Federation sets strategies to improve bodaboda riders’ livelihoods

Dar es Salaam. The Federation of Motorcycle Taxi Operators in Dar es Salaam (MAUPIDA) has outlined plans to improve the welfare of bodaboda riders through affordable loans, capital empowerment, and housing projects.

The plans will be implemented once the federation receives an agency certificate from the Land Transport Regulatory Authority (Latra) authorizing it to issue licences to riders costing Sh17,000 per year for motorcycles and Sh22,000 for three-wheelers (bajaj).

The plan involves channeling 10 percent of these payments into the Bodaboda Savings and Credit Cooperative Societies (SACCOS).

MAUPIDA Chairperson, Mr Said Kagoma, made the statement on Wednesday, August 13, 2025, to receive the agency certificate from Latra.

Previously, banks charged interest rates of up to 20 percent on loans disbursed to MAUPIDA members, which left many of them struggling financially.

“After discussions with the District Commissioner’s office, we succeeded in reducing the interest rate to 15 percent, enabling us to begin purchasing motorcycles at lower prices,” he said.

He explained that many riders fell into heavy debt due to the high cost of acquiring motorcycles from private individuals, with repayment agreements requiring daily payments of Sh12,000 to Sh15,000 throughout 15 to 18 months.

“Currently, a two-wheeled motorcycle can be obtained for an initial payment of Sh600,000, while a three-wheeled motorcycle (bajaj) costs Sh1.1 million through the federation’s SACCOS scheme,” he said, adding that SACCOS is not just for acquiring motorcycles, but also a tool for building financial capacity.

He further revealed plans to partner with the National Housing Corporation (NHC), allowing members to acquire plots and eventually build their own homes.

“We want to move away from the uncertainty of informal living arrangements. Our members should own land and homes,” he said.

Ilala District Commissioner Edward Mpogolo urged riders to invest wisely and adopt robust economic strategies to overcome financial challenges and enhance road safety.

Mr Mpogolo noted that cooperation between riders and transport authorities has enabled them to access affordable loans with an average interest rate of 10 percent, helping them manage living costs and secure health insurance.

“Leaders have highlighted that through SACCOS collections, riders can acquire motorcycles at lower prices than the open market, invest in spare parts shops, and generally improve members' livelihoods,” said Mpogolo.

Latra's Director of Road Transport Regulation, Mr Johansen Kahatano, said the authority has launched a special program to transform the lives of motorcycle taxi riders by enabling them to own their vehicles, acquire official licences, and access financial services through cooperative societies.

Mr Kahatano said the program aims to eliminate informal employment challenges, ensure the safety of riders and passengers, and increase the incomes of youth working in the sector.

“We want these riders to have formal jobs, own their motorcycles, possess licences and insurance, and operate their businesses in compliance with the law. This will improve their lives and help reduce crime in communities,” he said.