Nairobi — Boda boda riders who own their motorcycles through asset financing earn significantly more than those using rented bikes, according to a new report by research firm Viffa Consult.
The study, titled "The New Boda Boda Boom: Thriving Societies, Growing Economies, and Powering Green Transition", found that asset-financed riders earn an average of Sh1,100 daily, translating to Sh316,000 annually, and save over Sh440,000 in five years compared to those paying for daily rentals.
"Many riders were locked in a rental cycle that drained income without building equity. Asset financing is shifting this model," said Victor Otieno, CEO of Viffa Consult, at the launch of the report in collaboration with Watu Credit and Mogo.
The report highlights the growing influence of non-bank lenders such as Watu, Mogo Auto, and M-Kopa, which offer flexible repayment models aligned with riders' cash flows. These arrangements are helping many operators transition to ownership, improve earnings, and gain long-term financial stability.
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Kenya's boda boda sector now contributes over Sh660 billion annually, accounting for 4.4 percent of GDP, and supports millions of livelihoods. With over 2 million licensed riders, the industry is also responsible for generating an estimated Sh60 billion in fuel taxes and Sh21 billion in licensing fees each year.
Ownership has additional benefits: 67 percent of riders cite improved financial security, while 33 percwnt note better personal safety. Many have joined Savings and Credit Cooperatives (SACCOs), which the report says are improving self-regulation and professionalism in the sector.
The boda boda industry also plays a vital logistical role, moving up to 40 percent of goods in urban areas, and providing crucial last-mile services in rural communities across agriculture, healthcare, and e-commerce.
The report also points to a shift toward electric motorcycles, driven by government incentives such as VAT and excise duty exemptions. This shift is contributing to reduced emissions and operating costs in line with broader environmental goals.
However, the report warns of persistent barriers, including high interest rates, steep insurance premiums, and limited financial literacy. It recommends targeted policy reforms to support access to affordable credit, enhance safety, and foster a sustainable operating environment.
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"The report also offers a forward-looking perspective into the next frontier -- sustainability through the adoption of electric vehicles -- a journey we are proud to be part of. Most importantly, it underscores the need for collaboration across the industry to drive meaningful and lasting progress," Watu Credit Head of Commercial Chris Rumenda added.
