The Boda Boda sector is a source of livelihood for many Kenyans. The sector employs the youth. It is a source of livelihood for over 1million youths and makes about 1Billion daily.
On average, most riders make about 15 trips daily, making about Ksh. 1000. The amount translates to KSh. 1Billion daily and Ksh. 365B in a year.
Though the sector is instrumental to economic growth, it is unregulated. Cases of misconduct and attacks on general motorists have been making headlines.
A new study looks into the rapidly growing sector, amid the recent crackdown over rising indiscipline cases.
A study of the sector
A listed company, Car & General (C&G), conducted a study on the sector. According to their report, the boda bodas supports millions of Kenyans indirectly, which is ten percent of the Kenyan population.
Car & General deals in motorcycles, spare parts, and other engineering equipment.
On average, most riders make about 15 trips daily, making about Ksh. 1000. The amount translates to KSh1Billion daily and 365B in a year
Boda boda sector contributes to 3.4% of the GDP. The high output is almost equal to the GDP from the education sector, which stands at 3.8%.
The treasury also gains revenue from fuel taxes from the sector. On average, each boda boda spends about ksh300 on fuel. They collect 60Billion annually.
The daily collection is 300 Million, and 163million goes to taxes. The government recovers the amount as tax, revenues, and other charges.
With over 1.2 million owners of motorbikes, 9 out of 10 are for commercial use. The sector creates over 1million jobs. The report also found that 75% of the riders are youth while only 6% are female.
Regulation
Though the sector is detrimental to economic growth, it is unregulated. Cases of misconduct and attacks on general motorists have been making headlines. It is a hub for unruly people who have little to no regard for traffic rules and order.
Recently, a viral video of a woman crying in distress in her car surrounded by a mob of boda boda riders.
The woman had hit a rider along Wangari Maathai Road, known as Forest road. In the video, the riders attack her, strip her and end up groping her.
The incident led to a country-wide uproar, with many people calling for regulation in the sector.
President’s directive
The president ordered a crackdown to find rogue boda boda riders who committed the heinous act. Further, President Kenyatta ordered new registration for the riders to obtain smart registration.
They are also to register in Sacco’s in the next sixty days. The Sacco’s will keep digital records to identify their own when needed.
