Mombasa county’s Sh200m revolving fund to be rolled out next month

Boda boda riders and tuk-tuk operators in Mombasa will soon be able to boost their businesses after the county government finally approved the long-awaited County Revolving Fund.

The board that will decide on the rules and regulations of the Sh200-million revolving fund is due to be sworn in on Monday.

Mombasa County Cooperative Development Executive Ibrahim Khamis on Friday said the board will come up with criteria for selection and eligibility rules.

The revolving fund is expected to be rolled out from next month, when the new financial year starts.

It will have zero interest and is expected to help young people, mostly boda boda and tuk-tuk operators, start up or boost their businesses.

Young people will be able to borrow interest-free loans and repay so that other young people also benefit from the same.

“After many years, the county assembly finally passed the bill and has now been signed into law. But I know people will say this is because the campaign period is near," Khamis said.

He spoke at Jubilee Hall where interest-free micro-finance platform Ziya launched its new product, the zero-interest asset financing for boda boda and tuk-tuk operators.

The CEC said the county will ensure Ziya has a conducive environment to operate.

“That is what we are here for. We are calling on other investors to come and invest in Mombasa where, just like in Africa, the population is mostly made up of youth,” he said.

Hussein said boda boda and tuk-tuk sectors have employed tens of thousands in Mombasa with the county government also sponsoring thousands to get licenses through driving school.

Ziya representative Comack Maloba said there have been overwhelming requests from boda boda and tuktuk operators to help them get loans.

Maloba said they currently have 11,000 members in their microloan products, majority of whom are riders.

“That is why we have opted to work with saccos and various manufacturers of tuktuks and boda bodas to see how we can work together to create an ecosystem that allows the members to work freely and eventually own the products that we launch,” he said.

He said they are not a predatory organisation that give out loans that they know would be impossible to repay so that they eventually repossess their products.

“We know the community we serve because we live among them. So we are helping them step towards freedom,” Maloba said.

He said the catch is the riders and operators have to be within a sacco because that is the unit they operate with.

“Your tuk-tuk or boda boda will be given to you through the sacco and you will repay still through the sacco,” Maloba said.

He said Ziya is bridging the gap between financing and one becoming financially free.

Ziya chief product officer Linda Ng’ondu said there is nowhere else in Africa that one will find a product that is both zero-interest and zero-markup.

“It is a very innovative product that we have come up with which aims to empower the society, especially boda boda and tuktuk operators, who are our brothers, sisters, fathers and neighbours,” Ng’ondu said.

Ali Bin Ali, a beneficiary of a tuk-tuk under Ziya’s asset financing product, said he was given a tuk-tuk more than year ago.

“I was given the tuk-tuk for free and I have been paying small amounts to the company for almost two years now. I am almost finishing the repayment,” Ali said.

He said he pays Ziya Sh1,000 per day for six days a week.

Sundays are left to him and he takes all the money he gets.

On holidays, he pays and Sh500 to Ziya.

“I also get loans from them which I give to fellow members. It is like I manage the loan for them and I see it as beneficial. We are doing well,” he said 

INSTANT ANALYSIS:

The Mombasa County Revolving Fund is an empowerment program designed to provide zero interest business loans and technical support to Micro and Small Enterprises. Managed by the county government, it aims to boost economic growth for local traders, young people and persons with disabilities.