Revealed: Why boda boda business is a multi-billion venture - Business Today News
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.

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

NEWS11 hours ago

Ruto promises tough action of corrupt individuals

Deputy President calls on the Director of Public Prosecution and the Ethics and Anti-Corruption Commission to move fast and bring...

Health15 hours ago

Shaving pubic hair increases STIs risk, survey shows

Pubic hair grooming has also been linked to an increased number of sexual partners, as people that frequently groom their...

NEWS19 hours ago

Protests as police force bearded female tout to undress

The abnormal, excessive growth of thick hair in areas not commonly associated with women is as a result of hirsutism,...

NEWS2 days ago

Top Pipeline officials homes raided in Sh647m fraud probe

EACC CEO Halakhe Waqo said anti-graft detectives seized several documents and records from the raided homes, and would use them...

NEWS2 days ago

Law firm to appeal 15-year jail term for woman who slept with 16-year-old boy

In her defence, Judith Wandera said looking at his physical appearance, the boy did not appear a minor

NEWS2 days ago

CITAM signs deal to live stream church services to Gen Z

Church says network will enable it to faithfully live out its vision with this generation, which comprises the pre-churched, un-churched...

NEWS2 days ago

Kenya now blacklists Miguna Miguna

The move is seen as aimed at avoiding another ugly specter at the Jomo Kenyatta International Airport similar to the...

NEWS3 days ago

British pensioner guilty of Kenya ‘holiday ‘ rape charges

The Crown Prosecution Service (CPS) said Keith Morris, 72, befriended the young victims' families over the past 20 years, giving...

Health4 days ago

US surrogacy agency withdraws from ‘perilous’ Kenya

Sensible Surrogacy now recommends new lower-cost programmes in the United States, which it says are completely safe and have the...

NEWS4 days ago

Kenya to reform laws to enhance biodiversity conservation

Tobiko says the ministry of Environment has formulated and reviewed laws and regulations to implement the provisions of the constitution...