Bolt reintroduces car loans in Kenya, faces driver backlash

Ride-hailing giant Bolt has reintroduced car loans in Kenya, aiming to address rising driver dissatisfaction with earnings. The move comes as Bolt’s driver-partners continue to push for reductions in commission fees and increases in base fares.

On August 26, Bolt raised its base fare by 10% from KES 200 ($1.55) to KES 220 ($1.71). Despite this adjustment, drivers argue that the increase is inadequate. They are advocating for a fare structure that reflects distance and time, rather than discounted rates.

Dennis Nyariki, Deputy Chairman of the Organisation of Online Drivers Kenya (OOD), criticized Bolt for offering a loan product while not addressing the core issue of unfair pricing. “You just can’t offer a loan product while skipping our key grievance, which is unfair pricing,” Nyariki stated.

Bolt previously offered car loans in 2019, providing Renault KWID cars to drivers with a purchase price of KES 1.2 million ($9,296) and monthly instalments of KES 43,000 ($333). The program was halted during the COVID-19 pandemic.

The new loan offering, managed by fintech Hakki Africa, will include vehicles sourced and financed by the company. However, Bolt has not disclosed specific vehicle models or loan terms. Interest rates will vary based on the vehicle type and loan duration.

The OOD has expressed concerns over the new loan facility, recalling issues with aggressive loan collection tactics and repossessions under the previous scheme. Bolt has not yet responded to requests for comment on these concerns.

Some drivers, like Stephen Njoroge, have expressed skepticism about the loan program, citing insufficient earnings to cover vehicle maintenance costs. “The loan facility can’t really help. The money we make is not even enough to service a car,” Njoroge told TechCabal.

Others were unaware of the new loan offering, though Bolt Kenya may promote it further in future campaigns. Timothy Wachira, another driver, noted, “The loan is only good for people who want to enter the business. We already have the cars.”

As ride-hailing companies face mounting pressure from drivers seeking fare increases, Bolt’s reintroduction of car loans may offer limited relief. The company might need to consider further concessions, such as reducing commission rates, to address driver grievances effectively.