The Kenya Commercial Bank on Thursday launched an ambitious loan programme meant to benefit bodaboda and tuktuk operators within Thika Town of Kiambu County.
Area Branch manager Rukunga Bundi said that the bank will partner with bodaboda operators in the area and offer them loans to buy new motorbikes and tuktuks in an effort to help the upcoming Micro-entrepreneurs.
He said that the bank has partnered with 103 Kiandutu slum-based bodaboda operators, who have formed an association and were going to loan them between 450,000 to 520,000 each to upgrade their tools of trade payable within 24 months.
Rukanga further explained that the Bank has also partnered with an insurance company to ensure that all the new tuktuks and motorbikes bought would be insured and their owners given a basic training on how to manage their finances.
Thika town Kiandutu Youth Association treasurer Joseph Mwangi explained that the bank was going to group them into three groups of 20 members each, who would guarantee each other for easier management of the loan.
He revealed that the first group of operators have already been taken through the training and will soon start benefiting from the loan.
Mwangi pointed out that most of the youth were apprehensive and are not very eager to take the loan for fear of defaulting, but thanked KCB officers who have been spending time with the operators and educating them on basic financial management.