List Of Boda Boda Loans Providers In Kenya

Here is a list of Boda Boda Loans Providers in Kenya. Boda Boda (motorcycles), also known as nduthi, is a popular means of transport for lower, middle, and upper-class communities in Kenya. This is because it offers a convenient means of transport from one area to another and its ability to navigate through the worst of the routes that are inaccessible by motor vehicles.

Many people have taken advantage of this high demand to convert the sector into a financial source, and it has undoubtedly employed many people who were initially jobless. However, acquiring a motorcycle can be a challenging process as it requires a significant amount of money. For this reason, financial institutions have come to their aid and are now offering affordable loans to finance motorcycles in Kenya.

Best Companies Offering Boda Boda Loans in Kenya

1. Mwananchi Credit 

Mwananchi Credit is one of the most popular companies in Kenya when it comes to loans for aspiring motorcycle owners. Interestingly, the service has a flexible payment plan of Kshs 300 daily. The loans are typically 12 months, with a maximum of 48 months contract.

You will deposit Ksh. 15,000, then pay the remaining balance plus interest in equal monthly repayments over the agreed term. After making all the repayments, you will become the motorcycle owner.

Features

  • Interest rate of 3.5% per annum
  • Processing fee of 4%
  • Application fee of Kshs 500 and CRB fees of Kshs 300
  • Comprehensive insurance fee of Kshs 7,600. (strictly by Shimin Insurance Agency).
  • Tracking fee of Kshs 10,000
  • Loan repayment term of 18 months maximum
  • Daily or weekly repayment frequency
  • Repayment method is through Mpesa paybill number
  • Bike fitted with a tracking device

Motorbike Financing Online Requirements

  • 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)
  • Applicant deposits KES.15,000, also known as a commitment fee

Contact: 0709 147000

2. Watu Africa Credit Ltd

Watu Credit Limited is a dynamic and fast-growing non-bank finance company. The company harnesses technology to offer unsecured lending, primarily through mobile services. It offers asset financing (motorcycles and three-wheelers) and has expanded to major towns.

To qualify for a loan, you are required to have the following:

  • An original ID (borrower and one guarantor)
  • KRA PIN certificate
  • Two referees (aged 18 years and above)
  • 1 guarantor (aged 20 years and above)
  • A minimum down payment for selected asset
  • A Safaricom phone number that is registered with M-Pesa and has been in the use for the last 6 months

Contacts: 0709 739 000, 0719 111 000

3. Ndege Chai SACCO

If you are a member of Ndege Chai SACCO, you are eligible for a bodaboda loan. Motorbikes will be disbursed on a first-come-first-served basis. The repayment period is 18 months, and the interest rate is 14% p.a. reducing balance.

The requirements are as follows:

  • Product to be insured
  • Repayment period is 18 months
  • Interest rate is 14% p.a.-reducing balance
  • Has to be guaranteed by 4 guarantors
  • Logbook to be retained by the financier until clearance of the loan
  • Loan to be classified as asset finance
  • Member to contribute Kshs 15,000 of the cost of the motorcycle
  • Motorbikes will be disbursed on first come first served basis

Contact: 052 203 0121

4. Mogo

MOGO is the leading vehicle financing company in Kenya. With their quick and flexible service, you can get your bodaboda within 24 hours. You get a motorcycle loan and ride your bodaboda home with Kshs 22,000 deposit.

Features

  • Start Paying From as Little as Kshs 199 per Day
  • Initial payment of only Kshs 22,000.
  • Choose any available Motorbike Model and Start Riding Within 2 Hours
  • Repayment period of 52-104 weeks depending on your preference

Requirements

  • 6 months Mpesa statement.
  • Personal ID.
  • Own KRA PIN
  • Have 1 guarantor
  • Be 20 – 65 years old
  • Down payment from KES 22,000

Contact: 0768 469 112

5. KCB Bank

Do banks give loans for motorcycles? Yes, some do. For example, Kenya Commercial Bank allows you to own a bodaboda. KCB offer you 70% financing and set you off on your bodaboda business.

KCB bodaboda loan requirements are as follows. 

  • Proforma invoice from bodaboda dealers
  • Valid driving license of the rider/driver
  • An active account with any business institution where business proceeds are remitted for at least 3 months
  • Demonstrate your ability to repay the loan
  • The bank finances up to 70% while the customer meets 30% of the cost
  • 6 months’ KCB banking history or 3 months’ group savings
  • Guarantee by KCB account holder where a logbook is held on simple deposit
  • Where a joint registration is done for the logbook, a guarantor is not required
  • An active account with any business institution where business proceeds are remitted for at least 3 months
  • KCB base rate is 13% per annum. The negotiation fee is – 3%

6. Pioneer Credit Ltd

Pioneer Credit Limited is a microfinance institution and a member of the Association of Microfinance Institutions in Kenya. The company was founded in March 2018 with a vision to offer a variety of financial services to different sectors of our economy.

Pioneer Credit finances upto 80% of the cost of the motorbike from selected dealers. The customer contributes 20% of the cost.

Bodaboda loan application requirements are as follows. 

  • Deposit of 20% of the bike value.
  • Copy of KRA PIN
  • Copy of ID
  • Copy of driving license
  • Certified Mpesa statements for the past 3 months
  • 3 guarantors

7. Progressive Credit

With over 24 physical branches and a reputation that spans several years this sounds like a company we all can rely on. For starters, the company has a minimum loan limit of Ksh100,000 meaning whether you are purchasing a brand new or locally used bike it has to be valued within that range.

One thing we absolutely love about this company is that it is fully Kenyan owned. It also has been in operation since 2011 making it probably one of the oldest lenders that target the bottom of the pyramid (also known as high-risk lending).

Requirements

Deposit of 20% of the bike value.
Copy of KRA PIN.
Copy of ID.
Copy of driving license.
Certified Mpesa statements for the past 3 months.
3 guarantors.

8. Capital Sacco

Capital SACCO, initially Meru Farmer’s co-operative Union Limited, was started in 1972 but rebranded in 2012 to deepen its roots in financing the informal sector that employs over 72 percent of Kenyans.

They introduced motorcycle loans of up to Ksh100,000 with flexible repayments terms that favor a ‘common mwananchi.’

To apply for this loan and check on their terms and conditions, one is required to visit one of their branches spread across Meru, Baringo, Litein, Nairobi, and Kerugoya.

9. Bimas Kenya

Bimas is a leading microfinance institution in Kenya with its head office in Embu and 39 branches countrywide. It provides Boda Boda loans to young entrepreneurs who want to venture into this business but lack the capital to start.

Features

  • The maximum loan amount given is Kshs 200,000
  • Repayment period of up to 18 months depending on the cost of the motorbike
  • A mandatory commitment fee of Kshs 14,000 as the first deposit
  • Daily repayment of Kshs 300 or weekly in advance
  • Standard instalment amount and with one week claim settlement.

Contact: 0701 111 700

10. KOPESHA boda boda loans

KOPESHA is the newest lender to explore the motorcycle financing sector. In collaboration with Uber Eats, they provide loans at affordable rates to aspiring motorcycle owners across Kenya. The loans are processed under 24 hours after application.

What you need to get a motorcycle loan from KOPESHA:

1. Deposit of KSh15,000
2. Valid Driver’s License
3. One guarantor + digital copy of their MPESA Statement
4. KRA Pin
5. National ID
6. Digital copy of your 12-month MPESA statement

New motorcycle owners, courtesy of KOPESHA, are required to pay installments agreed upon with the firm.

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