Boda boda operators minting Sh980m a day, says Uhuru

The boda boda sector is emerging as one of the biggest drivers of the country's economy, with operators generating up to an estimated Sh980 million a day.

This was revealed by President Uhuru Kenyatta on Friday when met the Boda Boda Safety Association of Kenya (BAK) at the Pumwani Social Hall, Nairobi.

He described the sector as one that is full of potential and one which can be of great importance, but only if it puts structures in place to help operators manage and save their daily earnings.

“With an average daily earning of 700 shillings a day, the sector’s annual earnings are estimated at 357 billion shillings. Every single day, boda boda operators collect Sh980 million,” said President Kenyatta. 

During the meeting, the Head of State noted that the sector has the potential to make more money than all 47 counties receive from the National Government.

"We need to reflect on the income that is generated by this sector...by sheer estimates alone we assume that every year the 1.4 million riders and their ancillary services make Sh357 billion. What we give to the counties every year is Sh316 billion...it means that if your association, if you were together, would make more than what the government gives to the 47 counties," he said.

“Boda boda industry is a sleeping giant that needs to be awakened, which is why boda boda investment scheme is a great idea. Every individual should take pride in paying the price for what they want. If you do not pay the price, someone will pay to misuse you,” he added. 

Why are they broke?

He also wondered why the riders are always complaining about being broke all the time yet the sector rakes in approximately over Sh27 billion on a monthly basis. 

“Every year, the boda boda industry collects Sh357 billion, if you collect almost Sh1 billion a day, why does every boda boda rider cry of hard economic times?” he wondered.  

According to the president, the sector supports, directly or indirectly, 5.2 million Kenyans which accounts for 10 per cent of the population. 

“This means that one in every 10 Kenyans makes his livelihood because of the business that you do...My advice is to tell you to leverage your numbers.. look at things not in an individual aspect but from a collective point of view. At times, you’ll have to make unpopular decisions hence the reason why I came with a lean team. But always think of yourselves first and be careful not to be swindled based on political grounds,” he added. 

The president's meeting with boda boda riders in Nairobi comes just weeks after his deputy, Dr William Ruto - who has been targeting the youth with several initiatives aimed at helping them start informal sector businesses - donated Sh2 million to the Kisii Boda Boda Sacco members, urging the recipients of the funds to use the money to expand their businesses.

The President, during the Mashujaa Day celebrations at Gusii stadium in Kisii county, gave the clearest indication that he would not let his deputy ran away with the youth agenda.

Mr Kenyatta, who was accompanied by ODM Leader Raila Odinga, on Wednesday held a session with hundreds of boda boda riders drawn from Kisii and donated Sh3 million.

Ironically, they had previously criticised Dr Ruto’s harambees and handouts targeted at the youth and boda boda riders.

Sonko skips event

Conspicuously missing during the Pumwani event today was Nairobi governor Mike Sonko. At the meeting, the president urged Nairobi residents to rally behind Nairobi Metropolitan Service Director-General Maj-Gen Mohammed Bad, who was present. 

The boda boda collective investment scheme signed between boda boda safety association and a host of partners including Rubis Energy Kenya, in the presence of the president, will see members contribute Sh50 every day towards the scheme.

Mr Kenyatta underscored the importance of a sector he described as a silent economic miracle, saying it is a critical player in the country.

ICT Cabinet Secretary Joe Mucheru said the collective scheme is part of an elaborate plan to bring sanity to the sector by enhancing accountability. Boda bodas have gained notoriety for disregarding existing laws.

“The intention is to get as many people as possible organised. If such industries are successful, a lot of growth can be recorded in the country,” he observed.

According to Mr Mucheru, the government has similar plans for other informal sector players including farmers, salon and barber shop workers.

Speaking at the same function, Boda boda safety association national chair Kevin Mubadi said the association remains committed to working with the government to transform the sector.

The collective investment scheme will be regulated by the Capital Markets Authority (CMA) with Kenya Commercial Bank (KCB) being the custodian and Noble Capital acting as the fund manager.