In a groundbreaking move set to transform the ride-hailing industry in Africa, Bolt, the continent's leading on-demand mobility company, has announced a strategic partnership with Hakki Africa, a prominent microfinance institution.

This alliance is aimed at enhancing the financial stability of Bolt’s drivers by offering accessible vehicle financing solutions.

Under this new collaboration, Bolt and Hakki Africa plan to deploy 1,500 vehicles over the next 18 months to eligible drivers on Bolt’s platform.

These drivers will benefit from reduced down payments and performance-based incentives. The initiative is expected to significantly increase the earnings of participating drivers while easing their path to vehicle ownership.

Hakki Africa, known for its innovative credit scoring and fintech solutions, will play a pivotal role in this partnership.

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By providing financial services to taxi drivers who often face barriers to traditional banking, Hakki Africa is making vehicle ownership more attainable.

This development addresses a crucial gap in financial accessibility for drivers in Kenya, where many struggle to qualify for conventional loans due to stringent bank criteria.

Research underscores the importance of vehicle ownership for ride-hailing drivers, highlighting a disparity in earnings between those who own their vehicles and those who rent.

A notable study in Johannesburg revealed that drivers who rent cars face substantial financial pressures from rental fees and platform commission costs, which erode their net income.

Linda Ndungu, General Manager of Rides at Bolt, emphasised the significance of the partnership:

“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," Ndung'u stated.

"This collaboration will not only enable more drivers to own their vehicles but also enhance their earnings, reduce operational costs, and foster a more prosperous driver community. Together, we are driving change and ensuring that our drivers can thrive in the ride-hailing industry.”

In Kenya and other developing nations, access to financial services is often restricted by stringent credit requirements.

This problem is particularly acute for ride-hailing drivers who are eager to own their vehicles but are frequently unable to secure bank loans.

Consequently, many drivers resort to renting cars, which over time proves more expensive than purchasing one outright. This financial strain impedes their ability to improve their economic situation.

Yumeka Abe, Director at Hakki Africa, expressed enthusiasm about the partnership.

“We are delighted to partner with Bolt in order to provide quality vehicle financing services to drivers on their platform. Our credit scoring system helps gig-workers, who previously couldn't access financial services, to establish credit and receive loans. We consider them as essential for Kenya's economy and its growth," Abe said.

Abe further explained, "Drivers who take loans from us and can own a car after three and a half years of repayments. Once they pay off the loan, they can increase their net income as drivers, sell the car to start a new business, or pursue other opportunities.”

This collaboration marks a significant milestone in providing sustainable solutions for ride-hailing drivers, offering them a path to financial stability and vehicle ownership that could redefine their future in the industry.