Minister Kabbyanga warns Boda Boda riders against predatory loan agreements
The Minister of State for National Guidance, Godfrey Baluku Kabbyanga, has cautioned boda boda riders against signing unfair motorcycle loan agreements, raising concerns about predatory practices by some lenders.
Speaking ahead of a national marathon aimed at raising funds for an ambulance dedicated to accident victims, Kabbyanga highlighted a case where a rider lost their motorcycle after paying millions due to a small outstanding balance caused by personal tragedy.
He commended the riders for organising the marathon, which seeks to address the lack of proper emergency care for accident victims.
Kabbyanga acknowledged their grievances about being mishandled during accidents and the inadequacy of police pickups in transporting the injured.
“The riders feel that proper handling during accidents could save their limbs and lives, allowing them to remain productive. Their plan to purchase a dedicated ambulance is commendable and will ensure more professional care,” Kabbyanga said.
However, he expressed concern over exploitative loan agreements, which often favor lenders.
“These agreements often lack fairness and disregard natural justice. Many riders sign contracts without understanding the terms, exposing them to exploitation. I urge all riders to involve their leaders or legal advisors to interpret agreements before signing,” he advised.
Kabbyanga pledged government support to address these challenges, including engaging stakeholders to ensure fair treatment of boda boda riders, who play a critical role in Uganda’s transport sector.
The chairperson of the Boda Boda Central Division urged the government to crack down on exploitative moneylenders, accusing them of imposing unfair financial burdens on riders.
“Most boda boda riders do not understand the terms of the agreements they sign, leading to excessive payments when purchasing motorcycles. We thank the minister for engaging the President to consider reducing interest rates on loans for riders,” the chairperson said.
He further called for arrests and license revocations for lenders who exploit riders, emphasising the need for stricter enforcement of regulations.
“The President has previously warned against overcharging riders. We appeal to him to ensure enforcement and protect riders from exploitation,” he added.
Ismail Basajjabalaba, chairman of the 2025 Boda Boda Riders and General Road Users Marathon, announced plans for a nationwide event to improve road safety and emergency response for accident victims.
“The marathon seeks to enhance emergency response on the roads. Boda boda riders, being the most affected road users, will lead this initiative to promote road safety and ensure better post-crash care,” Basajjabalaba said.
He noted the lack of a reliable system for transporting accident victims, which often leaves them dependent on bystanders or police pickups.
Proceeds from the marathon will go toward creating a sustainable emergency response system to save lives and provide timely medical assistance.
The initiative will be launched on February 2, 2025, with the exact marathon date to be announced during the launch.
Basajjabalaba called on all road users to support the cause and work together to promote road safety and save lives.
