NAIROBI, Kenya, July 8 – Automotive and tools distributor Car and General has reported a restoration in its boda boda gross sales following a hunch in 2024.
According to the corporate’s General Manager, George Rubiri, the resurgence is pushed by improved monetary behaviour amongst consumers and a extra secure financial surroundings.
The agency had beforehand confronted a dip in gross sales largely as a consequence of buyer mortgage defaults that started through the COVID-19 pandemic.
“In 2021, individuals began defaulting due to scaled-down liquidity and a variety of Kenyans being within the saving mode,” Rubiri stated.
The firm was pressured to repossess many bikes and reintroduce them into the market, briefly slowing new gross sales.
Rubiri famous that the restoration has been made doable after a lot of the repossessed items have been bought off, creating room for the uptake of recent bikes.
However, the market had been challenged by oversupply and the inflow of recent manufacturers, which slowed the resale of second-hand items.
“We had oversupplied the market with our two-wheelers, an element that saturated it.”
The renewed demand is being pushed by a number of key elements, together with the provision of various financing choices, financial changes by consumers, and macroeconomic enhancements.
According to AA Kenya’s latest Autonews report, Kenya has over 2.2 million licensed boda boda riders.
The sector injects roughly Sh1 billion day by day into the economic system, cementing its function as one of many key drivers of Kenya’s GDP.
