MOMBASA, Kenya – Thousands of boda boda riders and tuk-tuk operators in Mombasa are set to benefit from a new zero-interest asset financing programme launched by microfinance platform Ziya, in a move aimed at expanding business ownership and improving livelihoods among informal sector workers.
The financing model allows registered members to acquire income-generating assets such as motorcycles and tuk-tuks without interest or hidden mark-ups, with repayments made through their savings and credit cooperative societies (Saccos).
Speaking during the launch at Jubilee Hall in Mombasa, Ziya representative Comack Maloba said the company developed the product after receiving overwhelming demand from riders seeking affordable financing.
“We currently have over 11,000 members using our microloan products, the majority of whom are boda boda riders. That is why we have partnered with Saccos and manufacturers of boda bodas and tuk-tuks to create an ecosystem where members can access these assets and eventually own them,” Maloba said.
He said the company deliberately avoids lending models that burden borrowers with unsustainable debt.
“We are not a predatory organisation that gives loans knowing customers will struggle to repay so that we can repossess their assets. We understand the communities we serve because we live among them. Our goal is to help them take a step towards financial freedom,” he said.
Under the programme, riders must belong to registered Saccos, which will receive and manage the financed assets while facilitating repayments on behalf of members.
“Your boda boda or tuk-tuk will be issued through the Sacco, and repayments will equally be channelled through the Sacco structure,” Maloba explained.
Ziya Chief Product Officer Linda Ng’ondu described the financing model as one of the first of its kind on the continent.
“There is nowhere else in Africa where you will find a financing product that is both zero-interest and zero-mark-up. It is an innovative solution designed to empower boda boda and tuk-tuk operators, who are our brothers, sisters, fathers and neighbours,” she said.
One of the beneficiaries, Ali Bin Ali, said the programme had transformed his livelihood after he acquired a tuk-tuk through Ziya more than a year ago.
“I have been repaying gradually for almost two years and I am now close to completing my payments. I pay Sh1,000 per day for six days a week, while Sundays are entirely mine. On public holidays I only pay Sh500,” he said.
Ali added that besides earning a stable income, he also accesses microloans through Ziya, enabling him to support fellow Sacco members.
The launch comes as the Mombasa County Government prepares to operationalise its Sh200 million County Revolving Fund, another zero-interest financing initiative targeting youth, boda boda riders, tuk-tuk operators, persons with disabilities and micro-enterprises.
County Cooperative Development Executive Committee Member Ibrahim Khamis “Babangida” said the board overseeing the revolving fund was expected to be sworn in on Monday before rolling out the programme in the new financial year.
He welcomed Ziya’s investment, saying the county would provide a supportive environment for businesses offering innovative financial solutions.
“That is what we are here for. We are calling on more investors to come to Mombasa because, just like the rest of Africa, our population is largely made up of young people,” Khamis said.
He added that the county has continued supporting the boda boda and tuk-tuk sector, including sponsoring thousands of young people to acquire driving licences through approved driving schools.
The County Revolving Fund will provide interest-free business loans and technical support to micro and small enterprises as part of efforts to stimulate entrepreneurship, create employment and strengthen local economic growth.
