Watu Cuts Motorcycle Deposit to 27% as Registrations More Than Double

For many Kenyans looking to start or expand a small business, the biggest challenge is not finding an income opportunity but raising enough money to get started.

That is particularly true for motorcycle riders, for whom a boda boda can be more than a means of transport. It can be the asset that pays the bills, supports a family and provides a pathway into self-employment.

Watu Credit is now lowering that entry barrier by cutting the down payment required for selected petrol motorcycles in Kenya to 27 per cent from 35 per cent for new customers.

The change, effective October 1, reduces the amount of capital a first-time customer needs to raise before putting a motorcycle to work. Eligible returning customers will also benefit, with their down payment reduced to 24 per cent from 30 per cent.

The new terms initially apply to selected Boxer, TVS, Honda and Haojin motorcycles.

The timing is significant because Kenya’s motorcycle market has been expanding rapidly.

Data from the Kenya National Bureau of Statistics shows that 241,763 motorcycles and auto-cycles were newly registered in 2025, more than double the 118,308 registered in 2024.

The momentum has continued into 2026, with 133,127 motorcycles registered between January and June, translating to an average of more than 22,000 registrations every month.

For a prospective rider, however, the numbers only tell part of the story.

The real question is often how much money is needed upfront.

A lower deposit could make the difference between a motorcycle remaining an aspiration and becoming an income-generating asset. Instead of spending months saving for a larger deposit, a rider can potentially get on the road sooner and begin earning from the motorcycle.

Watu Country Manager for Kenya Damien Gueroult said the lower entry point is intended to make it easier for customers to access assets that can generate income and support their livelihoods.

“Lowering the entry point gives riders a stronger offer and gives us a stronger proposition in the market,” Gueroult said.

The move also comes as the informal economy continues to account for the bulk of employment in Kenya.

KNBS data shows that 18.1 million people were engaged in the informal sector in 2025, representing 83.8 per cent of recorded employment outside small-scale farming. The sector also accounted for 87.2 per cent of the 822,100 jobs created during the year.

For this workforce, a motorcycle is often not simply a personal purchase. It can be a working tool used to carry passengers, deliver goods, move stock and support other small businesses.

That makes access to asset finance particularly important.

The 2024 FinAccess Household Survey found that 84.8 per cent of adults had access to formal financial services, while 64 per cent used credit. Yet only 18.3 per cent were classified as financially healthy.

The figures highlight an important gap: having access to financial services does not necessarily mean that individuals have enough financial capacity to make large upfront investments. Asset financing attempts to bridge that gap by financing equipment that can itself generate income to support repayment.

Watu is also relying heavily on its network of local dealers and agents to take the revised financing offer to the market.

The new terms are available to both first-time customers and riders who have previously financed motorcycles through the company. The offer will be available through Watu branches as well as its network of dealers and agents.

For dealers, the lower deposit could potentially widen the pool of customers able to qualify for financing.

The immediate numbers are straightforward: 27 per cent instead of 35 per cent for new customers, and 24 per cent instead of 30 per cent for eligible returning customers.

But the bigger story is what those percentages could mean for people trying to turn a motorcycle into a livelihood.

With motorcycle registrations having more than doubled in one year and informal employment accounting for more than four in every five recorded jobs outside small-scale farming, reducing the upfront capital requirement could make asset finance more accessible to a significant section of Kenya’s working population.

For aspiring riders, the question is no longer only whether they can afford a motorcycle. Increasingly, it is whether financing can bring the cost of entry within reach.

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