Nandi: Boda boda operators lose motorcycles to creditors after defaulting on payment
By KNA, December 16, 2022Bodaboda operators in Nandi County have raised concern over rampant impoundment of their loaned motorcycles after failing to remit weekly installments.
According to the operators, the business is currently not profitable due to high competition leading to default in weekly installments.
Following shortage of job opportunities in the Country, many school leavers join the industry to meet their daily needs.
Due to demand, motorbike lenders found the ground very fertile to open up their outlets.
Bernard Kipkemboi, a bodaboda operator from Kapsabet town noted that since the outlets are easily accessible to locals, many youths end up taking the motorbikes to start up the business where they pay Ksh20,000 as down payment.
Kipkemboi, who was introduced to the lender by a friend, had to sell three goats to afford the mandatory deposit of Ksh20,000 to be given a new motorbike.
Four months after acquiring the motorbike, the lender took it away after defaulting for three consecutive weeks.
During that time Kipkemboi fell ill thus was unable to pay a weekly pay of Ksh2,500.
“I have been left jobless and without a source of income. At least they should have considered my efforts for the past months. I was determined to pay,” said agitated Kipkemboi.
Boda boda riders and creditors
His efforts to negotiate with the creditors have borne no fruits.
Jonathan Chepkwony, a resident of Chesumei stated that he took his small savings to one of the motorbike lenders as required and was given a bike.
He said even before paying his first installment, he was involved in an accident that left him grounded for two weeks.
“I was still looking for money to repair the bike when officials from the firm came into my house and collected the motorbike. I gained nothing after taking the bike. In fact I lost my Ksh20, 000,” he said.
Chepkwony stated that measures should be put in place to curb these lenders from exploiting their clients especially when one has an emergency and is unable to pay on time.
According to reports from various bodaboda Saccos operating in Kapsabet and its environs, 15-20 motorbikes are being impounded on a weekly basis by the locals for failing to pay installments.
In Kapsabet town, there are three motorbike lenders which have established outlets. They offer affordable lending services thus attracting customers.
Julius Birgen, one of the bodaboda leaders noted that bike lenders are exploitative with tough conditions which are unfriendly to the bodaboda operators.
He called upon the government to intervene by imposing policies to regulate motorbike lenders in the country.
“The sector is no longer making profits like before considering the costly fuel and number of motorbikes in the region. Let us be lenient to them when it comes to servicing loans,” he said