Bajaj transport operators in Nzega Town have been urged to formalize their activities and register as recognized groups in order to access financial services, including loans aimed at boosting their businesses and improving livelihoods.
The call was made by the Acting Director of Nzega Town Council, Mr. Omary Mungu, during a meeting held at the council hall where operators gathered to elect leaders of their association, including a chairperson, secretary and treasurer.
The elections were supervised by the Community Development Department.
Mr. Mungu said formal registration would enable the operators to benefit from government and institutional funding programmes designed to support organized economic groups.
He stressed that unity and proper leadership within the association would be key in ensuring smooth access and management of revolving funds that the council intends to facilitate.
“Leaders of the bajaj operators’ association who have been elected should move quickly to register their group officially. The council will establish a clear system to provide loans. Once the funds are repaid, they will revolve to benefit other members and strengthen their economic activities,” he said.
He added that organized groups would also make it easier for the council to coordinate training, safety compliance, and financial inclusion initiatives targeting small transport operators.
A Loans Officer from CRDB Bank Nzega Branch, Mr. Richard Litilo, said the bank is developing a structured mechanism to extend loans to bajaj operators through groups, a move expected to improve access to capital and expand transport services in the area.
He said the arrangement, once finalized, would allow operators to access loans under more coordinated and secure conditions compared to individual borrowing.
Mr. Litilo further explained that CRDB Bank already provides individual financing for the purchase of bajaj vehicles under a cost-sharing arrangement where the applicant contributes 30 percent while the bank finances 70 percent.
“For instance, if a bajaj costs 10 million shillings, the client contributes 3 million and the bank finances 7 million. The bajaj itself acts as collateral. The loan carries an interest rate of 20 percent, with repayments of about 71,500 shillings per week until completion,” he said.
He encouraged operators to ensure they meet basic requirements, including residency in Nzega and recognition by local government authorities, to qualify for financial support.
He also advised them to secure insurance coverage for their vehicles to protect against risks such as accidents and fire.
The meeting marked an important step toward formalizing the bajaj transport sector in Nzega, with expectations that organized structures will improve access to credit and enhance income generation among operators.
