Frugal Innovation in African Fintech: The Case of Oye in Enhancing Financial Inclusion for Kenya’s Bodaboda Riders

Hamid Nach () and Japheth Mursi ()
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Hamid Nach: AfreLA, UQAR
Japheth Mursi: United States International University, IwazoLab, School of Science and Technology (SST)

A chapter in Technology Management for Intelligent, Open and Responsible Organizations and Ecosystems, 2026, pp 403-411 from Springer

Abstract: Abstract This paper examines how Oye, a Kenyan fintech startup, applies frugal innovation to enhance financial inclusion for motorcycle taxi (Bodaboda) riders. Drawing on Frugal Innovation Theory, Stakeholder Theory, and Financial Inclusion Framework, we investigate how the company innovatively links fuel purchases to insurance coverage. Despite contributing 3.4% to Kenya’s GDP, Bodaboda riders face significant risks from accidents and lack access to insurance coverage due to the sector’s informal nature. Through an in-depth case study combining interviews with Oye’s CEO and document analysis, we analyzed Oye’s frugal approach combining basic technology (USSD), strategic partnerships (with petrol stations and insurers), and community engagement to deliver affordable insurance. This study advances our understanding of how frugal innovation principles, in resource-constrained environments, can be applied within fintech to address the needs of informal sector workers. Additionally, it demonstrates how fintech companies can leverage existing infrastructure and stakeholder relationships to create accessible financial services in emerging economies.

Keywords: Frugality; Innovation; Emerging Economies; Fintech; Insurtech (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-23124-6_49

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DOI: 10.1007/978-3-032-23124-6_49

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