Boda boda and tuk-tuk operators will be forced to have insurance covers to compensate their passengers and pedestrians in the event of an accident.
Treasury Secretary Ukur Yatani says the inclusion of fare-paying motorcycles under compulsory third cover insurance has been prompted by the rising number of accidents that have left many dead or injured and unable to foot hefty bills.
Currently, there is no requirement for the emerging public transport sector to take insurance for passengers.
Boda boda and tuk-tuk operators will be forced to have insurance covers to compensate their passengers and pedestrians in the event of an accident.
The National Treasury on Thursday proposed changes to the Insurance Act that will make it illegal for motorcyclists and tuk-tuk operators to operate without cover for their passengers and other road users.
Treasury Secretary Ukur Yatani says the inclusion of fare-paying motorcycles under compulsory third cover insurance has been prompted by the rising number of accidents that have left many dead or injured and unable to foot hefty bills.
Currently, there is no requirement for the emerging public transport sector to take insurance for passengers.
“Owners of motorcycles do not have insurance covers to cater for any treatment in case of injuries or compensation in case of death or any other damages caused by an accident involving motorcycles,” Mr Yatani said on Thursday while presenting the 2022/23 budget.
“I propose to amend the Insurance Regulations to require motorcycles and three-wheelers used by fare-paying passengers to take insurance for their passengers.”
Boda bodas to cover passenger insurance
Boda bodas have gained popularity over the years due to their ability to avoid traffic snarl-ups in urban centers and offer relatively lower fares compared to other means of public service transport.
Data from the Kenya National Bureau of Statistics shows annual motorcycle registrations more than doubled over the past five years to stand at 252,601 last year compared to 123,539 in 2016.
Motorcycles are fairly cheap, retailing at between Sh65,000 and Sh130,000, thus enabling many young people to acquire them for business.
This is the second time in less than three years that the Treasury is pushing for compulsory third cover insurance for boda bodas and tuk tuks.
