Financing unlocks economic mobility for boda boda riders

For Kenya’s boda boda riders, earning a living has often been a daily struggle. Limited access to formal credit and lack of collateral has historically kept many out of banking systems, leaving them reliant on informal lenders with costly and rigid terms.

Today, alternative mobility financing is transforming livelihoods, helping riders acquire motorcycles and smartphones, expand businesses, and support their families.

In Migori County, 34-year-old Charles Mwita Kuria recalls the pressure of trying to make ends meet while working as a night security guard.

“School fees were piling up, rent was due, and life was becoming unbearable. Informal lenders gave me money, but under terms that were a trap. Getting a motorcycle through a rider-focused financing plan gave me a starting point,” Kuria said.

In 2021, Kuria left his job and entered the boda boda business, acquiring a motorcycle through Watu Credit. Within 18 months, he had fully repaid the loan, moved his family into a better home, and secured a steady income from daily rides, earning between Ksh.2,500 and Ksh.3,000 per day. His next goal is to open a small business for his wife, diversifying their income further.

Kuria is one of thousands of riders whose fortunes have shifted through asset financing. Watu Credit, which operates across 8 African countries and recently expanded to Mexico and Brazil, has financed over half a million motorcycles and more than four million smartphones in recent years.

Unlike banks that require collateral such as land or logbooks, Watu uses the motorcycles themselves as collateral, tracked via GPS, and offers flexible repayment plans. Being listed on CRB does not automatically block access.

Collective financing models have also emerged. In Vihiga County, frustrations with trader-led cooperatives led riders to form the Vihiga County Boda Boda Sacco in 2019.

Starting with just 150 members, the Sacco now has more than 1,000, offering loans and savings tailored to riders’ cash flows. It has invested in motorcycles, land, and planned commercial and agricultural projects, helping members build assets and strengthen solidarity.

In urban settlements such as Kibera, financing has enabled riders to expand their operations. Elly “Kidole” Kegode acquired his first motorcycle through a financing plan in 2016.

Today, he manages a fleet of six motorcycles and runs a mobile riding school that has trained more than 15,000 riders, 7,000 of whom now hold valid licenses.

“My dream is to make rider training national,” he said.

Riders also face risks, particularly theft. Kariobangi rider Kennedy Kyalo had his motorcycle stolen in September 2024.

“I had no hope. It was tracked and found in Mathare in less than 24 hours,” he said. Similarly, mechanic Wycliffe Oguna Juma in Kibwezi had his bike stolen overnight but recovered it the same day, hundreds of kilometres away in Oloitoktok.

Smartphone financing has become another critical tool. Courier rider Amos Luu acquired a smartphone through Watu Simu’s Buy Now, Pay Later model, enabling him to run a delivery business efficiently.

“My office is now in my hands. Orders, communication, navigation, everything is on the phone,” he said.

Uber driver Meshack Kipkirui, who had his phone stolen, also benefited from flexible financing, allowing him to stay afloat while replacing the device.

Erick Massawe, Country Manager for Watu Kenya, says the main challenge for riders has been access to credit, not repayment discipline.

“We target underserved entrepreneurs, people with a dream but no access to formal financing. Most riders complete their repayment cycles successfully,” he said.

Massawe also welcomed upcoming Central Bank of Kenya regulations, saying stricter oversight could curb predatory lending and improve transparency in the sector.

As financing models increasingly integrate motorcycles, digital tools, and technology-driven repayments, they are redefining economic mobility for Kenya’s informal transport sector.

Riders interviewed say the real value lies not just in credit but in predictable terms and basic protections during shocks such as theft or device failure.

From Migori to Vihiga, and Nairobi to Kibwezi, a consistent pattern is emerging: when financing reflects the realities of informal work, riders gain stability, independence, and the ability to plan ahead.

In an economy where boda bodas move both people and commerce, these new mobility financing models are quietly reshaping livelihoods across Kenya.