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You can accuse asset financier Watu Credit of many things, but not of being bland or boring or blasé. At their offices in Upperhill Nairobi, everything seems to say something. The choice of color. The fonts. The doodles. It’s the artistic equivalent of throwing everything you have in the cupboard into a pot, stirring it for a while, and coming out with a strangely delicious meal.
“We are not even done yet,” they tell me. At 500K customers and operational in DRC, Kenya, Nigeria, Sierra Leone, South Africa, Rwanda, Tanzania, and Uganda since their inception nine years ago, in 2015, in Mombasa, I am inclined to believe them, with their most fervent evangelist, Erick Massawe , as the Country Manager Watu Credit, speaking with the easiness and candor of good friends while maintaining the ringing authority of Moses on the Mount. “None of our competitors can do what we do.” “We are the only ones where you come with a dream and walk away with a business,” Massawe speaks only in absolutes. No ifs. No buts. No maybes.
Maybe he has earned that right, starting his career as a volunteer and to borrow a hackneyed phrase, pulling himself by his bootstraps, to climb to the top of the hill, while still identifying with the streets he grew up on, the masses, the urm, watu. He, Massawe likes to do this a lot, to use his past as a way to illuminate the present. “You can have excuses or you can have results…but you can’t have both.” Perhaps that is why he is tasked with leading Watu Credit—to plant his flag and nail his colours to the mast.
Was this all you ever wanted to do? It was clear to me what I wanted to do 15 years ago when I volunteered to do community projects around environmental conservation and HIV/AIDS education and life skills. I wanted to be a leader because everything then was around joint problem-solving, taking leadership, and driving initiatives. I enjoy working with people, and I narrowed to nature, technology, and business—but in a leadership position.
To be clear, are you still volunteering now, here at Watu? No, haha!
Your business card says Country Manager, Watu Credit. But how do you define what you do? This is a general management role, and I provide oversight and leadership for the day-to-day running of the business in Kenya. I also define the vision of the business—strategy formulation for the next two to three years, and long-term plans.
What do people normally ask you? Depends on the context. But they want to know the big picture of the business—how we are doing, what and where we are going.
What do you wish they would ask you more? How can I best support them? My leadership philosophy is about being part of the team, only that you are wearing the captain’s band. You should be on the ground, next to your colleagues supporting each other. I believe in servant leadership and inspiring my people.
What do you have that others don’t? I believe that I am a normal human being. It just happens that I am wearing the captain’s band. I am less about hierarchy—I play the coordination role, and it is a privilege to be given that responsibility. Maybe this is because I started my career as a volunteer making nothing, and I have played every role in my journey, and that makes me appreciate that anybody can be Erick.
Looking back over 15 years, were there particular moments in your career that with hindsight led you here? I always wanted to become a neurosurgeon and then a pilot. Then, I went into business, sold my business, and paid my fees for college. I think of it as water that flows down the river, as it meanders, it directs the water to where it is destined to be. Every failure and lesson has prepared me to be who I am today. At the risk of sounding like an inspirational leader, whatever happens to you is for a reason—enjoy the journey.
What was that fork on the road moment that led you to join Watu Credit? I have been riding for the last 10 years and wanted to do something related to my hobby. Watu approached me when they were just offering mobility products in Kenya, and it sounded like something I would enjoy doing not just as a hobby but as a career.
Sell me Watu in a sentence? The only place where you come with a dream and walk away with a business.
“Only”? Is that guaranteed? Our model makes us unique—we have a customer-centric approach design so that if you take a loan from us for an asset, we will do everything to make sure you become the asset owner, which banks and our competitors don’t do.
How does one qualify for a credit facility? Our system is built around trust. Everybody aspiring to become a business person, we trust they will commit to our loan, but there is also a generous belief that normally human beings are good people. The public perception is that boda bodas are kind of misfits, rogue to the society but our founder saw the opportunity in trust—if you trust these people and give them access to own the asset, they will turn them into a business. We are currently financing half a million assets.
Unlike Rwanda, which has a stringent regulation of boda-bodas, Kenya is a bit lax in the same. How do you ensure the security of your assets? That is happening because the majority of boda boda riders don’t have licenses because they don’t have the means to afford to pay about 10k for the lessons; thus they take the shortcut and learn from friends. That is the reality of many boda boda riders across Africa. As Watu, we are closing that gap—we are the only company that offers loans for driving school and license processing (Watu Shule) where customers pay back as little as 300 bob a day. We send our trainers to their stages, slashing costs even further. Watu Shule also offers insurance to riders. We have partnered with NTSA [National Transport and Safety Authority] on a program called Tujenge Msingi to raise awareness about safety as comprehensive as it can be—be it riding when sick, excessive loading, drug abuse et al. We provide free health checks for vitals and raise the question of not operating the asset if you do not feel well.
But do these programs truly address the realities of boda boda riders who rely on daily wages?
Yes, we have seen the impact firsthand. Financial literacy is a key part of our approach. We encourage savings and community support systems so riders have a safety net during emergencies. We want to empower them to build sustainable businesses, not just provide loans.
Do you have restrictions on funds usage? No, we only finance assets. Our mission is to empower entrepreneurs, we are geared to give loans to people intending to use it for business and income-generating assets.
What’s your client base like? We have 1.2 million active customers—a combination of boda boda customers, mostly male, between 20 and 30 years old.
How does Watu mitigate the risk of default? "Since our inception nine years ago, we have financed over half a million assets, and 80% of those are now owned by our customers," Massawe states. "We are heavily mission-oriented. We have insurance and asset replacement programs to protect both our customers and the company. We even offer free storage for bikes during emergencies to discourage riders from working when they shouldn't be." We have a 24-hour operation for customer emergencies, be it accident or theft, they can call us on our toll-free number, which is why we end up recovering 54% of all cases.
What would you say is the main reason you have survived the economy as other major players have exited the country? Our customers. We are in asset financing, but we are customer-centric. Most businesses are asset-centric. If you show your customers that you care about them and are deliberate about their success, they will make you successful. Also, we have unlocked opportunities for untapped markets. Our ideal target is a customer not accessing any financial system because of a lack of collateral and because they are excluded and too risky—with dedication, this keeps us moving. Customers decide the fate of a business.
Every revolution promises a change. Every business claims to be customer-facing. It is easy to get mired in the buzzword of business, but what does your customer centrism look like? Customer centrism can be a philosophy but it can also be a deliverable—a brand promise to your customers. We have been with our clients all the way, and we consistently deliver. Last year we collected 51,000 handwritten testimonials from our clients, giving us a reason to believe our customers appreciate the value of our services. As a philosophy we have implemented several things that prove that: we don’t have a customer care department, we have a customer success department. My job is to make my customers successful.
What is a major trend you have noticed in your industry so far? Due to macroeconomic headwinds, electric vehicles emerge as the future, and the struggle is real for those customers who do not have the infrastructure to adopt electric mobility. It resonates with the global trend of shifting businesses towards green, shaping the future of transportation.
How are you bridging that gap? By being at the forefront of financing early adoption. Any customer can pick any brand, and we will finance it. We have done a successful pilot in Uganda integrating boda business by partnering with a battery manufacturer and bike assembler. We have built our own charging infrastructure. Last year we sold half of the electric bikes that were sold in Kenya. The limiting factor is on the finding side because it is quite capital-intensive, however, we have sold over 2000 bikes in Uganda already.
Why is there such a disparity between Kenya and Uganda in e-mobility? Regulatory environment. In Uganda, the government is much more proactive. They gave us a lot of incentives compared to anywhere else in East Africa. But a plus to Kenya is that the government is becoming proactive, and being the leading asset finance player, we are pro-electric.
The modern-day customer is spoilt. They want the latest thing—how are you satisfying this need for innovation? We had started a refurbishment project to almost new condition for our bikes, as a financing solution so you don’t have to spend unnecessarily. We see the opportunity to convert existing bikes to electric. The majority of our customers are quite informed and know how to use the latest technology.
What is an opportunity you have noticed in your area of expertise that most people are not paying attention to? Ten years ago, we had less than 200,000 players. Now, we are up to two million. Spare parts supplies, maintenance, recycling programs et al. How do you recycle used motorcycle parts to make furniture? This is a downward opportunity. As the industry expands, so do the opportunities. There is also a conversion from a product-centric economy to a service-centric economy, such as rescue and recovery operations. There is also a massive opportunity to leverage boda boda community for security—your boda knows how much travel you do and to where, and in some instances, what food you eat and where you get it. Who is paying information to that and taking advantage to provide security?
How are you defining success now? The success of my customers—the number who complete the loan on their assets.
Where do you see Watu going? We are the leaders in Kenya with 60% of the market share. We have a responsibility to define how it looks and drive innovation.
From my mama mboga to the government, everyone is talking about AI; what about Watu? "We utilize machine learning and big data in our daily operations," Massawe explains. "Our customer app allows users to access services and information, and with each interaction, we learn more about their needs and preferences. This data helps us predict future needs and tailor our offerings accordingly."
Can you elaborate on the specific AI applications you use? What algorithms are you employing, and what data points are most valuable in your predictive models?
"We utilize a combination of supervised and unsupervised learning techniques," Massawe explains. "Our models analyze various data points, including customer demographics, loan repayment history, asset usage patterns, and even social media activity. This allows us to assess risk more effectively, personalize loan offers, and proactively identify potential issues before they escalate. For example, by analyzing GPS data from our financed vehicles, we can detect unusual activity that might indicate theft or misuse, allowing us to intervene swiftly."
What is a misconception you had about the industry that was debunked after you joined Watu? Our industry is really politicized, and one of the key roles they (boda boda) play is that they are a good political vehicle. I wish people would understand that our customers are quite thankful for what we do, and that makes me happy compared to what I could have done individually.
What is Watu’s star achievement? Employment creation. About 400k families are benefiting daily. Watu was founded in Mombasa nine years ago and now we are operational in eight African countries employing about 3,000 people—that is a testament to how much we have contributed to improving livelihoods and help aspiring entrepreneurs to realise their future ambitions.
What can Watu do better? "Tell our story," Massawe admits. "Many people are surprised by our scale and impact. We need to do a better job of communicating our successes and the value we bring to our customers."
If you could boil down your 15 years in the work industry into a single sentence, what would you tell me? I take pride in the colleagues I have worked with and helped to achieve their career goals. I have produced five MDs who are running companies similar to Watu elsewhere.
Did you not insert a non-compete close? Haha no! In a career, you help people to realize their potential. Everyone is different, and the moment people start to grow and thrive is when they realize who they are and build on their unique traits, characteristics, and ability to become themselves and their own version of a leader.
Kenyans have a peculiarity of having a side for everything—side plates, side gigs, side hustle—do you have a side hustle, and is it a boda? Haha! I don’t think it is a side hustle because I do it for free. I happen to be a coach and a mentor, and just help people when I can.
By Eddy Ashioya