boda allows you to save and build up a savings pot of money for your future financial needs. The accumulated savings are returned to you as a lump sum or monthly pension at the point of exit,” he noted.
Fahari Boda Boda Plan allows the over 2 million motorcycle operators to save as low as KSh20 per day.
The product has embedded an insurance funeral cover of KSh25,000.
He also disclosed that in future, bodaboda operators could use their financial records to secure credit facilities from financial institutions if ongoing discussions are successful with the relevant bodies.
“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,” United Boda Boda association chairman, Kimani Wanduthi said.
According to Zamara, annually, close to 400,000 new riders join the sector, but around 200,000 also stop working due to old age, disability, accidents among other life cycle risks to which are solutions.
In addition, the sector accounts for 11 per cent of the population with an estimated revenue of one billion daily and Ksh 357 billion annually assuming each rider makes Ksh 700 daily.
“But almost 100 per cent of these young, economically active bodaboda riders are excluded from our formal pensions savings and insurance systems,” Raichura said.
Zamara plans to increase its customers to over 600,000 this year and five million in five years.
According to the Economic Survey 2021, the number of newly registered motorcycles increased by 16.2 per cent from 217,425 in 2019 to 252,601 in 2020.
