A financial literacy initiative has trained at least 300 riders on loan management, budgeting and saving to help them manage debt and sustain their businesses.
The training took place in Namanga, Kajiado County, where participants learnt about borrowing decisions, interest rates, repayment obligations and deadlines. They also received guidance on budgeting their income, saving and planning for future financial needs.
The sessions covered financial responsibilities before taking a loan, during repayment and after clearing debts. Participants also learnt how to seek solutions when financial difficulties affect their ability to repay loans.
The training was organised by Mogo, a motorcycle and smartphone financier in Kenya. Becky Ngigi, the company's Head of Public Relations, said access to credit must go hand in hand with the skills to manage it.
“Access to finance alone is not enough. People also need the knowledge and skills to make sound financial decisions. Through these training sessions, we aim to equip boda boda riders with practical tools to manage their money, meet their loan obligations and grow their businesses sustainably,” she said.
The initiative comes as Kenya struggles to translate access to financial services into better financial health.
According to the 2024 FinAccess Household Survey, conducted by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS) and Financial Sector Deepening Kenya, 84.8 per cent of Kenyan adults had access to formal financial services in 2024.
However, only 18.3 per cent were financially healthy, compared with 39.4 per cent in 2016.
The findings point to a gap between access to financial services and the ability to use them to manage daily expenses, cope with financial shocks and plan for the future.
The boda boda sector provides income for millions of Kenyans through motorcycle transport and related businesses.
Viffa Consult's Kenya's New Boda Boda Boom report estimates that the industry generates Sh660 billion annually, contributes about 4.4 per cent of Kenya's gross domestic product and directly supports more than 2.5 million livelihoods.
Motorcycle financing allows riders to acquire income-generating assets and expand their businesses.
However, they must balance loan repayments with fuel, maintenance and household expenses, making financial planning important to keeping their businesses running.
Alex Gitari, chairman of the Kajiado County Boda Boda Association, said financial education should complement access to financing.
“Many riders depend on financing to acquire motorcycles and expand their businesses. However, taking a loan must go hand in hand with understanding the repayment terms and managing daily income and expenses. Financial literacy helps riders plan their finances, meet their obligations and make better decisions for their businesses and families,” he said.
Mogo said it would continue supporting financial education initiatives aimed at promoting responsible borrowing, effective money management and sustainable business growth.
