Challenges such as prohibitive interest rates, high insurance premiums, and limited financial literacy still hinder broader access to affordable credit by boda boda operators.
- •According to the National Transport and Safety Authority (NTSA), there are over 2 million licensed riders currently active in Kenya.
- •Collectively, the sector generates over KSh 660 billion annually, accounting for at least 4.4% of Kenya’s GDP and supporting millions of households, small businesses, and local economies.
- •A new report, titled “The New Boda Boda Boom: Thriving Societies, Growing Economies, and Powering Green Transition“, shows that self-owned, asset-financed motorcycle riders earn significantly more than their counterparts using rented bikes.
“Improving access to credit, enhancing safety, and embracing sustainable practices will be key to driving continued growth,” said Victor Otieno, CEO of Viffa Consult.
The report notes that 67% of riders say ownership gives them stronger financial security, while 33% cite increased personal safety as a major benefit. With average daily earnings of KSh 1,100 over six working days, the sector is not only transforming lives but also significantly contributing to public revenue, generating an estimated KSh 60 billion annually in fuel taxes and KSh 21 billion in licensing fees.
Beyond their economic impact, boda bodas are essential across various sectors, including agriculture, education, health, and e-commerce. They transport around 40% of goods within urban areas and provide last-mile connectivity in both rural and urban settings.
Buy vs Rent
The report shows that self-owned, asset-financed motorcycle riders earn an average of KSh 1,100 daily—equating to KSh 26,400 monthly or KSh 316,000 annually. Over a five-year period, these riders save more than KSh 440,000 compared to those who rent, whose costs can total Ksh 780,000 versus KSh 339,688 through asset financing.
“For years, many boda boda operators were stuck in a cycle of rental dependency, paying up to Ksh 300 daily for motorcycles they didn’t own. Today, innovative asset financing models are changing that,” said Otieno.
Non-bank lenders such as Watu, Mogo Auto, and M-Kopa are driving this shift by offering flexible financing options with daily or weekly repayments aligned to riders’ cash flows.
“With greater financial stability, operators are also forming Savings and Credit Cooperatives (SACCOs), enabling better coordination, reducing criminal activities, and promoting road safety. These grassroots-led Saccos are setting a new standard for self-regulation and professionalism in the sector,” Otieno added.
The report highlights how the industry is aligning with environmental, social, and governance (ESG) goals through the increasing adoption of electric motorcycles. This green transition is being supported by government incentives such as reduced excise duty and VAT exemptions for e-bikes, helping to cut emissions and reduce operating costs.
