Car & General: Boda boda riders make Ksh1bn everyday

The boda boda sector in Kenya is a significant contributor to the country's economy, with a recent study by Car & General revealing that it provides one million direct jobs for riders, who collectively earn about 1 billion Kenyan shillings daily. This sector, known for its motorcycles that serve as a popular mode of transport across the country, plays a crucial role in uplifting the livelihoods of individuals in low-income regions, feeding around six million lives daily and employing a million people. The impact of the boda boda industry extends beyond just the riders, with approximately 6,000 small shops and 30,000 mechanics benefiting from the sector's operations. In terms of GDP contribution, the boda boda sector accounts for about 3.4% of Kenya's GDP. Vijay Gidman, Managing Director at Car & General, highlighted the industry's significance, stating that it generates around 365 billion shillings annually and pays approximately 60 billion shillings in fuel taxes each year. Moreover, 75% of boda boda riders are youths, showcasing the sector's role in providing employment opportunities for the younger population. However, despite its economic importance, the regulatory environment surrounding the boda boda sector in Kenya faces challenges. The sector lacks a formal system of registration, making it difficult to ascertain the exact number of registered operators. Efforts are underway to introduce a formal registration system to ensure better control and monitoring of boda boda activities. Clarifying the regulatory framework and enforcing safety measures, such as the mandatory use of safety gear, are key areas of concern in enhancing the sector's operations. Vijay Gidman emphasized the need for clear regulations and enforcement mechanisms, drawing a comparison to Rwanda's organized boda boda sector. In Rwanda, strict adherence to traffic rules, monitoring of riders' whereabouts, and registration of all boda bodas contribute to a well-regulated industry. Gidman suggested that implementing similar practices in Kenya, with the aid of data tracking systems, could lead to a more orderly boda boda sector. The recent crackdown initiated by President Uhuru Kenyatta on boda boda operators in Nairobi and across the country aimed to address the regulatory challenges within the sector. The 60-day suspension of the crackdown provides a window for the industry to self-regulate and align with the necessary standards. Moving forward, stakeholders, including the NTSA, are expected to engage in a collaborative effort to leverage available data and information for effective regulation. Gidman expressed confidence that utilizing the tracked data of every boda boda will enable the sector to enforce safety measures and regulatory compliance more efficiently. As Kenya navigates towards a more regulated boda boda sector, the focus remains on achieving a balance between economic growth and ensuring the safety and well-being of riders and passengers. With the industry's potential to continue thriving, clarity in regulations and active enforcement will be key to shaping a sustainable future for the boda boda sector in Kenya.