Blue-collar workers in Kenya will now access earned wages before their payday following a new partnership between technology firms Seamless HR and the Bill and Melinda Gates Foundation.
Through the partnership, SeamlessHR has introduced a new platform dubbed Barizi that allows employees to access their salaries before payday and manage financial emergencies without paperwork and at a lower cost.
Additionally, the platform helps casual workers build their credit history which enables them to access sizeable loans with longer repayment periods.
Bidco Africa Chair Vimal Shah said the reality on the ground is that in Kenya, there are over a million people earning less than Sh30, 000 per month.
“This results in many blue-collar workers having little or no access to credit, even though they are the ones who keep the wheels moving in organisations and factories,” Shah said.
Shah recommended organisations to automate their HR administrative tasks for better efficiency of systems.
“Remove the hassle of manual HR administration and replace it with digital solutions which improve the harmony between employer and employee, hence increasing productivity,” Shah added.
In Kenya, blue-collar workers are paid between Sh100 and Sh450 per day for jobs ranging from cleaning, picking and packaging, washing, repairing, and packaging dry cells.
Most of these workers are paid at the end of the month and do not enjoy additional benefits from their employers.
Bill and Melinda Gates Foundation representative Will Kaplan said his organization believe in financial inclusion for workers in the blue-collar sector.
“We also aim to break cycles of poverty, especially for those who have to use physical assets when transacting using cash which can get lost or stolen,” Kaplan said.
Kaplan said their success is if the blue-collar workers can get access to affordable credit to help households to smooth out consumption and become more resilient to economic shocks.
Kenya Association of Manufactures representative Winnie Ngumi said out of 18 million workforce in Kenya, informal workers comprise over 80 per cent while only 2 million make up formal employment.
“Most blue-collar workers tend to receive fewer benefits from employers and this explains their financial insecurity. They do not have access to emergency funds, and thus tend to turn to loan shacks and predatory mobile lending apps, sinking into a cycle of debts,” Ngumi said.
The Economic Survey of 2023 shows that in the 10 years between 2012 and 2022, the number of casual jobs have gone up by 134 percent from 220,700 to 517,000 compared to a 29 percent rise in the number of regular permanent jobs to 2.4 million.
SeamlessHR CEO and Co-Founder Emmanuel Okeleji said the Barizi solution will improve the financial state of wellbeing of blue-collar sector.
“They do not have to worry about emergency money. This will in turn positively impact their drive and motivation and in the end improve their productivity,” Okeleji said.
The initiative is aimed at improving the overall financial well-being of the blue-collar workers whose needs have been largely overlooked and creating a long-lasting impact on this segment of Africa’s talent.
Okeleji said the platform is built on the latest cloud technology to ensure casual workers get instant financial wellness. The system can automatically calculate how long one has worked and one can access their salary up to the day they have worked.
“It's not a loan or a credit facility that uses employment as collateral. Barizi will give employees access to the wages they have earned for the days they have worked within the month. In addition, we have also built a comprehensive technology tool to track time and attendance. With the ability to access their hard-earned wages in real time, casual workers can transform their aspirations into realities and enable them to have a better life,” Okeleji added.
In the Kenyan market, the platform is backed by PesaLink and Diamond Trust Bank (DTB).
The firm has also partnered with the Kenya Association of Manufacturers, representing top casual worker employers.