Firm bets on financial inclusion to unlock boda boda sector growth

Access to affordable and flexible financing is emerging as the next frontier for Kenya’s boda boda industry, with Car and General rolling out a new financial services model to deepen financial inclusion among riders.

The Nairobi Securities Exchange-listed firm is repositioning itself from a traditional motorcycle distributor to an integrated mobility and financial services provider, as competition intensifies and legacy asset-financing models lose dominance.

The shift comes amid reduced exposure by lenders, which previously played a central role in enabling riders to acquire motorcycles.

At the heart of Car and General’s strategy is a Sacco-driven financing ecosystem supported by a digital platform dubbed Navigate, designed to connect riders to credit, savings, and day-to-day operational tools.

The move reflects a broader push to bring informal sector players into structured financial systems, particularly within the boda boda industry, which supports close to two million direct jobs and generates over Sh1 billion daily.

With more than one million riders earning an average of Sh1,000 per day, the sector remains a critical pillar of Kenya’s economy, also contributing an estimated Sh60 billion annually in fuel taxes, according to Car and General.

Group Chief Executive Vijay Gidoomal said the evolving credit landscape has forced the company to rethink its approach, noting that financing penetration has fallen sharply in recent years as riders increasingly turn to Saccos, banks, and alternative lenders.

By embedding financial services within rider networks, Car and General aims to improve access and build long-term customer relationships.

Gidoomal said the shift reflects a rapidly evolving credit market in which riders have multiple funding options beyond traditional asset financiers.

“Two years ago, financing accounted for about 75 per cent of bike purchases. Today, that has dropped to closer to 30 per cent as riders access credit through SACCOs, banks and other channels,” he said.

The Navigate platform, which already has over 3,000 members, aims to reach at least 100 motorcycle SACCOs by year-end, tapping into a fragmented ecosystem of more than 10,000 groups nationwide.

Beyond financing, the company is leveraging manufacturing and localisation as complementary pillars of inclusion and growth. Its TVS assembly plant in Nakuru employs over 70 people and incorporates at least 14 locally sourced components, supported by a nationwide network of more than 100 dealers and over 1,000 parts and service outlets.

In addition, Boda Plus Ltd, launched in 2021, has established East Africa’s first motorcycle helmet manufacturing plant, producing up to 64,000 units per month, with capacity to scale to 96,000, and employing 120 people.

These investments are expected to deepen local supply chains, create jobs, and reduce reliance on imports.

Car and General’s diversification push also extends to agricultural equipment, e-mobility, and clean energy, as it positions itself to capture emerging opportunities across Africa.

The company is targeting up to 40 per cent localisation of motorcycle components over the long term, while exploring regional expansion through trade frameworks such as the African Continental Free Trade Area (AfCFTA).

Plans are underway to expand its manufacturing footprint, including a new facility expected by 2027.

Executives say the integration of financial services, digital platforms, and manufacturing is designed not only to drive growth but also to cushion the business against market shocks, particularly during politically sensitive periods.

The firm is also investing in skills development, training thousands of mechanics and integrating them into digital systems to improve productivity and earnings, further reinforcing its financial inclusion agenda.

Looking ahead, Car and General is laying the foundation for what could evolve into a digital banking-style platform, with financial services expected to become a major standalone business over the next decade.

While challenges such as high energy costs, regulatory uncertainty, and global disruptions persist, the company remains optimistic about Africa’s long-term growth trajectory.

Its strategy underscores a broader shift in the mobility sector, where access to finance, technology, and local manufacturing are increasingly intertwined in driving inclusive economic growth.

“The opportunity is there,” said Gidoomal. “The question is whether we can scale fast enough to capture it.”