KAMULI
Forum for Democratic Change (FDC) presidential candidate Nathan Nandala Mafabi has pledged to introduce low-interest loans for Boda Boda riders and end exploitative schemes that leave hundred of thousands young cyclists in Uganda in debts.
Speaking at campaign rallies in Buyende and Kamuli districts, Mafabi said high-interest loans on motorcycles burden young people engaged in the boda boda business. He said his administration will stop this practice and alternatively offer affordable loans to cyclists.
“Our young people in the boda boda sector gain nothing from these loans. Some end up paying for multiple motorcycles while others benefit nothing. If I am elected president, I will stop this practice immediately,” he said.
The Boda Boda industry is a second largest employer in Uganda, with an estimated number of 350,000 motorcyclists in the capital Kampala. The industry employs, majorly the youth under the age of 35 years who constitute 76% of the country’s 43 million population. Many young men and a few women in the industry acquire the equipment on credit from companies such as Boda Boda Banja, Tugende, Tayari among others. However, many argue that the companies are cheating them with high-interest loan rates.
Mafabi accused companies distributing the loans of taking advantage of borrowers, saying the schemes worsen the financial vulnerability of Uganda’s youth.
He added that his government would introduce a gradual motorcycle distribution program, allowing beneficiaries to pay without undue pressure or falling into debt traps.
