How boda group pools funds to fight poverty

At a designated location on Martin Road in Kyaliwajjala, in Wakiso District, near Kampala, is a boda boda stage used by 24 riders.

Every morning, they dock at the stage with utmost anticipation and eagerness of having a successful work day ahead.

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On occasions when days are slow, the riders opt to engage in all sorts of conversations discussing a wide range of topics, including those that touch on their lives.

And in one of such casual discussions that transpired back in 2019, Mr Alex Kato, shared a fascinating idea with his colleagues.

“Why don’t we start a savings group?” he suggested.

He reasoned this would be a great idea instead of wasting away money in bars, gambling and on women.

Those who agreed to the idea were five and with this number, Mr Kato opened up a savings group with members agreeing on the name, ‘Tukole Savings group’.

“One of the agreements we had was ensuring that no matter what happens, each member had to contribute Shs10,000 on a daily basis to the savings scheme. Then, at the end of the week, Saturday, we would give the total amount collected [Shs360,000] to one member, and, in another week, it would be another person’s turn,” Mr Kato adds.

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As much as the money would be given to members to use for doing personal things, Mr Kato told Monitor yesterday that emphasis was always made for members to utilise it for investments.

Over time, the number of members grew from six to 13. The amount of contribution also increased. Members now contributed Shs20,000 on a daily basis towards the scheme.

“We followed the same system where at the end of the week, Saturday [precisely], we would give the total collection [Shs1,560,000] to one member and another would get during their turn the following week,” Mr Kato said.

Currently, the number of members stands at 24. Each now contributes Shs30,000 on a daily basis towards the saving scheme.

“Every after 13 days, one member takes home Shs9, 360,000,” Kato said, adding, “….and the cycle is repeated after the same period of days. Another lucky member will take the same amount home.”

Benefits

Members have invested the money in different projects, with many opting to purchase assets, mostly land.

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The group regularly meets to hold discussions about their scheme. Occasionally during such meetings, elections are held and a member is designated to serve in a specific role, including as treasurer and secretary.

Mr Tony Ssekikome, who has previously served as treasurer, said the elections are fairly held and by the time one gets elected into a specific position, it means they are most suitable for the role.

Mr Naboth Ahimbisibwe is a new member to the group after joining in January. July 15 will be his turn to receive the Shs9.3 million, money he partly wants to inject into purchasing another motorcycle.

Members are expected to abide by the group’s guidelines and the event any is broken, a member either faces disciplinary action or dismissal.

“For instance, if someone missed out on making a deposit in two days, they are expected to eventually credit Shs60,000 and the expected Shs30, 000 for that specific day,” Mr Kato said.

The other rules state that the group’s founder should not have a say on the money as this responsibility is often left to the treasurer. And, even if one gets an emergency [however critical], the savings should not be touched. 

Every day, members send the money to one joint mobile money account and at the end of the week, it is banked in a bank account. After the lapse of 13 days, it is given to a member for use.

The group’s name is currently undergoing registration, a process Mr Kato said is important to cement its foundation.