Mpesa and Boa Boda -policy for successful job creations.
Posted on March 11, 2010 by Saidimu Ole ngais
MPESA AND BODA BODA – POLICY FOR SUCCESFUL JOB CREATIONS
MPESA
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MPesa is a mobile money transfer service used by a majority of Kenyans to transact and transfer money. It is believed mobile money transfer service started in Kenya despite being a third world country struggling to get the grips of climbing a steep mountain of rich economy and literacy levels.
MPesa was initiated by an indigenous mobile operator and the most respected company in East Africa the Safaricom Foundation. The initial conventional aim of MPesa was a convenient money transfer service between Safaricom customers. Initially Safaricom were planning to be carrying out transactions themselves and little did they know the venture they were engaging in could be more than meets the eye. They bought the software from a poor freelance programmer at Kshs. 10, 000 and rolled out its operations.
In short time it appeared the business could be so big in that Safaricom won’t handle it alone as they do their customer care supports. They came with the idea of introducing middle men (MPesa agents) in between and share out the commission the customer is charged per transaction.
Less than 5 yrs down the line, MPesa has employeed about 250,000 Kenyans majority of them being young girls. Over Kshs 10 Billion is transacted over MPesa a day and counting.
Even in the larger Samburu, MPesa has employed hundreds. Thanks to Safaricom and its esteemed CEO Michael Joseph.
BODA BODA
The idea of MPesa and its success became an eye opener to the Government of Kenya. Being responsible to spearhead and manage the public sector, they felt challenged by their private sector counterparts.
The Ministry of Finance then headed by former Finance Minister Amos Kimunya, drafted plans and policies of mass job creations and employment. They saw onto it that MPesa is actually an investment by entrepreneur individuals who cheaply invest in it to make business and consequently employ themselves or other people to run their business.
They quickly pointed out the waiver of taxes and duties from importation of Boda Boda Piki Pikis. That way, they could see a Piki Piki going then at around Kshs. 310, 000 reducing to a paltry Kshs. 60,000. This way, young Kenyan’s especially men, could afford to buy the motor cycles and use it for their individual economic purposes like replacing the traditional Boda Boda bicycles with motor cycles.
It is already evident the employment that sector alone has created. According to my neighbor a senior man working with Kenya Revenue Authority (KRA), since the tax waivers were announced in Kimunya’s last budget speech less than 3 years ago, the total number of processed motor cycles have hit 600,000 mark which was over and above the strategic 200,000. If you walk in all towns in Kenya even in the larger Samburu, motor cycle Boda Bodas are everywhere.
Our wish is we need more creative business leaders like Michael Joseph and good copiers like Kimunya to work for this country to hit vision 2030 before set time. A leader like Michael Joseph can invent the unexplored potential areas while copiers like Kimunya can copy what other big economies are doing and introduce it here successfully.
