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- The Boda Boda trap...
The Boda Boda trap...
Kenya's #1 newsletter among business leaders & policy makers
Boda boda riders in Kenya are trapped in a costly rental cycle, but innovative asset financing models are offering a way out, boosting earnings, safety, and long-term financial stability.
Good evening! It's Brian from The Kenyan Wall Street. This and more business stories in today's edition of ‘The Daily Brief’
THE BODA BODA TRAP : Why Riders opt for costly rental arrangements?
High interest rates and insurance premiums continue to limit boda boda operators’ access to credit, pushing many into costly rental arrangements.
With over 2 million licensed riders contributing KSh 660 billion annually—about 4.4% of Kenya’s GDP—the sector plays a vital economic role. A new report shows that self-owned, asset-financed riders earn more and save over KSh 440,000 in five years compared to renters.
Non-bank lenders like Watu and M-Kopa are offering flexible repayment models, enabling riders to shift towards ownership. These financial gains are fostering SACCO formations, improving safety and professionalism. Additionally, the industry is embracing electric bikes, aligning with Kenya’s green goals.
This shift illustrates how micro-asset financing can unlock grassroots economic empowerment. Traditional banks risk obsolescence if they fail to serve these high-volume, low-margin markets. As riders gain assets and organize, their political and economic power is likely to grow…but financial models need to evolve. Here is more »»»»»
FISCAL FACELIFT : Gov't plans Budget Cuts ahead of Finance Bill 2025
The Kenyan government has revised the initial KSh 4.3 trillion budget for the 2025/26 financial year, with substantial adjustments expected before the Finance Bill is tabled in Parliament. The revised budget aims to reduce the fiscal deficit to 4.5% of GDP, down from 5.1% the previous year.
Instead of focusing on raising new taxes, the government plans to close tax loopholes, streamline tax refund processes, and improve efficiency in revenue collection. Key provisions in the bill include tax exemptions for retirees' gratuity payments and deductions for small businesses on tools and equipment. Here is more »»»»»
Today's Poll
The Finance Bill 2025 is about to be tabled. What are your expectations of this year's tax plan? |
TARGETING AFRICA’S WOMB : Funds to tackle maternal and infant health
A powerful coalition of global philanthropies, including the Gates Foundation and the UAE’s Mohamed bin Zayed Foundation, has launched the US$600 million Beginnings Fund targeting maternal and newborn health in 10 African nations, including Kenya. With newborn deaths still leading Sub-Saharan Africa’s mortality stats, the initiative aims to scale health products, systems, and skilled personnel over the next five years. While the continent still suffers staggering maternal and infant mortality, the real test will be whether these dollars build sustainable change or just photo ops. Read more here »»»»»
THE TAX MAN REPRIMANDED : Why KRA Must Pay Horticultural Company
The High Court has ordered KRA to pay KSh 6.8 million to Greenboot Kenya for unlawfully auctioning a fruit cooling chamber. Customs officers ignored clearance instructions and sold the equipment without notice. The judge slammed KRA’s actions as extortion disguised in bureaucracy. Greenboot also bagged KSh 750,000 in damages for harassment. Read more »»»»»
Profit And Loss
Markets
🟢 KCB Group Plc 54th AGM Set for 22 May 2025
Key highlights:
▪️ Dividend: KSh 3.00 total
▪️ Director re-elections & new appointment
▪️ NBK sale to Access Bank update
▪️ Approval of CMA-mandated governance policies
▪️ AGM to be held virtually at 10:00 a.m.
🟢 East African Breweries Plc (EABL) will be paying an interim dividend of KES 2.50 per share today, 30 April 2025, for the half-year ended 31 December 2024.
The book closure date was 21 February 2025.
Corporate calendar
🟢 The Nairobi Securities Exchange (NSE) today saw a bullish performance. 👇🏽
Source : NSE
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Opinion and Commentary
On your watchlist
Yesterday's Poll Results
Do you think the suspension of betting adverts for a month is a solid step to regulating addiction?
🟨🟨⬜️⬜️⬜️⬜️ Yes (27%)
🟩🟩🟩🟩🟩🟩 No (73%)
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