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How to Start a Profitable Boda Boda Business in Kenya

The boda boda business is one of the most common and lucrative businesses in Kenya. It has employed thousands of people. If you wish to start a boda boda business in Kenya, many opportunities have not been utilized yet. You need to understand how you can venture unto the business, its challenges and how to start a successful boda boda business in Kenya.

Also read: How to start a mitumba business in Kenya

Boda Boda Business Guide

This is what you need to know if you wish to start a profitable boda boda business in Kenya. 

Boda boda riders

Identify Boda Boda Business Niche

Boda boda business comprises of motorcycle and tuk-tuk business. Depending on your budget, you need to decide the one you wish to venture into. Both the motorcycle and tuk-tuk business are profitable. The tuk tuk business is better since you can carry more passengers, unlike for motorcycle business. However, tuk-tuk business requires more startup capital compared to the motorcycle business.

Draft a Boda Boda Business Plan

You need to draft a boda boda business plan. Some of the things to include in the business plan include; boda boda niche to venture in, startup capital, sources of startup capital, area in which you will operate your business, opportunities in the market and projected cash flows from the business. 

Raise Boda Boda Startup Capital

The next thing you need to do is to raise boda boda startup capital. You can use your savings, borrow a loan, get funding from friends and relatives or from a micro-finance.  To start a boda boda business, you need between Ksh 50,000 and Ksh 150,000. A new motorcycle goes for around Ksh 90,000, while you can also get a second hand or EX-UK at around Ksh 50,000.

Also read: Sources of business startup capital

Among the best motorcycle brands in Kenya suitable for boda boda business include:

  • Boxer
  • TVS
  • Dayun
  • Honda
  • Yamaha
  • Suzuki
  • Ranger
  • Lion

Get the Best Motorcycle Dealer

Identify a trusted motorcycle dealer. Before purchasing a motorcycle, ask from those in the boda boda business about the best motorcycle brands and their respective prices. It will help you to buy a long-lasting motorcycle for your business at a lower price.

Among the things to consider when buying a motorcycle include:

  • Price
  • Size
  • Fuel consumption
  • Engine size

Get the Necessary Licenses

You need to get a license to operate a boda boda business. It is risky to run a boda boda business in Kenya without a license. You must get training from a reputable school to get a license. You will learn the traffic rules and how you can stay safe on the road. This way, you can protect yourself and other road users.

Read more: Business permits you need to operate a business

Get Boda Boda Business Insurance

The comprehensive insurance is the best for boda boda business. It covers the rider, passenger, motorcycle and third parties in case of an accident. If you are involved in an accident, even if it is your fault, other parties will be compensated, thereby eliminating personal liabilities.

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Select a Suitable Boda Boda Business Location

You need to get started with your boda boda business. First, locate a suitable place where you can get many customers. Look for a place where there are many people. Some of the best places you can get many customers include near bus stops, outside institutions like colleges and hospitals.

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Boda Boda Fleet Business in Kenya

If you have enough startup capital, you can buy several motorcycles and tuk-tuks to operate a fleet of boda boda business. You need to employ riders and drivers for the boda bodas and tuk-tuks. The next thing you need to is to get boda boda hailing app so that customers can book services online. Anytime a customer needs transport services, they can book using the app. You need to advertise your business on social media platforms like Facebook, Twitter and Instagram.

Is Boda Boda a Profitable Business in Kenya?

Yes. The boda boda business is a source of livelihood to many families in Kenya. You can start with one boda boda and grow your business to a fleet of boda bodas. With a single boda boda, you can make between Ksh 700 and Ksh 1,500 depending on your location and competition.

Challenges Facing the Boda Boda Business in Kenya

  • Boda boda riders are considered hooligans due to the unruly conduct like bad language from a few of them. This makes many customers to shy away from using boda boda means of transport.
  • The boda boda business has claimed many lives, while others have gotten severe injuries from accidents. It is because most boda boda riders do not adhere to traffic rules.
  • Theft of motorcycles. There has been a rise in the theft of motorcycles as the boda boda business is growing. Thieves use many tricks to steal motorcycles.

Final Thoughts

The boda boda business is a broad sector with yet many opportunities. If you have enough capital and training, you can start a boda boda business and grow your business over time. 

Also Read: Business ideas for university students