Boda bodas generating Sh400mn daily in Kenya

May 6, 2015
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Kalua says the industry has contributed over Sh2.2 billion to the exchequer in form of direct taxes with over 500,000 motorcycles on Kenyan roads/FILE
Kalua says the industry has contributed over Sh2.2 billion to the exchequer in form of direct taxes with over 500,000 motorcycles on Kenyan roads/FILE
NAIROBI, Kenya, May 6 – The motorcycle business in the country is generating income of Sh400 million daily according to the Motorcycle Assembly Association of Kenya.

The association’s chairman Isaac Kalua says on average about 14.4 million people are riding boda bodas every day signifying the importance of the sector in growing the economy.

Kalua says the industry has contributed over Sh2.2 billion to the exchequer in form of direct taxes with over 500,000 motorcycles on Kenyan roads.

“Above 99 percent are boda boda earning about Sh1,000 per day with 80 percent of the riders under the age of 35 years,” Kalua added.

He however says the industry needs polices that will propel it to the next level.

“Due to uncertain policies, the volume of motor cycle registration decreased in 2014 from 125, 058 to 111,124. These policies include an uncertain duty remission scheme and imposition of VAT on motorcycle sales, “Kalua said.

The industry is also facing challenges of rising accidents involving motorcycles owing to untrained riders that has created bad publicity for the industry.

The association intends to work closely with the National Transport and Safety Authority (NTSA) and other government agencies to increase safety awareness and other initiatives to make motorcycle riding a safer and viable economic option.

On his part, NTSA Director General Francis Meja says the authority is set to go on a countrywide campaign to sensitize the public on the new operations on motorcycle regulations 2015.

“Majority of Kenyans don’t know about the new regulations that are set to regulate the sector, “he said.

Among the new regulations dated February 5, 2015, include that riders must have Public Service Vehicle (PSV) insurance, a valid driving license and minimum third party insurance while riders must be licensed by NTSA.

Carriage of loads in the new regulations is restricted to 15 centimetres width beyond the handle bars height of two metres from the ground no rear projection beyond 60 centimetres the length of motorcycle and no load dragging on the road.

Riders must also carry only one passenger at a time and passengers must sit astride and use foot rests except for persons with disability.

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