Housing Finance Bank (HFB) and Boda Boda union have signed a Memorandum of Understanding to provide riders, bus and taxi drivers with tailored financial solutions for homeownership.
The partnership will allow HFB to extend loans to “Boda Boda Union” members for building houses and purchasing land in designated Union villages.
The program will operate under the bank’s “Zimba Mpola Mpola” scheme, which offers loans from 200,000 shillings to 50 million shillings for land acquisition and construction.
HFB Executive Director Peace Ayebazibwe said the Boda Boda industry supports over 1.2 million riders but many lack access to formal banking.
“Through this partnership, we are providing affordable loans, digital payments, and savings support to help riders own assets, grow income, and plan for their families. This is empowerment in action,”Ayebazibwe said at the bank’s head office in Kololo.
Ayebazibwe noted that the Boda Boda sector is Uganda’s second-largest employer after agriculture, making it a key area for the bank’s financial inclusion goals.
“Up to 20% of Uganda’s population of 45.9 million depend on the Boda Boda industry for aliving. On average, a boda rider has a household of five to nine members. If we support him or her in their work, we reach up to 5 to 7 million Ugandans,” Ayebazibwe said.
“Our partnership with boda boda riders goes beyond finance; it’s about creating jobs, supporting sustainable businesses, promoting affordable housing, and embracing eco-friendly solutions like electric motorcycles.” She added.
Annet Nakidde,Head of the microfinance department, reaffirmed the bank’s commitment to empowering the transport sector.
“We are proud to continue supporting riders and drivers with tailored financial solutions that foster decent living and economic growth. Together with the ‘Union,’ we believe we can transform the transport ecosystem and uplift communities,”she stated.
Bank officials praised Fred Senoga, the Business Product Advisor for the Boda Boda Union for his efforts to unite the transport sector.
“Through discipline, strong systems, and visionary leadership, we can unlock the full potential of Uganda’s transport sector. By organizing boda bodas, taxis, and buses, we will transform it into a powerful economic engine,” Senoga said.
Senoga said the “Union” resolved to partner with HFB to fuel the transport ecosystem, citing milestones from the past 12 months.
“Numbers do not lie. In 90 days, 10,000 EV bikes have been acquired,” he said, highlighting the benefits of collaboration.
Senoga said they intend to sell 100,000 EV bikes and 100,000 EV taxis next year, and establish a footprint in Uganda’s 72,000 villages by creating basic “Union” villages for housing.
He said the “Union” has embraced collaboration as its greatest strength, building partnerships with entities like NSSF, MTN Uganda, Next Media, Spiro, Honda and Simba for bike supply, and RZ Innovations for vehicle parts.
In a recent partnership, the “Union” teamed up with the National Social Security Fund (NSSF), targeting shs 365 billion in annual savings from one million boda boda riders and taxi drivers.
“For years, riders have struggled to save consistently despite earning daily income. We are targeting to recruit 1 million Boda Boda riders, saving 1,000 shillings daily,” Senoga said.