Motorcycles have become an important aspect of life for most Kenyans. There are over 1.2 million riders in Kenya, most of whom are in the boda boda business. Ninety percent of the motorcycles in Kenya are for commercial use. The cost of a quality motorcycle in Kenya is at least Ksh 100,000, which most Kenyans can’t afford. As such, most Kenyans willing to purchase a motorcycle prefer to borrow motorbike loans to purchase a motorcycle.
In this article, we are going to focus on some of the best motorbike loans in Kenya.
How to Get a Motorcycle Loan in Kenya
To get a motorcycle loan in Kenya, you need to visit a motorcycle lender or apply for a motorcycle loan online. Ensure that you meet the requirements and then provide the required documents. Most lenders work with boda boda dealers across the country. If you meet the requirements, you can go ahead and choose your motorcycle from a bodaboda dealer.
The financier will then make payment to the dealer and retain the logbook until you repay your loan in full. Once you repay the loan in full, you become the legal owner of the motorcycle, and the financier hands you the logbook.
Requirements to Get a Motorcycle Loan in Kenya
To get a motorcycle loan in Kenya, you need to provide the following:
- Proof of income
- Valid ID or passport
- Mpesa or bank statements
- Rider’s license
- KRA Pin
Best Motorcycle Loans in Kenya
The following are some of the best motorcycle loans in Kenya you should consider when buying a motorcycle.
1. Mogo Boda Boda Loans
Mogo is the leading motorcycle lender in Kenya. You can apply for a motorbike loan online or visit their branches in Nairobi, Mombasa, Nakuru, Eldoret, and Kisumu. You will need to provide 3 months Mpesa statements, personal ID, KRA Pin, 1 guarantor, and be aged between 20 and 60 years. Once you have provided that, you can choose the motorcycle you want and you can start riding within 24 hours.
You will need to make an initial contribution of Ksh 15,000 and then you will be required to be making daily payments of Ksh 300. Mogo works with most of the authorized dealers across the country. You can get boda boda loan for the following motorcycle models Bajaj Boxer, TVS, Honda, Haojin, Sonlink, Tiger, Dayun, Yamaha, Evalast, Skygo, Haojue, Ranger, Captain, Kifaru, Lifan, Shineray and Jincheng.
2. Mwananchi Credit Bodaboda Loan
Mwananchi Credit is also an excellent motorcycle lender in Kenya. You can apply for a motorbike loan from Mwananchi credit online or by visiting their offices. You will need to provide a colored passport, copy of ID, copy of KRA, 6-months Mpesa statements, and a guarantor. You will also need to make an initial contribution of Ksh 15,000. They offer motorcycle loans for a maximum duration of 18 months with a fixed annual rate of 20%.
There is no minimum repayment period, hence, you can make prepayments and not be charged prepayment fees. You can choose to repay the loan by making either daily or weekly payments. These payments are made through Mpesa. When you get a motorbike loan with Mwananchi credit, your motorbike will be fitted with a tracking device and get a comprehensive insurance cover.
Mwananchi Credit Motorbike Loan Fees
- Interest rate: 3.5% per month
- Processing fee: 4%
- Comprehensive insurance fee: Ksh 7,600
- Tracking fee: Ksh 10,000
3. KCB Boda Boda Loan
KCB is also among the best motorbike lenders in Kenya. KCB offers 70% financing for boda bodas and tuktuks. KCB goes ahead to offer comprehensive insurance cover for your motorcycle. You can get maximum financing of up to Ksh 5,000,000 inclusive of insurance. You will get comprehensive insurance of Ksh 9,600 for Boda bodas and Ksh 15,000 for tuk-tuks.
To get boda boda financing from KCB, you need to provide the following: 6-months KCB banking history, proforma invoice from bodaboda dealer, valid rider license, logbook, and proof that you can foot 30% of the cost of motorbike.
KCB Motorbike Loan Fees
- KCB base rate: 13% per annum
- Negotiation fee: 3%
4. Pioneer Credit Bodaboda Loan
You can also get a boda boda loan from Pioneer Credit. You can get up to 80% of the cost of a motorbike from Pioneer Credit. The borrower is expected to contribute 20% of the cost of boda boda. To get a boda boda loan from Pioneer Credit, you need to deposit 20% of the value of the bike, a copy of your ID, a copy of the driving license, a KRA pin certificate, 3-months Mpesa statements, and 3 guarantors.
5. Ndege Chai Bodaboda Loan
Ndege Chai SACCO is also one of the best motorbike loans in Kenya. You get a repayment period of up to 18 months. Motorbikes are disbursed on a first-come first-served basis. You need to have four guarantors to qualify for the loan. Ndege Chai Sacco will retain your logbook until you clear your loan.
Ndege Chai Bodoboda Loan Fees
- Interest rate: 14% per annum on reducing balance
- Member initial contribution of Ksh 15,000
Read more: Best saccos to invest in Kenya.
6. Watu Boda Boda Loan
Watu is the other excellent boda boda lender in Kenya. You can get boda boda or tuk tuk loan in 2 hours. You can get boda boda loan for the following motorcycle or tuk-tuk models: Bajaj, Haojin, Honda, Jincheng, Lifan, Piaggio, Skygo, Sonlink and TVS
You only need to make an initial contribution of Ksh 15,000 to get boda boda loan. For a tuk-tuk, you will need to make a down payment of Ksh 50,000. You can get flexible payment terms of up to 24 months. The motorcycle comes with comprehensive insurance and GPS tracking services.
You will need to provide the following to get financing:
- Original ID of the borrower and guarantor
- KRA Pin certificate
- Two guarantors
- Safaricom phone number registered for Mpesa and active for at least 6 months
Summary of the Best Boda Boda Loans in Kenya
The above are some of the leading motorcycle loan lenders in Kenya. To get a loan from them, you need to provide the required documents and meet their requirements. Some lenders may also require you to make a down payment. You can repay your motorcycle loan via Mpesa for most lenders.