Boda boda registrations fall 64pc on travel restrictions

Motorcycle registrations in the two months to May dropped 64 percent from same period last year dimmed by travel restrictions and micro-financiers who shunned dishing credit for purchase of the two-wheelers.

Latest data from the Kenya National Bureau of Statistics (KNBS) shows that 13, 983 units were registered in April and May from 38,780 units in a similar period last year.

Registrations were lowest in April at 5,099 compared to 19,717 units last year in month-on-month comparison when Kenya imposed restrictions to curb spared of the coronavirus disease after reporting the first case in March.

Dealers attributed the fall to the travel restrictions that included banning movement into and out of Nairobi and Mombasa, the dusk to dawn curfew that cut demand and slowed credit by micro financiers who introduced tougher conditions for loans amid economic uncertainty occasioned by job losses and salary cuts.

Isaac Kalua, chairman of the Motorcycle Assemblers of Kenya said that the dusk to dawn curfew led to fall in the demand for motorcycles that are a popular means of movements at night.

The travel disruptions further hurt the sales with dealers saying bulk buyers were locked out of the two biggest cities until early this month when President Uhuru Kenyatta lifted the ban on movement.

“During the lockdown, there was fear and people withheld the money they had that would have otherwise been used to buy motorbikes… micro-financiers also reduced credit to people wishing to buy motorbikes while others increased the deposit demand from 10 percent to 50 percent due to the economic fears risk,” Mr Kalua said.

Sales then picked up to 8, 884 units the following month which was however a fall of 53.4 percent from 19,063 units in similar period last year.