As the need for regulation in the boda boda industry grows, the Kenyan government is pushing riders to get insurance and licences to improve accountability, lower accident rates, and stop illegal activity in the sector.
The call is a part of larger initiatives to create a more regulated and orderly environment and streamline the industry.
Pushing for boda rider licencing and encouraging them to register with local saccos and groups is a key component of the government’s initiative.
This move is intended to improve traceability and to establish a more structured framework within the industry.
Simultaneously, according to the National Transport and Safety Authority (NTSA), the government hopes to address negative perceptions of the sector, such as its alleged involvement in criminal activities and role in road accidents.
Insurance Uptake: A Crucial Component of Streamlining the sector
Encouraging riders to obtain licences serves as a catalyst for increased uptake of insurance products as well as regulatory compliance.
To further incentivize this process, insurance companies are being urged to develop rider-friendly products.
The significance of obtaining insurance coverage is emphasised by its role in providing financial protection in the event of an accident, fostering a safer and more responsible boda boda industry.
Watu, Kenya’s leading asset financing firm, has made significant efforts to align with the government’s goals and promote the streamlining of the boda boda sector.
Safety Initiatives: Watu Shule and Tujenge Msingi
Watu credit’s ground-breaking product, “Watu Shule,” encourages boda riders to take formal driving lessons before hitting the roads. The project that currently runs in Nairobi and Mombasa with on-going expansion plans for other regions within the country.
This initiative, Kenya’s first prefinanced school of its kind, provides affordable weekly classes starting at Ksh. 300 per week. Riders are granted licences by the NTSA after completing a one-week training programme, contributing to a more skilled and licensed workforce.
Watu also encourages its clients to register with local groups, which improves traceability and fosters a sense of community within the boda boda network.
The company’s dedication to safety is further demonstrated by its collaboration with the NTSA through the “Tujenge Msingi” programme.
This initiative emphasises road safety and asset ownership, with Watu facilitating logbook transfers for their customers once their loan repayments are completed.
Championing Financial Inclusion across Africa
Watu, a pioneer in asset financing, specialises in lending for boda bodas and tuk tuks, empowering aspiring entrepreneurs in seven African countries.
Because of the company’s innovative approach to financial inclusion, it has been able to provide loans for over 730,000 assets in Kenya alone, breaking down barriers that some entrepreneurs face when dealing with traditional financial institutions.
Watu’s innovative initiatives not only align with the government’s call for regulation, but also set a standard for the entire industry.
Watu is not only driving its business forward but also contributing to the overall safety and efficiency of the boda boda sector in Kenya and beyond by advocating for licensing, insurance uptake, and responsible practices.
