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Boda boda riders who own their motorcycles through asset financing are earning significantly more than those operating rented bikes, according to a new report by Viffa Consult. The report underscores the growing economic power of the sector, which now contributes over KES 660 billion annually to Kenya’s GDP—representing 4.4% of the national economy.
Titled “The New Boda Boda Boom: Thriving Societies, Growing Economies, and Powering Green Transition”, the report reveals that riders with asset-financed bikes earn an average of KES 1,100 per day—translating to approximately KES 26,400 monthly and KES 316,000 annually. In contrast, riders dependent on rented motorcycles incur higher operational costs and lower savings potential.
“For years, many boda boda operators were stuck in a cycle of rental dependency, paying up to KES 300 daily for motorcycles they didn’t own. Today, innovative asset financing models are changing that,” said Victor Otieno, CEO of Viffa Consult.
The report shows that over a five-year span, asset-financed riders save more than KES 440,000, compared to rental-based counterparts who can pay up to KES 780,000 in leasing fees, versus KES 339,688 through financing.
Non-Bank Financiers Fueling Economic Empowerment
Financial service providers such as Watu, Mogo Auto, and M-Kopa are at the forefront of the transformation, offering flexible payment models—daily or weekly—tailored to riders’ incomes. These models are enabling thousands to transition from renters to owners, boosting financial independence and long-term livelihoods.
With over 2 million licensed boda boda riders active in Kenya, the sector plays a critical role across industries, including agriculture, education, healthcare, logistics, and e-commerce. Boda bodas handle approximately 40% of goods transport in urban areas and provide crucial last-mile connectivity nationwide.
According to the report, 67% of riders cite ownership as a driver of stronger financial security, while 33% point to enhanced personal safety. The sector also contributes an estimated KES 60 billion annually in fuel taxes and KES 21 billion in licensing fees, bolstering public revenue.
Towards Safety, Structure, and Sustainability
The report highlights the emergence of SACCOs (Savings and Credit Cooperatives), which are enhancing professionalism, encouraging self-regulation, and reducing criminal incidents within the sector. These grassroots collectives are furthering access to credit, training, and financial planning.
Notably, the boda boda industry is also moving toward a green future, with rising adoption of electric motorcycles supported by government incentives—including reduced excise duty and VAT exemptions on e-bikes. This aligns with Environmental, Social, and Governance (ESG) goals, contributing to lower emissions and reduced operating costs.
Call to Action: Tackle Structural Barriers
Despite these advances, the report warns of persistent challenges—such as high interest rates, expensive insurance, and limited financial literacy—that hinder inclusive growth. It calls for collaborative policy reforms to strengthen access to affordable credit, enhance safety standards, and expand sustainable practices.
“For the sector to reach its full potential, we need joint action from operators, financiers, policymakers, and manufacturers. Improving credit access, embracing sustainability, and professionalizing the industry are key to unlocking long-term growth,” added Otieno.