Business Opportunities Behind Laikipia BodaBoda Numbers
Updated on: Nov 04, 2020
In 2019 alone, an estimated 7,000 motorcycles, commonly referred as boda bodas, within Laikipia county made over 30.6 million passenger trips according to the Laikipia County Statistical Abstract 2020.
These figures alone underline the importance of the boda boda industry to the countys economy.
To many people the figures many not mean anything. But to the business-minded the figures provide gaping business opportunities to daring investors. For instance, the boda boda industry requires a lot of maintenance and spare parts. Is it possible to start a motorcycle spare parts manufacturing centre in Laikipia? Yes. Laikipia North TTI has the most modern and computerized lathe machines capable of fashioning out spare parts even for aircrafts.
If an investor would set up an industry in the county for manufacture spare parts and other requirements for the motorbikes, he is assured of a ready market.
Secondly, rarely do you find a bodaboda customer wearing a helmet. Reason being the hygiene issues related with sharing of the head protective gear. At other times the riders do not have an extra head protector. Going by the issue of hygiene and sharing of the helmet, there exist a huge gap that investors ought to fill at a profit.
Setting up an industry to manufacture disposable liners for users to dispose after use would seal the existing gap. One piece of the helmet liners might go for just Ksh.10, -Yes ten bob! which is affordable and also allow for customers to protect themselves. An investor can make a net profit of two shillings from each piece.
When multiplied by the over 30.6 million passenger trips in a year, the investment can make at least Ksh. 61m after deducting all production expenses. This is only from manufacturing helmet liners. If combined with manufacturing other bodaboda spare parts like helmets, side mirrors and tires, the profit margin would definitely shoot.
Laikipia county is in the frontline of creating good environment for any businesses to thrive.
The county government is also facilitating coming up of businesses through improvement of towns for investors to have an easy time to bring up any development projects.
The only thing a government can do is facilitate creation of development projects, but cannot start businesses.
It has also converted all its officers to become business development officers. This will enable them advise or handhold businesses towards growth and therefore create high incomes and more jobs.
Other areas investors should hurry up and put their money with an assurance of making profits is in areas around Rumuruti town. Owing to the fact that the administrative headquarters will soon shift to the town, all developers will be running there. Many workers will relocate to be commuting from nearer places. Investing in construction of residential houses is a noble idea. The opportune moment to make investments is therefore now.
Some investors have seen the great business opportunity that Laikipia has and have thus seized the opportunity. Home Business Sacco opened in Rumuruti on 16th October 2020. New Fortis, a Nyeri-based Sacco opened a new branch in Nanyuki town in September this year. Chieni Supermarket limited expanded to open a second Branch in Nanyuki town in the same month. T
he revival of the Nairobi-Nanyuki railway line is an indication that there is enough potential to make the region a manufacturing economy and maximumly utilize the new mode of transport.
The county sits at the centre of Cereb whose economy contributes to over 26% that of the total National GDP. The two main towns of the county, Nanyuki and Nyahururu links the rest of the country to other areas like the North Eastern parts, and Somalia and Southern Sudan countries. Investing in this county therefore provides an assured market, within the county, country and beyond.
These figures alone underline the importance of the boda boda industry to the countys economy.
To many people the figures many not mean anything. But to the business-minded the figures provide gaping business opportunities to daring investors. For instance, the boda boda industry requires a lot of maintenance and spare parts. Is it possible to start a motorcycle spare parts manufacturing centre in Laikipia? Yes. Laikipia North TTI has the most modern and computerized lathe machines capable of fashioning out spare parts even for aircrafts.
If an investor would set up an industry in the county for manufacture spare parts and other requirements for the motorbikes, he is assured of a ready market.
Secondly, rarely do you find a bodaboda customer wearing a helmet. Reason being the hygiene issues related with sharing of the head protective gear. At other times the riders do not have an extra head protector. Going by the issue of hygiene and sharing of the helmet, there exist a huge gap that investors ought to fill at a profit.
Setting up an industry to manufacture disposable liners for users to dispose after use would seal the existing gap. One piece of the helmet liners might go for just Ksh.10, -Yes ten bob! which is affordable and also allow for customers to protect themselves. An investor can make a net profit of two shillings from each piece.
When multiplied by the over 30.6 million passenger trips in a year, the investment can make at least Ksh. 61m after deducting all production expenses. This is only from manufacturing helmet liners. If combined with manufacturing other bodaboda spare parts like helmets, side mirrors and tires, the profit margin would definitely shoot.
Laikipia county is in the frontline of creating good environment for any businesses to thrive.
The county government is also facilitating coming up of businesses through improvement of towns for investors to have an easy time to bring up any development projects.
The only thing a government can do is facilitate creation of development projects, but cannot start businesses.
It has also converted all its officers to become business development officers. This will enable them advise or handhold businesses towards growth and therefore create high incomes and more jobs.
Other areas investors should hurry up and put their money with an assurance of making profits is in areas around Rumuruti town. Owing to the fact that the administrative headquarters will soon shift to the town, all developers will be running there. Many workers will relocate to be commuting from nearer places. Investing in construction of residential houses is a noble idea. The opportune moment to make investments is therefore now.
Some investors have seen the great business opportunity that Laikipia has and have thus seized the opportunity. Home Business Sacco opened in Rumuruti on 16th October 2020. New Fortis, a Nyeri-based Sacco opened a new branch in Nanyuki town in September this year. Chieni Supermarket limited expanded to open a second Branch in Nanyuki town in the same month. T
he revival of the Nairobi-Nanyuki railway line is an indication that there is enough potential to make the region a manufacturing economy and maximumly utilize the new mode of transport.
The county sits at the centre of Cereb whose economy contributes to over 26% that of the total National GDP. The two main towns of the county, Nanyuki and Nyahururu links the rest of the country to other areas like the North Eastern parts, and Somalia and Southern Sudan countries. Investing in this county therefore provides an assured market, within the county, country and beyond.
