Online published on 25 October, 2016.
The overall research problem was that despite the presence of Family Bank and other micro-finance institutions in Busia town (Kenya), poverty level among Boda Boda operators continues to remain high. The study was guided by the following objectives; To establish the link between poverty and proliferation among boda boda operators; to determine the relationship between financial services/products offered to Boda boda operators and their economic enhancement; to determine the effect of Family bank's tariffs on the sustainability of savings accounts maintained by boda boda operators and to establish the effect of Family Bank's marketing strategies on attracting boda boda operators. Survey method of field research design was adopted for the study with a target population of two hundred and fifty boda boda operators and Family Bank staff in Busia town. The sample was 203 out of which 84% of 235 were boda boda operators and 40% of 15 were Bank staff. Data was collected using questionnaire forms, interviews and focus group discussions.
Data collected was then analyzed using percentages and chi-square technique setting four degrees of freedom at (95%) or 0.05 confidence interval. The study found that the main contributing factor to the link between poverty and proliferation of boda boda operators was lack of capital to start any other income generating business. The most important factor in determining the relationship between financial services/products offered to boda boda operators on their economic enhancement was established to be the most important marketing strategy for attracting the operators. The study concluded that the link between poverty and proliferation of boda boda operators was due to lack of capital to start any other income generating business. The study recommended that Family Bank and other microfinance institutions should provide working capital to the operators based on the performance of the account.
