Connect with us

Business News

Revealed: Why boda boda business is a multi-billion venture

Kenya National Bureau of Statistics (KNBS) data puts the number of motorcycles sold in the country last year at 159,100 as at October 2017, reflecting an 87% growth



Revenue from the boda boda sub-sector is estimated to have hit Ksh 219 billion last year, according to the Motorcycle Assemblers Association of Kenya (MAAK).

The association estimates that there are at least 600,000 commercial motorcycles in Kenya each taking home an average of Ksh 1,000 per day. In contrast, a 14-seater matatu brings in a profit of about Sh3,500 daily.

Last year’s earning mean the boda boda operators raked in more money than giant telecommunications company, Safaricom, which posted Ksh 212 billion in the 2016/17 financial year.

The data released by MAAK on Monday indicates that boda boda operators make about Ksh 600 million every day moving people and goods over short distances charging as low as Ksh 50.

The association’s chairperson Isaac Kalua, while releasing the report, noted that about 4.8 million people in Kenya rely on motorcycles for their daily operations implying that each unit is attached to the livelihoods of not less than eight people.

Kenya National Bureau of Statistics (KNBS) data puts the number of motorcycles sold in the country last year at 159,100 as at October 2017, reflecting an 87% growth compared to the 85,073 bought over a similar period in 2016.

“Until there is a solution to mass transport, there shall continue to be a need,” said Kalua.

READ: Why AG Githu Muigai resigned

In areas with poor road networks, boda bodas are considered the most viable option while in Nairobi’s highways, they are used by those seeking to skip traffic snarl ups.

Yes, there are too many riders and while everyone wants to say the hustle has become the haven for the thousands of unemployed youth.

The riders have varied earnings depending how smart they can get on the job with some working late into the night to make a better catch from the odd our demand that always goes with more pay. Grievous statistics on accidents involving boda boda riders have made authorities watch the industry that is largely characterised by violation of safety requirements and traffic regulations.

Nokia 8 - Share Both sides of the story.

Joseph Sosi is a reporter with Business Today. He holds a Bachelor of Arts (Communication and Media Technology) degree from Maseno University. Previously, he was a sub-editor of Ureport and social media administrator at The Standard Group. He is passionate about politics, education and technology.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Education9 hours ago

Oxford launches guidebook for new curriculum

Oxford University Press (OUP) East Africa has, in partnership with teacher trainers, launched a free resource book in preparation for competency-based...

NEWS1 day ago

5 simple tricks Gordon Ogada used to win Sh230m mega jackpot

Gordon Paul Ogada, the guy from Kibera who won the SportPesa Mega Jackpot worth Ksh230,742,881 two weeks ago, is has...

Economy1 day ago

Drivers to pay Sh5,000 for refresher course

NTSA will also subject the drivers to medical tests on conditions that my affect their daily duties in the road

Health1 day ago

Govt partners with Johnson & Johnson on cancer control

The National Cancer Control Strategy 2017-2022 is geared at reducing cancer incidences, morbidity and mortality in Kenya

Disruptors2 days ago

Six-year-old boy creates high-tech computer game

EthanMan app is available for downloads on android play store for kids to read books and play games

NEWS2 days ago

Miguna makes fresh demand on passport

Judge Kimaru said the removal of Miguna Miguna from Kenya on February 6th was illegal and had no merit in...

Economy2 days ago

Citizens to get Sh30,000 bonus as economy grows

Singapore expects an overall budget surplus equivalent to 2.1 percent of its GDP

NEWS2 days ago

Gold worth Sh100 million found at JKIA

The gold is alleged to have been in the custody of a 46-year-old Tanzanian man

NEWS3 days ago

Water crisis hits major towns as rivers dry up

Athi Water Services Board, which manages water resources in various urban areas, notes 75% of Nairobi residents do not get...

Health3 days ago

Ebola scare after a student dies in Keiyo South

County executive says they have already communicated with the ministry of Health headquarters and a sample sent to the Kenya...