The Kenyan government has launched a financing scheme that will provide affordable electric bikes for boda boda riders. The move aims to enable easier acquisition of bikes while removing the financing gap for hundreds of riders, as well as providing a solution to high credit charges, which often result in additional costs for riders. The president stated that by September, a mechanism will be developed through which electric bikes will be made available to riders, providing low-cost options as fuel prices rise. The move comes amid efforts to make the country less reliant on petrol to power transportation.
Boda boda riders currently have to deposit around Sh300 and Sh15,000 per day to obtain new motorbikes, ultimately resulting in riders paying more. Higher payments in hire purchase schemes have been deemed as exploitative to the poor. However, hire-buy companies claim they help low-income individuals acquire assets.
The new financing scheme that offers low-cost e-bike financing to boda boda riders is a significant development in transport in the country. Along with the promise to roll out an electric vehicle public transport system, the government appears set to make significant strides towards reducing the cost of transport in the country.
