Economy

Tough new rules require boda boda saccos, insurance

BODA

A boda boda operator carries five children from school at Vipingo along the Mombasa-Malindi highway last month. New regulations allow the taxis to carry only one passenger. PHOTO | FILE

Motorcycle taxis (boda bodas) will need commercial third party insurance cover to compensate their passengers, pedestrians and other motorists in the event of an accident.

The requirement is contained in fresh regulations issued by Transport secretary Michael Kamau, which also demand that the operators join saccos.
The rules also require passengers to wear helmets and reflective jackets.

The compensation rule, which will be a boon to insurance firms, comes in a period that has seen bike accidents increase in tandem with their rising numbers.

It will also make the boda boda business, which has in recent years employed thousands of youths, more costly to run.

Rather than pay for commercial PSV cover, many boda boda operators register their vehicles with cheaper private motorcycle insurance where passenger liability may be excluded.

“Every owner of a two-wheeled motorcycle taxi shall ensure that it has a third party public service vehicle insurance,” states the regulations.

Annual demand for motorcycles in the country increased from 16,293 units in 2007 to 111,124 last year on increased use of the bikes in public transport.

But sales dropped last year from 125,058 units in 2013, hit by the rising cost of motorcycles following introduction of value added tax (VAT) in September 2013.

READ: VAT halves motorcycle sales as prices increase

The increased use of bikes has seen a rise in deaths and injuries from accidents.

Data from the National Transport and Safety Authority (NTSA) shows 391 motorcyclists died last year, representing a growth of 19 per cent growth compared to the previous year in a period that saw deaths from accidents drop by nine per cent.

Many hospitals have set up special wards for motorcycle accident victims due to the high number of crashes blamed on irresponsible riders.

The new regulations bar riders from overtaking on the left side and demands that they observe all rules including traffic lights.

Police and other road authorities will have an easier time identifying those who fail to observe the rules as the riders are now required to join saccos of at least 100 members and wear identifying clothing.

“For two-wheeler motorcycle taxis, the name of the group or sacco which they are members of must be indelibly printed in letters not less than four inches in height on the back of both jackets,” the regulations say.

Riders currently use reflective vests or jackets with promotional messages for organisations or politicians or don’t wear them, making it hard for authorities to identify them when they commit offences.

Motorcycles have recently become a favourite getaway transport mode for thugs. Those in breach of the regulations face a fine of up to Sh20,000 or a jail term of six months. 

“Every passenger shall not board or be carried on a motorcycle that already has a passenger,” says the regulations.

The passengers will also be expected to wear a reflective jacket and a helmet provided by the rider. Passengers are now required to sit astride motorcycles save for the disabled.