Motorbike financing in Kenya; a comprehensive guide on starting a profitable Boda Boda business

motorbike financing in Kenya

Did you know that motorbike financing in Kenya accounts for more than 60% of all new motorbike sales? The motorbike financing market has grown rapidly, as a result of an increasing number of working-age millennials, high unemployment rates, and high inflation levels. The expanding middle class and increasing demand for affordable transportation are other factors that have led to the growth of this market. If you’re thinking of starting your own boda boda business in Kenya, you will need to think about how you will source financing. You see, when you’re starting a business, it’s not just about having the best business idea or product; there’s a lot more to it than meets the eye.

Draft a business plan

First things first, you need to purify your Boda Boda business vision based on what you want your own business to be, be it delivery of goods, rental, or transportation services.

Depending on your budget, you can decide the one you wish to venture into. However, whatever business model you will choose, if you have a business plan, you will earn profit at some point.

Here are a few things that you should include in your Boda Boda business plan:

  • Niche to venture in
  • Initial company capital
  • Sources of initial capital — if you don’t have any capital, Mwananchi Credit is a go-to financing company that will help you power up your business
  • An area where your Boda Boda business will be operating in
  • Opportunities in the market and projected cash flows

options for motorbike financing in Kenya

There are several different financing options available for those wanting to start a boda boda business in Kenya. When you’re starting a business, you will need to get a business loan. However, this might take a while since most banks take at least two weeks to process and approve loans. This is why you should start looking for financing options that are available and can be processed within a few days. There are three main financing options available for boda boda businesses in Kenya:

  • Asset-based financing: This is a form of financing that is secured with collateral. It allows you to borrow money against your assets, such as your car or house.
  • Credit financing: This is a short-term loan that has a high-interest rate.
  • Equity financing: This is a long-term investment that can be in the form of debt or equity.

How to secure motorbike financing in Kenya

When it comes to securing motorbike financing in Kenya, it’s important to understand the basics of personal credit. Your credit score is like a report that shows what companies can and cannot do with your credit report. Just like any other business in Kenya, boda bodas face the challenge of acquiring financing from banks.

If you are looking to obtain financing from us at Mwananchi Credit, you will need a few things to acquire the loan, which are;

  • Coloured Passport Photo.
  • Copy of ID.
  • Copy of KRA Pin.
  • Six Months Certified M-Pesa Statement.
  • Three Guarantors (Provide ID copies, one guarantor to be a relative).
  • Client Contribution KES.15,000.

Motorbike financing features at Mwananchi Credit Ltd

Mwananchi Credit Ltd offers a wide selection of motorcycle loans. The interest rate for these loans is 3.5% per month. The fees for these loans include a processing charge of 4%, an application charge of KES 500, and CRB fees of KES 300. The insurance cost is KES 7,600 (the strictest offered by Shimin Insurance Agency), and a tracking charge of KES 10,000. Credit life insurance is 1% of the amount borrowed. Repayment terms range from six months to eighteen months, and repayments may be made weekly or daily. Repayment is via Mpesa playbill number.

Why choose Mwananchi Credit for motorbike financing in Kenya?

We are a Kenyan-based loan provider that has been in business for almost a decade. We have changed many people’s lives through our loans by relieving their financial stress through our loans. Such is the case for our motorbike loans, which are ideal for young entrepreneurs who lack funding for basic transportation.

With our motorbike financing in Kenya, not only do you get to own the motorbike after, but you can also get a low-fee tracking device fitted inside alongside a tremendous low fee for comprehensive motorbike insurance. You also pay back the loan amount with 3.5% interest on the agreed amount of terms which can be as low as 300 KSH. There will also be a low 4% processing fee alongside application and CRB fees. The repayment term can also be as long as 18 months, ensuring you have ample time to repay it. This includes getting a loan for the popular boda boda and tuk-tuk bike.

Motorbike financing in Kenya has grown rapidly and is expected to continue to grow over the coming years. There are several different financing options available for those who want to start a boda boda business in Kenya.

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