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Advocating for Regulatory Clarity in Motorcycle Financing

In the dynamic landscape of Kenya’s bodaboda industry, the role of asset financing players has been pivotal in propelling growth and ensuring financial inclusion. Let’s delve into some compelling statistics:
In 2015, 93k bikes were sold in Kenya before the entry of microfinancing players.

By 2016, this figure doubled to 187k bikes with the introduction of microfinancing, and the numbers have continued to rise. Currently, an impressive 90% of all motorcycle sales are financed by these players, acting as the primary catalyst for industry growth.
Microfinancers not only bridge the financial inclusion gap, positively impacting millions in the bodaboda sector, but they also assume substantial risks that traditional banks may shy away from.

In recent discussions between the Senate Committee for Finance and Budget and CBK, a regulatory gap has come to light. We appeal to the Government, through the Senate and CBK, to engage constructively with these financing players, addressing the prevailing issues. Unfortunately, recent engagements have led to negative press, creating tension within the investor community and asset financing companies.

The need for regulatory clarity is evident.

We urge the Government to initiate an open forum, bringing all stakeholders together to identify and discuss regulatory gaps. This platform should facilitate the proposal of solutions and the formalization of amendments to existing regulations, supporting the industry’s efforts to progress and evolve.
Motorcycle financing is not just about numbers; it’s a critical driver for growth and impact within the bodaboda industry in our country. Each of us shares the responsibility to foster a conducive environment for financing companies, ensuring the sustained growth and scalability of an industry that employs millions of our fellow citizens.

Let’s collaboratively work towards a regulatory framework that encourages growth, innovation, and inclusivity in Kenya’s bodaboda sector!

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