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Africa's Leasing
Kampala Riders Cooperative · Uganda

Boda-Boda Cooperative Empowers 50 Riders Through Motorcycle Leasing

Challenge

Fifty motorcycle taxi (boda-boda) riders in Kampala were paying up to UGX 20,000 daily to rent motorcycles from individual owners, leaving them with barely enough to cover expenses. Without credit history or collateral, none could access traditional financing to buy their own bikes.

Solution

The cooperative partnered with a microleasing provider offering asset-backed motorcycle leases. Each rider made a UGX 500,000 deposit and committed to daily mobile money payments of UGX 12,000 over 18 months. GPS tracking on the motorcycles served as collateral, and the cooperative structure provided social guarantees that reduced default risk.

Results

All 50 riders completed their lease terms and now own their motorcycles outright. Average daily earnings increased by 60%, from UGX 25,000 to UGX 40,000. Twelve riders have since leased second motorcycles to employ additional riders, creating a multiplier effect that has generated over 60 new income-earning opportunities in the community.