By Njeri Irungu
More than 800 boda boda riders in Narok County have received training on how to manage their daily earnings, repay motorcycle loans and avoid falling into debt.
The financial literacy training, held on Wednesday, was organised by Mogo Kenya in partnership with the Boda Boda Association of Kenya (BAK).
The riders were taken through basic financial skills such as preparing budgets, managing daily income, understanding loan agreements and setting aside money for regular repayments.
The training also encouraged riders to contact their financiers as soon as they experience difficulties that may affect their ability to repay a loan.
Organisers said waiting until several payments have been missed can make it harder for borrowers to deal with financial difficulties.
For many boda boda riders, the motorcycle is their main source of income. The money earned from it helps them provide food, pay school fees, meet household expenses and repay loans used to acquire the motorcycle.
Mogo Events and Community Manager Sheila Wangari said riders need to look beyond acquiring a motorcycle and learn how to manage the income it generates.
“Behind every motorcycle we finance is a person who depends on that motorcycle to earn a living. It is their workplace, their business and, in many cases, the income that supports an entire family,” Wangari said.
She said understanding the cost of borrowing and planning for loan repayments could help riders keep their motorcycles on the road while protecting their livelihoods.
Wangari also urged riders facing difficult financial periods to speak to their financiers early instead of keeping silent.
“When a rider experiences a difficult month, the most important thing is not to remain silent. Speaking to the financier early creates an opportunity to understand the available options before a temporary setback becomes a bigger problem,” she said.
BAK President Kevin Mubadi said riders needed to understand their financial responsibilities because their families depended heavily on income from the motorcycles.
“Our members depend on their motorcycles every day to earn a living and support their families. It is therefore important that they understand the financial commitments that come with motorcycle ownership and know what steps to take when they encounter difficulties,” Mubadi said.
The Narok County Boda Boda Chairman said riders should develop the habit of putting aside part of their daily earnings for loan repayments before spending the money on other needs.
“A boda boda rider earns and spends money every day, so without proper planning it is easy to use money meant for a loan repayment on other immediate needs,” he said.
He also urged riders to read and understand loan terms before borrowing and to seek help when their income is affected.
The training is part of a wider financial literacy programme by Mogo Kenya and BAK that has reached boda boda operators in Nyanza, Mt Kenya, Western, Eastern and Rift Valley regions.
Industry estimates put the number of motorcycles in use in Kenya at about 2.4 million, with 68.4 per cent financed through digital and asset-based credit.
The boda boda sector is estimated to support more than 2.5 million jobs and generate about Sh660 billion annually, making it an important source of income for millions of Kenyans.
