The boda boda sector is one of the most active segments of the Kenyan economy, with more than 600,000 motorcycles in operation as at 2019.
By now, the number is over a million. It is a great employment scheme for a vast number of Kenyans. A boda boda rider can make up to Sh1,000 on a lucky day.
By statistics, more than 5 million Kenyans are dependent on income from the sector. However, the cost of a brand new motorcycle is not that friendly. A good one goes for around Sh150,000.
This is an amount that many Kenyans who desire to venture into the boda boda business cannot easily raise. It is also not very easy for unsalaried people to access bank loans. It leaves many of them scratching their heads looking for a solution.
That has prompted some microfinance institutions to act on the opportunity. These companies offer very affordable motorcycle financing rates, enabling the borrower to be able to pay the loan, as well as support their family needs. For as little as Sh255 per day, you own a motorcycle.
The companies include Mogo Microfinance and Watu Credit, just to list but a few. The payment is stretched over a period of up to 36 months, making the unit payments considerably low.
Mr. Wekesa, a boda boda operator in Kakamega town, explains how the scheme has helped him.
“I pay Sh300 every day. With what I get every day, I am left with extra cash to provide for my family.”
“I was not able to buy the motorcycle in cash. I also could not access bank loans. So this was the best opportunity for me to own this motorcycle,” he says.
Mr. Wekesa says that, by July 2022, he will have finished repaying the loan and own the motorcycle fully.
With the high unemployment rates in the country, this motorcycle financing scheme has helped create an opportunity for many Kenyans. Just like that, ‘300 a day keeps the lender away for another day.’
