Kenya’s transport sector recorded a strong recovery in 2025, driven by a sharp rebound in motorcycle sales and asset financing, according to official data and industry figures from local asset fintech firm Watu.
Data from the Kenya National Bureau of Statistics (KNBS) show the broader automotive market gained momentum toward the end of the year, with newly registered vehicles rising to 27,219 units in November 2025 from 25,167 in October.
Motorcycles accounted for the bulk of the growth. Registrations rose steadily through the year, from 12,456 units in January to 15,699 units in August, before peaking at 18,839 units in November. Overall, motorcycle registrations were up 19.8% in the first 11 months of 2025, KNBS said in its November Leading Economic Indicators report.
The official figures mirror trends seen by Watu, a Nairobi-based asset financing company focused on mobility and productive assets. The firm said demand for motorcycles remained resilient as the vehicles continue to underpin small businesses and public transport services across the country.
“Motorcycles are still the backbone of many SMEs and public service providers,” said Erick Massawe, Watu’s Kenya country manager. He added that alongside traditional internal combustion engine models, electric two-wheelers were gaining traction.
By the end of 2025, Watu Credit had financed about 8,000 mobility assets, including electric motorcycles, Massawe said.
“We acknowledge that the data by KNBS provides a good glimpse of the overall market and reflects our own pace of growth at Watu Credit,” he said.
Founded in 2015 to support Kenya’s boda-boda and tuk-tuk sectors, Watu has since expanded its operations to eight African countries. In 2025, the firm entered Latin America, launching operations in Brazil and Mexico, becoming the first Kenyan-heritage international business to do so.
Watu attributes its growth to its focus on impact financing for customers typically excluded from traditional banking due to limited credit histories.
“Traditional financing often excludes people without a credit history,” Massawe said. “By removing unnecessary barriers, Watu empowers more people to access life-changing assets — whether for mobility, business, or digital connectivity.”
The recovery in motorcycle sales underscores the sector’s role in employment creation and last-mile transport, as Kenya’s economy continues to rely on two-wheelers as a key driver of grassroots growth.
