Are you thinking about owning your own bodaboda motorbike in Kenya? Whether you’re tired of working for someone else or want to expand your horizons, it’s now easier than ever to get the support you need from new and second-hand motorbike loan companies.
In the past, accessing loans for motorbikes was difficult, as bodaboda riders were considered high-risk borrowers. Thankfully, things have changed. Now, all you need to do is meet a few basic requirements, and you’ll be on your way with a motorbike you can proudly call your own. Whether you’re looking for a brand-new nduthi or a reliable second-hand one, this article outlines the options available to you.
Motorbike Loan Companies In Kenya: New & Used Options
| Car Company | New Bodaboda | 2nd-hand Bodaboda |
| Watu Credit | Yes | Yes |
| MOGO | Yes | Yes |
| Progressive Credit | Yes | Yes |
| Platinum Credit | Yes | No |
| Mwananchi Credit | Yes | Yes |
NB: Mwananchi Credit only offers motorbike loans to people within Mombasa County and its environs.
Platinum Credit offers motorbike loans to civil servants, county officials, and TSC members.
5 Best Motorbike Loan Companies In Kenya
1. Watu Credit
Watu Credit is a reputable lender known for providing loans for new and used bodabodas. If you hear of a colleague selling their TVS or Bajaj, you can take advantage of Watu’s offerings and save a significant amount of money. Simply connect with Watu, and they will assist you.
Watu Credit also maintains a large inventory of second-hand motorbikes, some of which are repossessions. If you have a keen eye for detail, their second-hand bodabodas could be the solution your business needs.
What about their terms? Watu Credit offers financing for a variety of bodaboda brands, including Bajaj, TVS, Skygo, Piaggio, and Haojin, among others. They are also open to financing electric bikes, which is timely given the increasing fuel costs and the government’s push for green energy.
To secure a motorbike loan from Watu Africa, you only need to pay a deposit of Ksh15,000 for a new bike or Ksh23,000 for a used one. This initial deposit is likely the biggest hurdle, assuming you have been saving for this opportunity.
In addition to the deposit, the following requirements are necessary to qualify for a second-hand motorbike loan from Watu:
- National ID card
- One guarantor with a national ID card
- KRA Pin certificate
- Safaricom line active for at least 6 months
- Good credit history
If your loan application is approved, you will have 12 to 18 months to repay it in small and flexible installments. This setup allows you to grow your business while clearing the balance, but it requires financial discipline.
Pros:
- Reasonable loan terms
- Long repayment period
- Strong customer support, especially online
- Extensive branch network across the country
- Fast loan processing
Cons:
- Strict repayment policies (financial discipline is crucial)
2. MOGO
MOGO Kenya is among the most popular non-bank lenders in the country, known for its exceptional customer support and innovative product offerings tailored to the Kenyan financial landscape. This makes them an ideal choice, especially in challenging economic times.
MOGO’s bodaboda loans are incredibly friendly, requiring only a 20% down payment for a new bike. You can then repay the loan in installments starting from as low as Ksh259 per day.
For second-hand bodaboda loans, a deposit of between Ksh15,000 and Ksh25,000 is all that’s needed to get your application considered. Other requirements for processing your MOGO loan include:
- Copy of national ID card
- KRA PIN
- Age between 20 and 60 years
- 6 months Mpesa statement
- 1 Guarantor (with an ID)
- Registered bodaboda stage member (if the bike is for bodaboda use)
MOGO deserves credit for its flexibility in product offerings, particularly with second-hand motorbike loans, making cheaper-priced motorbikes more accessible.
Additionally, the company offers Logbook loans against motorbikes and cars.
Pros:
- Highly reputable loans provider
- Extensive branch network across strategic locations in Kenya
- Excellent customer service team
- Regular special offers available at physical branches
- Reasonable repayment terms
- Fast loan processing
Cons:
- Social media customer support partly handled by bots, leading to delays in being connected with a human attendant
3. Progressive Credit
Progressive Credit is another reputable lender that has recently started offering new and used motorcycle loans. With over 24 physical branches and years of experience, this is a company many can trust. But how do their loan terms stack up?
Firstly, Progressive Credit has a minimum loan limit of Ksh100,000, meaning that whether you are buying a brand-new or locally used bike, it must fall within this value range.
One standout feature of this company is its complete Kenyan ownership and its establishment in 2011, making it one of the oldest lenders targeting the bottom of the pyramid, also known as high-risk lending.
If you’re considering a second-hand boda loan from Progressive Credit, you’ll need to pay a deposit of Ksh10,000 and meet the following requirements:
- National ID card
- 1 guarantor with a national ID card
- Good credit score
- KRA PIN number
- 6 months Mpesa statements
Progressive Credit’s lending terms are reasonable and user-friendly.
However, it’s worth noting that Progressive Credit is smaller compared to MOGO or Watu Credit. While they have over 20 branches, most are in Nairobi and the populous Mount Kenya region. They lack representation in areas like North Eastern, Lower Eastern, and Upper Eastern, which are economically significant. Hopefully, they will expand their branch network to these regions soon.
Pros:
- Reasonable lending terms and conditions
- Fully Kenyan-owned
- Over 10 years of market presence
- Above-average customer support via online and mobile phone
- Good branch network in Nairobi and Mt Kenya areas
- Relatively fast loan processing speed
Cons:
- Lack of branch presence in key parts of the country
- Customer support could provide more detailed responses (room for improvement)
4. Platinum Credit
Platinum Credit has maintained stability since its establishment in 2003, making it a reliable option for financing. While it specializes in SME finance, it also offers asset financing for new motorbikes, although it does not provide loans for used bikes.
It’s important to note that Platinum Credit extends loans exclusively to civil servants, county government employees, and TSC members. This selective approach may be a strategy to navigate the complexities of the Kenyan financial landscape.
If you have a secure government job and need a quick motorbike loan, Platinum Credit is a top choice. With 24/7 operations and the ability to process loans within 24 hours, they are among the most dependable lenders.
To qualify for a motorbike loan from Platinum Credit, you’ll need:
- Information about your payments and payslip
- Current passport photo
- National ID card
- 6-month Mpesa statement
- Guarantors
- KRA PIN certificate
Platinum Credit is a reliable option for boda boda loans. However, its exclusive focus on government employees limits access for many entrepreneurs and individuals trying to make ends meet.
Pros:
- Fast loan processing
- Professional customer support
- Flexible loan terms
- Nationwide branch network
- Personal loans also available
Cons:
- Exclusive lending to civil servants, county government employees, and TSC members
- No financing for used motorcycles
5. Mwananchi Credit
Mwananchi Credit, formerly known as Mwananchi Microlink Ltd, commenced operations in Nairobi in 2010 before rebranding to Mwananchi Credit Limited two years later. This makes them one of the oldest lenders focusing on low-income individuals, showcasing their resilience in a competitive market.
Despite Mwananchi Credit’s advertisements often portraying luxury, the company does have a special interest in bodaboda operators. Their boda loan product allows you to purchase a motorbike and repay it in installments starting from as low as Ksh300 per day, with a repayment period usually set at 12 months but negotiable for up to 48 months. Additionally, there is no minimum repayment period, allowing you to settle your loan at any time without incurring early redemption penalties.
To qualify for Mwananchi Credit’s financial products, you need:
- 3 guarantors, all with national IDs (one must be a relative)
- Copy of your national ID card
- KRA PIN certificate
- 6-month MPESA statement
- Deposit of at least Ksh15,000
However, Mwananchi Credit’s boda loans are currently limited to borrowers in Mombasa and its environs, with no services available in other parts of the country at the time of this review.
Pros:
- Flexible loan repayment contracts
- Friendly and prompt customer support
- Option to repay loans weekly or daily
- Tuktuk loans also available
- Reasonably wide branch network
Cons:
- Limited availability of boda loans to Mombasa residents only
- Lack of branches in North Eastern and Upper Eastern regions
- No lending for second-hand motorbikes
FAQs on Motorbike Loans
Is insurance required for a motorbike loan?
Yes, most banks and lenders require borrowers to have insurance for the motorcycle being financed. This is to protect the lender’s investment in case of damage or loss of the motorcycle.
Are there banks that offer motorcycle loans in Kenya?
Yes, several banks in Kenya offer motorcycle loans. Equity Bank, for example, provides risk-based lending, tailoring loan products based on your repayment ability. Other banks offering motorcycle loans include NCBA and KCB Bank. Banks generally offer lower interest rates compared to non-bank lenders, but their loan approval process is often more rigorous.
Can you make monthly payments on a motorbike loan?
Yes, most banks allow borrowers to make monthly payments based on their income. However, this option is typically available to individuals with regular monthly salaries.
What are the requirements for obtaining a motorbike loan from a bank?
The requirements vary by bank but generally include a national ID card, proof of income, such as payslips or bank statements, and guarantors. Some banks may also require a minimum deposit or down payment.
How much is a motorcycle loan repayment per month?
The monthly repayment amount varies widely depending on the lender and the loan terms. Bodaboda repayments can range from Ksh7,500 to Ksh15,000 or more, depending on the motorcycle model and the repayment period. Shorter repayment periods generally result in higher monthly repayments.
Final Thoughts
Embarking on the journey to find the perfect motorbike for your bodaboda business can be an exciting adventure. Whether you’re in the market for a new ride or seeking a dependable second-hand option, the information shared in this article is designed to be your guide.
And remember, just like finding the right bike accessories can enhance your driving experience, choosing the right motorbike loan can make all the difference in starting or expanding your bodaboda business.
