Before Investing In Boda Boda, Know The Following

By Juma / Published April 30, 2022 | 3:00 am




KEY POINTS

Kenya is estimated to have at least 1.2 million riders. But the number of motorbikes is estimated to be at least 6 million with 9 out of 10 motorbikes being used for business.


Boda Boda

KEY TAKEAWAYS


Study showed that every boda boda in Kenya makes at least Ksh 1,000 per day. But in reality, those in the rural area are barely making Ksh 200


Stats say that Kenya has at least 1.2 million riders. The numbers are however higher than the quoted since almost 80% of boda bodas in Kenya are unregistered.

Some statistics have quoted the number of motorbikes in Kenya at 6 million with about 5.9 million being boda boda.

9 out of 10 motorbikes in Kenya are used for commercial purposes, representing over two million jobs created. 75 percent are male and 25 percent are female.

According to a study by Car and General, each boda boda rider makes an average of 1,000 shillings per day from an average of 15 rides, translating to a daily income of 1 billion shillings or 365 billion shillings annually for the one million of them.

This is equivalent to 3.4 percent of GDP and almost matches the output of Kenya’s education sector, whose contribution to GDP stands at 3.8 percent.

The Treasury rakes in about 60 billion shillings yearly in fuel taxes from boda bodas, which consume an average of 300 shillings worth of petrol each day.

This translates to 300 million shillings worth of fuel each day, out of which about 163 million shillings go to the government in form of taxes, levies, and other charges.

But do not let the numbers quoted in terms of income push you into rushing to purchase a motorbike. Those are just numbers. The reality on the ground is different.

For instance, in most villages around the country, boda boda business has been seen as the only saviour for millions of educated but jobless youth. Millions of them own or operate a motorbike.

In a small village called Soysambu (Tongaren Constituency), the area chief says the location has about 2,600 motorbikes. (He knows this because due to numerous thefts in the past, he forced anyone with a motorbike to submit a name.)

Now, when asked about the huge number he said, “Every primary school teacher in this area has a motorbike. Most youths own motorbikes. Some have even sold land to buy.” As a result, the place has more motorbikes than passengers. “If you make 200 a day, you are one of a rare species. It is no longer easy,” says one of the operators.

Before buying that boda boda, look at the following:

Location: what will be your area of operation? People call it the “Stage”. How many motorbikes are at the stage you want to operate? What is the competition like? Will you be allowed in?

What are others making? Be a spy. Ask what others are making on average. Is it something that might interest you? Is it worth your investment?

What are your expectations? How much are you looking at making daily? Do you think the motorbike will be able to fetch that cash?

Who will operate the motorbike? Are you going to be operator? Are you going to hire someone? Do you trust the person you to hand the motorbike to?

Leave a comment and follow us on our Twitter account at @sokodirectory.




About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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