Getting a Motorcycle #1: Kibaluwa & the Mugagga
By Geofrey Ndhogezi
The steady rise of motorcycles in Uganda over the past thirty years from a few thousand private owners to over a million boda boda riders across the country was made possible by the creation of a semi-formal rental system known as kibaluwa in Kampala, through which most riders have historically accessed their motorcycles.
In the kibaluwa system, wealthier individuals purchase motorcycles and rent them out to trusted boda riders, who pay the owners on a daily or weekly basis. It creates a semi-formal employer-employee relationship and the boda riders in this category usually refer to the motorcycle owner as their boss or mugagga (literally “rich person” in Luganda).
The kibaluwa system also includes short term borrowing, such as when a boda rider allows a fellow rider to use his motorcycle for a few hours and return it. One motorcycle can be shared by two or more boda riders, who take turns taking trips on the motorcycle. Though many boda riders own motorcycles today, the kibaluwa system is still common across the country and it points to the many non-boda riders that are directly involved in and profiting from the boda business.
How do boda riders acquire motorcycles in the kibaluwa system?
To be able to rent a motorcycle through the kibaluwa system, a rider must be known either to the mugagga or to the people who connect him to the mugagga. If he gets kibaluwa through a middleman, he pays them an amount agreed upon prior to the deal.
Usually, the mugagga’s motorcycles are readily available so the rider gets the motorcycle as soon as they finish discussing and/or signing an agreement. Sometimes, a mugagga finds a willing rider before actually purchasing the motorcycle, in which case the mugagga tells the rider to wait a few days as he prepares to buy one, and they sign the agreement the day the rider takes the motorcycle.
The kibaluwa agreements.
Agreements in the kibaluwa system are either oral or written. In both instances there must be at least one witness. Sometimes, where the rider gets the motorcycle through middlemen, those middlemen are witnesses. The terms and conditions agreed upon usually include:
Amount of money paid daily or weekly.
The standard rent is 10,000 UGX ($2.8) per day for six days a week, with the seventh day’s charge retained by the rider for oil change. Outside of Kampala, in smaller cities and rural areas where riders have lower revenues, the rider may have two days free a week.
In rare cases, the rider may be given a few tasks either at the mugagga’s home or at mugagga’s workplace in place of cash payment. Boda riders in this category do not have to pay any money to the mugagga. All they do is finish the daily tasks and use the motorcycle for their own benefit the rest of the day. Common tasks given to such boda riders include either carrying mugagga’s children to school and back or carrying the mugagga to his workplace and back, or working part-time for the mugagga distributing merchandise and collecting money from clients.
Where the rider is supposed to pay cash, the method of payment is agreed upon — either sending via mobile money or physically depositing cash with the mugagga.
Operational area.
Bagagga (plural for mugagga) usually prefer boda riders whose stages and homes are near their homes, where relationships are easier to develop and monitor and the rider will be easy to find. The mugagga may also require riders to remain closer to the mugagga’s home area so that they may be able to fulfill scheduled demands, such as children’s school pickups. The owner may also demand the rider not share the motorcycle with anyone else. Sometimes the boda riders are supposed to park the motorcycle at the mugagga’s home every night or at the nearest paid parking lot. The usual amount paid at the night parking lot is 1,000 UGX ($0.28), paid by the rider.
Mechanical issues.
Mechanical expenses in the kibaluwa system are shared according to the agreed terms and conditions. Oftentimes, a simple formula is used, whereby any mechanical expense less than 10,000 is incurred by the rider, but bigger mechanical expenses are incurred by the mugagga.
Motorcycle withdrawal.
In the kibaluwa system, the rider never gets ownership rights unless the agreement changes to hire purchase, but he can use the motorcycle until he either buys his own or until he fails to meet the mugagga’s demands. Importantly and most inconveniently for the rider, the mugagga sometimes withdraws the motorcycle from the rider without prior notice.
Also, where the mugagga uses the motorcycle as collateral for bank loan and fails to pay, the loan officer may impound the motorcycle and leave the rider helpless. Such circumstances usually cause distress to the rider.
A lot of boda riders who own motorcycles today have got kibaluwa before and they never want to get it again because, they say, the bagagga mistreated them. As well, people who ever gave motorcycles to boda riders say that doing it again is a bad idea.
The relationship between the bagagga and boda riders can be contentious. The most common bone of contention is usually failure of one or both parties to respect the agreement. Sometimes boda riders agree to terms and conditions imposed by the bagagga that are very difficult to follow, only because riders have nowhere else to get the motorcycles — and as soon as they get the motorcycles they start working contrary to the rules. For example, if the mugagga wants the rider to park at 6pm to avoid the dangers of night-time riding, yet the rider continues to work up to 9pm to take advantage of the peak hours of business, the mugagga may cancel the agreement.
Transition from kibaluwa to ownership.
Oftentimes a rider who starts with kibaluwa ends up owning the motorcycle when the mugagga agrees to change the kibaluwa agreement into a lease-to-own agreement. In the new agreement the upfront deposit has already been given, but the weekly amount may slightly increase, and all mechanical expenses including oil change become the rider’s responsibilities. They also agree on the length of period for paying weekly instalments.
The rider’s failure to pay to the owner’s satisfaction may result in the owner impounding the vehicle. When the motorcycle is impounded, it’s kept at the mugagga’s home until the rider pays arrears, along with any penalties included in the agreement.
If the rider pays successfully, the mugagga gives him the logbook plus proof of purchase, which is usually another written agreement sometimes endorsed by LC1 stamp and witnesses’ signatures. The rider pays for the stamp and the witnesses, and leaves the kibaluwa system behind for full ownership of their money-making motorcycle
