Asset-Financed Boda Boda riders earning more than those with rented bikes

BodaBoda riders who operate motorcycles acquired through asset financing earn significantly more than their counterparts using rented bikes. 

A survey by research firm Viffa Consult shows that self-owned, asset-financed motorcycle riders earn an average of Sh1,100 daily, translating to Sh26,400 monthly or Sh316,000 annually. Over five years, these riders save more than Sh440,000 compared to those who rent, whose costs can total Sh780,000 versus Sh339,688 through asset financing.

“For years, many boda boda operators were stuck in a cycle of rental dependency, paying up to Sh300 daily for motorcycles they didn’t own. Today, innovative asset financing models are changing that,” said Viffa Consult chief executive Victor Otieno.

Titled, ‘The New Boda Boda Boom, the report notes that 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 two million licensed boda boda riders are currently active in Kenya.

Collectively, the sector generates over Sh660 billion annually, accounting for at least 4.4 per cent of Kenya’s gross domestic product (GDP) and supporting millions of households, small businesses, and local economies.

The report notes that 67 per cent of riders say ownership gives them stronger financial security, while 33 per cent cite increased personal safety as a major benefit.

With average daily earnings of Sh1,100 over six working days, the sector is not only transforming lives but also contributing to public revenue, generating an estimated Sh60 billion annually in fuel taxes and Sh21 billion in licensing fees.

“These grassroots-led saccos are setting a new standard for self-regulation and professionalism in the sector,” Otieno notes.

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.