In a significant move aimed at transforming the ride-hailing sector in Kenya, Bolt has entered into a strategic partnership with Hakki Africa to provide accessible vehicle financing options for drivers on its platform. The collaboration will see the deployment of 1,500 vehicles over the next 18 months to eligible drivers, enabling them to work towards car ownership while benefiting from lower loan down payments and performance-based incentives.
For many ride-hailing drivers in Kenya and across Africa, the dream of owning a vehicle remains elusive due to limited access to traditional financial services. Local banks often impose strict lending criteria that most drivers cannot meet. This forces many to rent or lease vehicles, a system that results in high operational costs and reduced net earnings.
Research underscores the challenges faced by ride-hailing drivers who rent their vehicles. A study in Johannesburg, South Africa, revealed that drivers often grapple with financial burdens due to high rental costs and platform commission fees, leaving them with minimal profits.
Linda Ndungu, Bolt’s General Manager for Rides, highlighted the importance of the partnership in addressing these challenges. “At Bolt, we are committed to empowering our drivers by improving their financial stability and overall well-being. Our partnership with Hakki Africa represents a significant step towards achieving this goal by providing accessible and sustainable vehicle financing options.”
Hakki Africa, a fintech company specializing in credit scoring and loan solutions, is playing a pivotal role in this initiative. By leveraging its innovative credit scoring system, the company provides loans to gig workers who previously lacked access to financial services.
Yumeka Abe, Director of Hakki Africa, emphasized the transformative potential of this collaboration:
“We consider ride-hailing drivers essential for Kenya’s economy and its growth. Through our partnership with Bolt, we aim to enable drivers to own cars after three and a half years of repayments. Once they pay off their loans, they can increase their income, sell the car to start a new business, or pursue other opportunities.”
This partnership offers a pathway for drivers to improve their financial circumstances by transitioning from vehicle rentals to ownership. Drivers will not only reduce their operational costs but also enhance their earnings potential.
The initiative is expected to create a more prosperous driver community while fostering sustainable growth within the ride-hailing sector. By enabling vehicle ownership, Bolt and Hakki Africa are driving change, ensuring that drivers can thrive in a competitive industry and contribute to Kenya’s economic development.
As the partnership rolls out over the next 18 months, both companies aim to expand their impact and help more drivers achieve their goals. This collaboration represents a model for addressing systemic financial barriers in developing countries, offering hope for a more inclusive and prosperous future for gig workersin Kenya and beyond.