Boda boda operators: Growth in motorbike imports defies tough economy. PHOTO | FILE | NATION MEDIA GROUP
Boda bodas and tuk tuk imports in the first nine months of last
year rose by 26 percent from a similar period in 2018, defying the tough
economic times that hurt the purchasing power of Kenyans, official data
shows.
Data by the Kenya National Bureau of Statistics
(KNBS) shows that the total units rose to 181, 565 units from 143, 966
in first nine months of 2018, underlining their continued rise in
demand.
The rise saw the total import value for boda
bodas and tuk tuks rise by 28.7 percent to Sh10.3 billion from Sh8
billion in similar period in 2018.
The motorcycle taxis
have in recent years emerged as a significant employment avenue for
young people in both urban and rural areas who are otherwise unable to
find other jobs. Official data as at end of December 2018 showed that
they had employed 258,900 people.
The increased imports
came amid a credit crunch that saw banks shun lending to individuals
and small business considered highly risky following the coming into
effect of the interest rate cap, later scrapped late last year.
Boda
bodas and tuks tuks are fast becoming popular alternative for ferrying
passengers and goods for small businesses in Nairobi and other parts of
the country due to their convenience.
More than 1.35 million motor cycles have been registered in the
past decade in the industry with its value chain stretching from
wholesale and retail trade, repairs and use for transport.
The
sector is estimated to contribute Sh700 million daily to the national
economy with each of the motorcycle consumes an average of Sh200 daily
worth of fuel and more cash spent on payment of loans, savings and
meeting family needs.
Boda bodas cost between Sh58, 000
to Sh150, 000 with the affordable costs enabling many youths across
cities and rural areas to acquire them.
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