Githurai riders pool savings to buy bikes, land through group financing

Bodaboda riders in Githurai are increasingly turning to welfare groups and cooperatives to access credit, acquire assets and reduce reliance on informal lenders.

The shift was evident during the flag-off of 12 new motorcycles and a seven-seater van acquired by members of Githurai 45 Kimwi Welfare, a sub-unit of the Githurai Bodaboda Welfare Association. 

The group has also begun investing in land as part of a broader push toward long-term financial stability.

The Sh5.4 million financing for the motorcycles and van was arranged through the Githurai branch of Equity Bank.

Sub-county chairman John Macharia said borrowing as a collective has made it easier for riders to qualify for loans while holding each other accountable.

“Today we have received 12 motorcycles and a van that will expand business opportunities and create employment. We repay these facilities as a group, which allows us to spread risk and make credit affordable,” he said, noting that many riders previously struggled to secure formal loans.

For James Githinji Kingori, a rider and beneficiary, joining the welfare group marked a turning point.

“For three years, I have been operating someone else’s motorbike, and that meant a significant portion of my daily income went directly to the owner,” he said. 

“Despite working long hours, what remained for my family and savings was very little.”

He said the structured financing arrangement now allows him to work toward owning his own motorcycle.

Kingori added that organised groups have also helped restore discipline within the sector by improving self-regulation and identifying rogue operators.

The Githurai Bodaboda Welfare Association brings together about 3,600 members across Githurai and Roysambu sub-counties. Members contribute Sh100 daily to build a savings pool used to guarantee loans and support investments.

Beyond motorcycles, the association has expanded into property through an investment arm known as Githurai Limited Company. The company, comprising 50 members, has acquired two parcels of land valued at Sh9 million with additional financing support.

Meanwhile, Githurai 45 Transport Cooperative Society Sacco, which has 300 members, has secured land worth Sh6 million with plans to develop housing units.

Officials from the bank said lending to organised groups reduces default risk and improves repayment discipline, adding that financial literacy training is offered before loans are issued.

The model reflects a broader trend among informal sector workers using collective savings and cooperative structures to transition from daily income earners to asset owners.