FDC Warns Boda Boda Riders Are Trapped in Predatory Debt

What the report says

The Forum for Democratic Change has warned that many boda boda riders in Uganda are being pushed into unsafe borrowing arrangements that can strip them of their motorcycles, which are often their main source of income. In a media briefing in Kampala on Monday, FDC vice chairperson Robert Centenary said unemployed and underemployed young people are entering the sector through asset-financing companies, micro-credit firms and hire-purchase deals because they lack access to affordable formal credit.

According to the party, the problem is worsened by expensive loans and aggressive debt recovery practices. FDC said some riders lose their bikes after missing payments, even when they have already paid a substantial amount toward ownership. The party also raised concerns about money lenders and digital lending platforms, saying some borrowers face harsh collection methods and may not fully understand the terms they accept.

FDC argued that repossession immediately ends a rider’s ability to earn, making it harder to support families or recover money already invested. The party said the wider credit market is leaving vulnerable Ugandans exposed, including borrowers who risk losing land, homes or livestock if they default. It also warned that financial pressure can deepen unemployment and social hardship.

To respond, FDC proposed a Boda Boda Savings and Protection Cooperative Scheme, cheaper credit for vulnerable groups, and stronger enforcement against illegal lenders. It also called for expanded SACCO-based financing and a revival of broader cooperative banking, saying the core issue is lack of affordable credit rather than debt alone.