Boda Boda riders with asset-financed bikes earn more than those using rented motorcycles – survey

Boda boda riders who operate motorcycles acquired through asset financing are earning significantly more than their counterparts using rented bikes, according to a new report by research firm Viffa Consult.

The report, titled "The New Boda Boda Boom: Thriving Societies, Growing Economies, and Powering Green Transition", 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 Victor Otieno, CEO of Viffa Consult.

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. These models are empowering thousands of operators to transition from renters to owners, gaining long-term financial independence and improved livelihoods.

According to the National Transport and Safety Authority (NTSA), over 2 million licensed boda boda riders are 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.

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.

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 boda boda 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.

However, the report warns that challenges such as prohibitive interest rates, high insurance premiums, and limited financial literacy still hinder broader access to affordable credit. It calls for targeted policy reforms to support a safer, more inclusive, and sustainable boda boda ecosystem.

“For the sector to reach its full potential, collaborative action is needed from all stakeholders—operators, financiers, policymakers, and manufacturers. Improving access to credit, enhancing safety, and embracing sustainable practices will be key to driving continued growth,” said Otieno.