A self-help group (Chama) of tuk-tuk and motorbike riders from Ongata Rongai has successfully acquired a 33-seater matatu to expand their transport business.
The group, dubbed Nyoroma Self-Help Group, comprises 50 members, mostly young riders working in and around Ongata Rongai town.
While announcing the achievement, the group said that their latest investment was made possible through Equity Bank’s Asset Finance facility, under the Pamoja Banking model.
“When we decided to venture into the transport business, many banks rejected our financing request.
“It was Equity Bank that embraced us, trained us in financial literacy, and helped us save. Now, we’ve bought our first bus and are already planning for the next,” said Alex Muthama, Chairman of the group.
Also Read: How Chama of 13 Women Built Luxurious Villas in Kiambu [PHOTOS]
Equity Bank Steps In to Help
The facility supports informal groups with a savings culture and social capital rather than physical collateral. The group-based financial approach is tailored for self-organized groups like chamas.
The bus, unveiled in a handover ceremony outside Equity Bank Rongai Branch, is expected to increase the group’s income, allowing members to diversify their revenue streams and improve household livelihoods.
According to Equity Bank, the model focuses on character-based lending, collective responsibility, and personalized support instead of requiring traditional loan securities.
The group-based banking model empowers self-formed groups through training, flexible loans, and personalized support.
Therefore, the unique loan model relies on social capital, focusing on group character and repayment ability rather than physical collateral.
“We are proud of this group for their saving discipline that has seen them realize their investment goal.”
“We assign Relationship Managers to each group for daily monitoring, training, and support. It’s a full journey,” said Mercy Ogendo, Equity Bank’s Nairobi East Regional Manager for Pamoja Banking.
Also Read: 299 Chama Members Conned in Ksh4.5 billion Land Investment
Additional Benefits the Chama Received
Apart from the funds, members also received free financial literacy training, mentorship, and continuous monitoring from the bank’s local team.
“We always endeavor to transform the lives of individuals and help businesses and groups grow, as well as realize their investment dreams and visions. We are the go-to partner for asset financing, particularly for schools purchasing buses and business owners seeking to purchase pickups and trucks to streamline their operations.
“Our teams at branches make the process short and seamless and provide comprehensive financing solutions,” said Benson Githae, Regional Relationship Manager for Asset Finance.
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