NAIROBI, Kenya, July 8 – Automotive and equipment distributor Car and General has reported a recovery in its boda boda sales following a slump in 2024.
According to the company’s General Manager, George Rubiri, the resurgence is driven by improved financial behaviour among buyers and a more stable economic environment.
The firm had previously faced a dip in sales largely due to customer loan defaults that began during the COVID-19 pandemic.
“In 2021, people started defaulting because of scaled-down liquidity and a lot of Kenyans being in the saving mode,” Rubiri said.
The company was forced to repossess many motorcycles and reintroduce them into the market, temporarily slowing new sales.
Rubiri noted that the recovery has been made possible after most of the repossessed units were sold off, creating room for the uptake of new motorcycles.
However, the market had been challenged by oversupply and the influx of new brands, which slowed the resale of second-hand units.
“We had oversupplied the market with our two-wheelers, a factor that saturated it.”
The renewed demand is being driven by several key factors, including the availability of diverse financing options, economic adjustments by buyers, and macroeconomic improvements.
According to AA Kenya’s recent Autonews report, Kenya has over 2.2 million licensed boda boda riders.
The sector injects approximately Sh1 billion daily into the economy, cementing its role as one of the key drivers of Kenya’s GDP.
