NAIROBI, Kenya, Oct 23 – Nabo Capital, a subsidiary of Centum Investment Company Plc, has launched a collective scheme that will provide up to 1.4 million boda boda riders with a tech-enabled savings and investments platform.
The platform, launched today at Nairobi’s Pumwani Social Hall in an event presided by President Uhuru Kenyatta, will see the boda riders build a nest egg by saving Sh50 per day.
Nabo Capital will manage the funds in the Collective Investment Scheme (CIS) for the boda boda riders, under the strict regulations of the Capital Markets Authority (CMA).
The scheme will begin by enrolling 100 riders from each of the 47 counties, gradually building up to cover the 1.4 million boda boda riders countrywide.
“This is about empowering the youths and giving them a chance to build stability in their lives by scaling up their businesses to the highest levels attainable,” said the Centum Group CEO James Mworia.
The riders will make the daily contributions via mobile money though a USSD number or mobile app and stand to earn interest at a rate higher than bank deposits and the 364-day Treasury Bill.
“The plan is to develop and progress them in life, to move from riding a boda boda, to owning one, to running a fleet,” said the Nabo Capital Managing Director, Pius Muchiri.
The Boda Boda fund shall be the first sub-fund under the umbrella collective investment scheme dubbed Uhuru Sovereign Trust Fund that targets the youth and Kenyans working in the informal sector.
The platform, intended to promote financial inclusion and financial freedom, has been developed by Centum through its subsidiary companies including Nabo Capital which will be the fund manager, Sidian Bank which will be the receiving bank and Tribus TSG which developed the mobile application.