The Effect of Government Credit Facilities on Monthly Household Income among Boda Boda Riders in Shinyanga Municipality, Tanzania

This study investigated the influence of government-provided credit facilities on the monthly household income of Boda Boda riders in Shinyanga Municipal Council, Tanzania. The informal transport sector is a key source of employment for youth and low-skilled workers, providing essential mobility and household income. However, Boda Boda riders face challenges such as fluctuating high cost of credit, fuel prices, seasonal demand and unexpected expenses, leading to unstable earnings. To mitigate these challenges, the government has implemented interventions including low-interest loans, cost-reduction and subsidies to enhance financial management, operational efficiency, and business growth. Guided by the Financial Inclusion Theory, the study employed a positivist philosophy, a quantitative approach, and an explanatory research design. From a population of 1,200 registered riders, 112 respondents were selected using stratified random sampling. Data were collected through structured questionnaires, pretest for reliability and validity, and analyzed using descriptive statistics, correlation, and multiple regressions. Descriptive results revealed that riders value affordable interest rates, inclusive eligibility assessments, and flexible collateral requirements. Correlation analysis showed a significant and positive association between credit access and household income, while regression analysis confirmed a significant effect (β = 0.460, p = 0.000). The study also found that awareness and understanding of credit programs varied, limiting utilization for some riders. The study concludes that government credit facilities are vital for income stabilization and livelihood security. The study is beneficial to the government, policymakers, microfinance institutions, and rider associations to enhance income stability and economic empowerment. Keywords: Government Credit Facilities, Monthly Household Income; Boda Boda Riders