Local taxi hailing firm Maramoja is looking to increase car ownership among its drivers in an effort to cushion them from dwindling incomes in the taxi business.
The industry has been facing reduced incomes especially from divers who have to remit money to car owners at the end of the month, at a time that inflation and fuel prices has eaten into the sectors income.
Maramoja CEO Ronald Mahondo, says that the cost of acquiring cars has increased beyond the reach of many drivers exposing them to exploitation by car owners where they have to remit about Sh30,000 a month.
Under the program the firm is looking to issue between 3000 and 5000 vehicles in the next three years and will use their activity at the platform to determine their financial performance rather than bank statements.
“Drivers will have the chance to step into vehicle ownership by making a deposit of approximately Sh100,000, and over the course of 36 months, will have the chance to pay off the vehicle at a rate that matches what they currently spend on vehicle rentals,” said Mahondo.
In the past two months’ car dealers have increased prices by up to Sh330,000 for some units as they pass on new taxes and currency depreciation costs to consumers in what has pushed the popular models beyond the reach of more Kenyans.
This follows a move by Kenya Revenue Authority to increased duty on imported cars to 35 percent from the previous 25 percent, also set the stage for price increments amid the weakening of the shilling.
The 10-percentage point rise on import taxes ended up increasing the other taxes on cars such as the excise duty and value added tax (VAT) as these taxes are loaded and paid cumulatively in that order.
According to Maramoja Transport digital manager Michelle Middii, the "rent-to-own" programme aims to revolutionize the landscape for drivers by offering them a seamless path to vehicle ownership.
"We recognize the pivotal role drivers play in our ecosystem, and 'MARAMOJA Rent-to- Own' underscores our dedication to their well-being," said Michelle Middii, Digital Manager at MARAMOJA Transport.
The ride hailing firm currently operates in Nairobi, Mombasa, Naivasha, Kisumu Eldoret and Nakuru.
Mahondo added that the adoption of electric mobility in the tax industry will be a game changer due to their low maintenance.
