How boda bodas rode on police crackdowns to build own estate

In 2009, police crackdowns on motorcycle taxi operators, known as boda bodas in local slang, became a rampant phenomenon in the then sprawling little settlement called Kitengela, nestled about four kilometres on the road to Kajiado from Athi River.

In the spirit of comradeship, the operators decided to start contributing money to pay the fines charged to set their arrested colleagues free.

These contributions went on for a while, and even after the crackdowns reduced, the group of 200 boda bodas decided they would continue to contribute money towards a collective cause.

That is how Kitemoto Sacco was formed, says chairman Alloys Mwai, 35.

The 200 members would contribute Sh100 per day, enabling the Sacco to bank Sh20,000 daily, Mwai says.

“After our contributions had grown to about Sh600,000, we formed Kitemoto Sacco with the help of the district officer in Isinya. We started loaning Sh80,000 to our members who used rented motorcycles, to buy their own, at an interest of Sh10,000, in 2010.

“The Sacco also paid for members’ driving or motorcycle riding courses and licences. Others would get loans to pay fees, rent and other expenses. Thus, all members of Kitemoto Sacco became self-reliant,” says Mwai.

“But, after a while, we noticed that most members were asking for loans to pay rent rather than to develop themselves financially, and some of the members floated the idea of investing in housing. Some members agreed with the idea but others rubbished it as a pyramid scheme that would fleece them of their savings, and so about 100 of them left.”

AFFORDABLE HOMES
Josephat Gathaga, the group’s secretary, chips in: “We were set on achieving our goals, and so even with 100 members leaving, we were determined to continue. We were inspired by the thought that our savings and what we paid in rent would be channelled towards paying for our very own beautiful yet affordable homes.”

Chairman Mwai says that they identified a five-acre piece of land in Kitengela for the project and started approaching banks to finance them.

“Most showed no interest in financing us, until we knocked on the doors of the National Cooperative Housing Union (Nachu), nine months after the idea was mooted.”

But Nachu told them that their group had to have a membership of at least 100 to qualify for a loan.

With the exodus of the 100 members earlier and about 50 others in the nine months, Kitemoto Sacco had a membership of far much less than the threshold Nachu required, and so they approached other small business owners such as vegetable vendors, charcoal sellers, jua kali artisans, salon owners, and construction workers to fill the deficit.

Apart from financing the project, Nachu also facilitated seminars, where, Mwai says, they learnt “how to develop strategic plans, keep records, and save”.

PROUD INVESTORS

On October 25, 2012, a small group of like-minded, ordinary Kenyans gathered at a farm in Kitengela to witness the ground-breaking ceremony of the five-acre piece of land that Kitemoto had bought for Sh3 million.

Earlier in the morning, a convoy of motorcycles had snaked its way through the streets of Kitengela, horns blaring and women ululating, on their way to the site.

A few days later, the sacco was already huffing and puffing on the road towards providing decent but affordable housing to the motorcyclists, mama mbogas, jua kali artisans, construction workers, tailors and other small business entrepreneurs, who constitute the biggest percentage of low-income earners in Kenya.

The home to these proud investors is 13 kilometres from Kitengela town, and just about 800 metres from the road to Kajiado.

Today, about 100 members of the sacco live comfortably in their little starter homes that come complete with a living room-cum bedroom, a kitchen, a bathroom, and some space at the back where owners are allowed to expand their homes to a maximum of three more rooms using their own means, says Mwai.

The sacco loan for the land and starter home on which the houses stand costs Sh450,000 for each member, on a flat interest rate of 14 per cent on a reducing balance for seven years.

“We have also been able to construct an additional 24 houses, which we have christened ‘commercial’ because they are for sale to non-members. The three-bedroom units are tiled, fitted with sinks and taps, have work tops, are painted and furnished with cabinets and wardrobes, and are selling at Sh4.7 million,” Mwai adds.

BARTER TRADE
Infrastructure in the estate is also developed, as it already has water, power and sewer lines factored in. They are also in the process of landscaping the estate.

“We are very happy with what we have achieved so far, as all our members have moved from the crammed informal settlements where we used to put up not only with limited space, but also with non-existent drainage, poorly built and lit houses and everything else that characterised such living everyday, to beautifully lined, well-lit estate homes of the same design and with all necessary utilities in place,” says secretary Gathaga, 28.

The mama mboga members now grow some of the vegetables they used to buy in the market on the open patch behind their units.

They also use the vegetables for barter trade when they need to get milk or other household commodities from other small business owners in and around Kitengela.

“Members’ lives have really improved through the Sacco’s activities, as apart from getting affordable loans, they are also more economically knowledgeable from the capacity building activities they benefit from,” adds Gathaga.

NEEDS ASSESSMENT
“We have to conduct a needs assessment first for the members interested in our developments to ascertain the financial status, as we are aware that there are those who may want to take advantage of this in order to buy on the cheap. We are also doing so to protect the rights of the low-income earners, and to rid the area of informal slum settlements,” Mwai says.

“Since we have the mother title and do not want members selling their houses after they have got the title for their parcel, we are going to issue share certificates as we work on modalities that will prevent members from selling their land.”

The drive for these young men is unwavering, as they are in the process of delivering homes for phase two on a 30-acre piece of land, for which they already have 60 members.

Some of the members who had left earlier on for fear of being fleeced have rejoined the group, and are among the 60 active contributors for the second phase.

“We are also conducting capacity building seminars with other motorcycle groups in Umoja, South B, Laikipia, Kiambu, Makueni, Westlands, and other groups like prison warders in Naivasha,” Mwai says.