In order to benefit from the immense opportunities for business growth afforded to such entities, bodaboda riders in Turkana County have been asked to register their associations as cooperative societies.
Elizabeth Loote, the county executive for trade, enterprise development, cooperatives, youth, and gender affairs, outlined the financial and economic benefits of joining SACCOs during a workshop held in Lodwar.
The CEC cited access to enhanced credit services in terms of bigger loans and manageable repayment installment schedules from commercial banks and Government backed schemes.
Mark Amiyo, the Ag. Chief Officer, informed the bodaboda leaders that there had been previous talks with the governor about how to elevate the county’s boda boda riders, mama mboga and other MSMEs to improve their financial status.
For easy access to county cooperative loans,he urged operatives to register with cooperative Saccos.
In an effort to get Bodaboda riders to join existing Saccos or establish new ones, Chief Amiyo stated that similar interactions with them will continue.
He added that the County was prepared to support the project as a way to encourage compliance with NTSA Act 330 of 2012.
What economic role do they play?
According to a new study, the boda boda sector directly employs one million people who earn Sh1 billion every day as riders.
A study of the sector by listed firm Car & General (C&G), estimates that each rider makes an average of Sh1,000 per day from an average of 15 rides, translating to a daily income of Sh1 billion or Sh365 billion annually for the one million of them.
Treasury is estimated to be collecting roughly Ksh60 billion (about US$525 million) yearly in fuel taxes from boda bodas, which consume an average of Sh300 worth of petrol each in a day.
This translates to Sh300 million worth of fuel each day, out of which about Sh163 million goes to the government in form of taxes, levies and other charges.