Uganda-based motorcycle ride-hailing and delivery company SafeBoda is making a comeback in Kenya, set to resume operations next month after a three-year hiatus. The announcement, made on the company’s official Kenyan handle, “Tumerudi! (We are back),” signals a return to Nairobi with a countdown timer on their website indicating a relaunch in 13 days.
SafeBoda had initially closed its operations in Kenya in November 2020 amid the Covid-19 pandemic, redirecting its focus to successful operations in Uganda. The pandemic severely impacted transportation, leading to movement restrictions and a dust-to-dawn curfew, causing challenges for the company.
The closure affected over 4,000 boda boda riders associated with SafeBoda. Despite economic recovery in Nairobi, the uncertainty of a full recovery led to the decision to suspend operations. Boda boda transportation, a significant source of livelihood for an estimated 1.8 million riders in Kenya, faced hardships during the pandemic.
SafeBoda first entered the Nairobi market in 2018, offering affordable ride rates across the city. Having operated in Kampala for four years before that, the company faces a changed market upon its return, marked by increased competition in the ride-hailing industry. Leading players such as Bolt pose a challenge to SafeBoda’s efforts to regain market share.
The company also returns to Kenya at a time when the government has intensified taxation efforts, imposing burdens like enhanced National Social Security Fund (NSSF) contributions, a 1.5 percent housing levy, and the reinstatement of turnover tax to 3 percent. These financial challenges add to the complexity of re-establishing operations in the Kenyan market.
Despite these hurdles, the boda boda industry has seen substantial growth during the past three years, with an increasing number of riders finding self-employment opportunities in the sector. SafeBoda will need to navigate these changes and overcome competition to carve a successful niche in the evolving Kenyan ride-hailing landscape.
