Boda Boda (motorcycle) Business: an opportunity for investment clubs in zambia to create jobs, empower youths, and earn high returns on their investment

Motorcycles and bicycles in Kenya can be traced back to the colonial era, although

they were reserved for government officials and the rich. However, usage of bicycles

as a mode of transportation can be traced on a border town of Busia between Uganda

and Kenya(Manyara, 2013). This mode of transportation later spread to other urban

and rural areas in both countries, but the fastest adoption of this mode of

transportation occurred in Uganda than in Kenya. Initially they were used to

smuggle goods across the Kenyan-Ugandan border but in time they transformed into

an informal „for hire‟ type of transport service catering largely to passenger

needs(Luchidio & Gatebe 2013). From this period Bodaboda mode of transport has

been embraced Kenya, providing taxi services both in rural and urban areas. In a

study byMwobobia(2013),Bodaboda have provided transport for goods at house hold 

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level and also by small scale traders who have gained greater and flexible mobility

and enhance their incomes through cheap and easy transportation of goods. In recent

years in Kenya, there has been a upsurge of motorcycle Bodaboda business which is

also a phenomenal the government has to deal with in terms of regulation and

control.The high influx of motorcycle taxi in Kenya was a result of tax waiver on

motorcycle importation and spares by the government in 2008. This was meant to

promote job creation in the transport sector to the youth (Mutiso& Behrens, 2011).

According to Kenya National Bureau of Statistics KNBS (2010), the zero rating on

taxes and its gazzetement in 2008, the number of imported motorbike increased from

approximately 3800 motorcycles in 2005 to approximate 1 million by 2010. WHO

(2005) report also indicated that, between 2005 and 2010 motorcycle registrations

increased by 40% in most African countries. The WHO report further indicated that

in East Africa alone made up of the 70% of all motorcycle registered in Africa and

their registration was double that of motorcars. Odero (2011)the Kenyan bodaboda

transport services are a Ugandan innovation which started in 1960‟s as people

crossing the border between Kenya and Uganda used bicycles to move goods

(Odero, 2011). However in early 1990‟s the bicycle based carriers were

complemented by light motorcycles, thus making the movement fast and convenient

in most Kenyan towns (Otieno, 2012). According Kenya national bureau of statistics

(2012), 80% of youth are Bodaboda operators.

Youth empowerment is a key to every national development. Youth empowerment

programmes provides the skills, knowledge and tools required for effective

development. In countries like Ethiopia, Ghana and Ireland, the local authorities

empower youth right from the local council levels for enabling them to participate in

all works and tackle issues affecting them(Mutiso& Behrens, 2011). Some African

countries such as Ghana and Nigeria, obligatory national service schemes for young

people exist in various forms to expose youth to public and work experiences (Guest,

2007).The provision of both academic talent based training and empowerment clubs

is a way of strengthening youth empowerment programs in the country to facilitate

youth to run their own enterprises (Nkede, 2012)

1.1.2 Self-employment and Youth Empowerment

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Youth empowerment “is based on the belief that young people are the best resource

for promoting development and they are agents of change in meeting their own

challenges and solving their own problems (MSYA, 2007). For young people to be

empowered, certain processes and mechanisms have to be instituted. In Kenya,

Bodaboda business is one the fastest growing industry which is providing much of

informal self-employment among the youth. The sector is the best income generating

activity currently among youth and it generates a lot of opportunities for many youth

who are unemployed annually in both rural and urban settings in Kenya as observed

by (Odero, 2011).

Through Bodabodaenterprise many youth have been able to contribute both social

and economic development of the country immensely.Nevertheless, in Kenya youth

constitute the largest portion of the population youth with majority having little

education. Due to their education background and lack of entrepreneurship

knowledge majority have fallen victims of exploitation since the mode of

employment came when the government was not prepared and had no policy

formulation for it, thus the famous “kazikwavijana, pesakwawazee” slogan became.

Majority of youth in Bodaboda businesshave been filling short changed due to

inadequate empowerment programs to meet their obligation in a sustainable way as

observed by (Manyara, 2013). Although young Bodaboda operators in Chuka

Municipality forms the largest work force , there is little focus on their

empowerment a gap which this study intends to fill, by establishing weather

Bodaboda operators business in Chuka have positively influenced their selfempowerment and self-sustainment.

1.1.3 Savings Mobilization

As observed by Mutiso & Behrens (2011), youth savings mobilization through

locally or owned Sacco‟s is a voluntary venture of people with common or diverse

background for the purpose of solving their common problems through self-help and

mutual understanding to get help through Sacco. Savings mobilization has been

embraced by many youths in Kenya throughBodabodaSacco‟salthough Bodaboda

Sacco‟s are not much different from each other.The Bodaboda Sacco‟s as

cooperatives entities are also more legalized group in comparison to Self-help

groups which in most cases are not registered entities and in some quarters they are 

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regarded as non-profit organizations. However, their strategy is much similar to

those of other community based organization on savings mobilization. Through

these youth Sacco‟s members act as the guarantors and they do not request for

collaterals like formal banks making them the best choice for Bodaboda operators.

The Bodaboda based group approach not only enables the youth to accumulate

capital by way of small savings but also helps them to get access to formal credit

facilities (Mwobobia, 2013). As observed by Masanga (2010),Bodaboda Sacco‟s

approach provides a joint liability which enables the youth to counter challenges of

collateral security in accessing credits for youth empowerment. While majority of

youth form some of the largest Sacco‟sin Chuka Municipality, there is little known

on their savings mobilization a gap which this study intends to fill.

1.1.4Sacco’s Formation

Sacco‟s formation provide an important bridge of economic empowerment for less

privileged youth in Bodaboda business who otherwise would hardly be able to attain

reasonable levels of economic security. The proximity of the Sacco‟s societies to

members, existence of strong user networks and community relationships present

opportunities to drive economic development among the cooperating communities.

Sacco‟s formation create employment directly, indirectly and through spill over

effects (Manyara (2013). Direct employment refers to employment opportunities

created by Bodaboda Sacco‟s enterprises while indirect employment arises through

members‟ income generating activities that are initiated through the support of

Sacco‟s (Otieno, 2012). Another contribution associated with Sacco‟s is the

reduction of poverty,by open up opportunities for the less privileged people to lift

themselves out of poverty (Odero, 2011). Bodaboda Sacco‟s enterprises enhance and

support members to start businesses and engage in income generating activities such

as subsistence and cash crop farming. The income generated from Bodaboda Sacco‟s

activities helps members to build shelter, feed and clothe themselves, educate their

children, and cater for their healthcare expenses. Sacco‟s also facilitate supply of

inputs and ease members‟ access to markets. Moreover, they offer members a voice

to lobby for fair trade, and benign legal and policy environment for co-operative

enterprises. However, regardless of majority of youth forming Saccos in Chuka 

Municipality, there is little known on the benefits a gap which this study will intends

to fill.