Uganda: How Boda Loans Are Transforming Livelihoods in Uganda

When Andrew Mujuni lost his job as a security guard after eight years of service, his world turned upside down.

Retrenched without warning, he struggled to provide for his family, and his children had to drop out of school due to unpaid fees.

“My wife and I were constantly arguing, and I was bitter all the time. One day, after a serious fight with my wife, a neighbor suggested I try the boda boda business and take a loan from Watu Credit,” Mujuni recalls.

Determined to turn his life around, he took the leap. Partnering with his wife who managed the finances–Mujuni became a boda boda rider.

The motorbike quickly became a lifeline. “My kids are back in school, my wife is happy, and we’re planning our future together,” he says with pride.

For 22-year-old Simon Kalyesubula, the struggle was different but just as challenging.

After losing his father, he became the sole provider for his younger siblings. Without financial support, he turned to Watu Uganda for a boda boda loan.

Determined to build a stable future, Kalyesubula worked tirelessly and eventually acquired a second motorbike. The additional income secured his family’s well-being and provided him with long-term financial stability.

According to the Private Sector Foundation Uganda (PSFU), Uganda has approximately two million motorcycles, with Kampala alone hosting about 350,000.

The boda boda sector has become a vital part of the country’s transport system, with roughly 70% of Ugandans relying on boda bodas for daily commuting.

Frank Mawejje, Chairman of the Uganda Boda Boda Association, describes the sector as a pillar of Uganda’s economy.

“Boda bodas provide thousands of young people with a stable source of income, contributing significantly to nation-building. We are also seeing more asset financiers helping young entrepreneurs overcome initial investment barriers, which is a huge boost to the industry,” Mawejje explains.

He also acknowledges the government’s efforts in creating a favorable regulatory environment that supports financiers and boda boda operators.

To date, Watu Uganda has financed over 300,000 boda boda riders, enabling them to become self-employed and financially independent–many of whom previously had no access to traditional credit.

Christian Kamukama, Head of Commercial at Watu Uganda, explains:

“Our financing model is designed to be flexible, with low initial deposits and manageable installment plans. We focus on business potential rather than traditional credit requirements, making asset financing more accessible, especially for youth and women-led businesses.”

By providing boda boda loans, Watu Uganda is driving economic growth, transforming lives, and strengthening communities.

From struggling fathers to determined young entrepreneurs, boda boda loans have proven to be more than just a way to own a motorbike. They have become a powerful tool for empowerment, resilience, and financial freedom.

By Nile Post.