How boda bodas, tuk tuks can grow Kenya's economy

Boda bodas at the Nairobi CBD. FILE PHOTO | NMG

In the political arena, the current fad is to talk about motor-cycle operators, commonly known as 'boda bodas', probably focusing on their numbers and how they can thrive as a business.

Be that as it may, the road transport sector, through two- and three-wheeler operations presents itself as a portal of multiple opportunities, including job creation, youth empowerment and GDP growth.

This is attributable to its generous ability to create jobs for skilled, semi-skilled and unskilled individuals.

Even so, the two- and three-wheelers existing value chain remains underexploited, creating an obstacle to employment that turns out to be an impediment to the bulging youth population in need of employment.

The extant value chain creates avenues for value addition at various levels, namely sea and inland ports, manufacturing and assembly plants, wholesale and retail, routine operations, repair and disposal.

The market for the wheelers has been rapidly expanding in the country as projected by a spontaneous rise since the zero rating of autos below 250cc in 2008.

Their reliability, affordability, effectiveness and efficiency is a significant unique selling point that makes it the most preferred means.

Thus, there is a need to streamline the sector, both by the national government and especially county governments.

The gains are significant enough.

To address this, several approaches come into play, and they ought to be done in consultation with stakeholders to maximise gains.

One, promote and enhance local manufacturing of imported components, assembling of the two- and three-wheelers and production expansion while protecting local industries from unhealthy competition and dumping of goods in the country.

In 2017, the Motorcycle Assemblers of Kenya, Kenya Association of Manufacturers and the Ministry of Industrialisation initiated a project to manufacture five parts out of the usually imported 290 parts.

According to the Kenya Institute for Public Policy Research and Analysis (Kippra), current manufacture is largely informal and at a low scale — only one out of 58 parts and components is manufactured in Kenya.

Counties need to offer targeted support to these transport operators by formation of Savings and Credit Co-operatives Organisations (saccos), sponsoring rider trainings and public awareness campaigns. Saccos have returned some sanity in the matatu sector.

Fast-track, revise (on need basis), implement and enforce National Transport and Safety Authority (NTSA) regulation on the operations of motorised two- and three-wheelers and the Draft National Automotive Policy, 2019.

Development and strict enforcement of humane bylaws and policies are also necessary to maintain decorum and make the boda boda sector safer for everyone.

A pragmatic focus on the two and three wheelers has the momentum to move the economy in the right direction to a place where dreams come true.

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