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Keke Hire Purchase Business In Nigeria: Model Plan

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Eno Johnson
Eno Johnson is my name, I am an entrepreneur in the making. This blog was birthed because I needed a platform to pen my experience down in Agriculture and business.

Keke hire purchase business is profitable, just like any other higher purchase business. I describe the meaning of hire purchase business in the previous post. An entrepreneur purchases keke and give it to somebody who is ready to use it especially for busiiness. The person will in turn pay for it on installment until he is able to pay the stipulated agreed amount and the keke becomes his own. But he still needs to deposit some money before carrying the Keke for use, it can be 15% of the amount sold.

The entrepreneur will give the keke out twice or more of the price he boughtt the keke in other to make profits. And the buyer accepts the terms because he doesn’t have large sum to purchase directly from keke dealers. The terms of payment can be weekly, forthnightly or monthly. The best option is weekly if you don’t want stories.

This is a good venture because you are making money every week without stress. And you can invest the money that is coming into a business that yield quick returns.

A new keke is about #700,000 now and it’s hire purchase is about 1.2 million depending on the location. First grade keke is between #350,000-#400,000 and hire purchase is between #700,000-#800,000

There are many names given to keke, like keke Maruwa, keke napep, trycycle etc.

Keke hire purchase business is very lucrative because maintenance is cheap and the engine can drive for 5-7 years if proper maintenance is done.

Popular Brands of Keke in Nigeria Market are:

  • Bajaj
  • TVS
  • Paggiio
  • Suzuki

Others are

  • Daylong
  • Zongshen
  • Vespa

TVS is very common and out numbers other brands because they have the highest number of second hand value.

Requirement for Starting Keke Business

Decide on the Brand of Keke to Purchase

It is better to buy something that will last especially when it concerns mobility. It should a brand whose parts are available in the market.

With fairly use keke you can break even quickly but buyers don’t like fairly use. This is because it will not last long as the brand new ones and for something that will become their own they rather go for tear rubber keke.

Since it is your business you have to strike a balance by buying fairly use keke whose body is fine and the engine sound.

Get A Good Driver

Look for drivers that can be regulated because it is one of the major keys to keke hire purchase business. The faster you break even the better the business but in 6 months or within a year you should break even.

The earlier you break even the more established you are in the business. That is why so many hire purchase business entrepreneurs go for fairly use so they can recoup their investment quick with profits. The rider should be able to afford 10% for the initial payment.

Write Agreement

A valid and well written agreement is necessary It doesn’t matter if the person buying is your blood relation, make sure you write agreement and both parties should sign it. The rider has to bring not less than 2 quarantors either their family members who are doing fine or civil servants. So they can pay back your money in case of default.

Because it is hire purchase, the person hiring it takes responsibility for the maintenance which is included in the agreement.

Decide on the Route to Ply

There are some places that keke are not allowed to ply. For instance Government has just stopped the operation of keke napep within Municipal Area Councils in Abuja. In some States tricycle are not allowed in certain places. So chose a route that will not contravene with the laid down rules. And that will also generate plenty money because of plenty passengers available to transit.

Register your Keke

Make sure you obtain all the papers needed for the keke to be used for operation.

Register with Keke Riders Association in the area you wants the keke to ply.

Challenges of Keke Hire Purchase Business

The discouraging side of this business is that keke parts doesn’t have second hand like cars and other engine equipment. Every part of keke is bought brand new that is why to rebuild its engine cost between #100,000-#150,000. Dubious and inexperienced riders are also a major challenge to the business.

The key to succeed in Keke hire purchase business is to get a good keke because a bad keke will bring little profit if at all.

Tips on Keke Hire Purchase Business

Educate your Buyers on the Engine Oil to Use

You must educate the riders to always replace the engine oil filter with original oil; it can be Total engine oil or Mobil. The replacement should be after every 3 weeks or 4 weeks at maximum. Let them know the implication of using cheap and adulterated oil such as palm oil.

Know The Classes of People To Give Your Keke

Some people say that married keke buyers/riders complain a lot because of the responsibility before them and should be avoided. Enthusiastic young men who are just starting out life or those living with parents are said to be the best to use because of the small responsibility in their hands.


Always inspect your keke to determine the extent of damage or maintenance level.
Hire a manager. You can use the chairman of the branch the keke will be plying as your manager. They are used to the business and will manage it successfully for you.

Install Trackers

Install trackers on your keke napep so as to monitor the movement and to know where it is at a particular point in time.

Use Experienced Mechanic

Before buying any tricycle use a keke mechanic for inspection he is in a good position to advice you whether to buy or not. Avoid inexperienced mechanic.
Use a trusted mechanic to inspect and assess the keke before purchasing it.

Where to purchase keke maruwa

Buy from a dealer who has a shop and many keke for choice. Every state has keke dealers. In Akwa Ibom you will find them in Aka Road. Abuja has different places to purchase keke napep and Lagos has many places too.

If you want to know where to buy first grade keke and you are not sure of their location then locate those selling brand new ones first. Tell them you only have money for fairly use, they will direct you where to get a good one.

Hire Purchase Agreement for Keke

  • Provide two quarantors
  • Proof of address
  • Proof of ID card
  • Sign a legal contract with a lawyer
  • Give a copy to the buyer and keep one for yourself

Get a good lawyer to draft a proper contract terms for you, include many clauses to protect your business but it should not be a weight on the buyer.

Profits in Keke Hire Purchase Business

An average keke rider will make at least #6,000-#8,000 daily. The rider makes a return of 18k-20k every week to the assets owner for second hand keke. Weekly account is between #25,000-#30,000 for brand new.

  1. Registration for the keke and other things will cost #50,000.
  2. Buying of keke=350k for second hand
  3. Total 400k
  4. Give out at 700k
  5. Rider should pay 20k every week until it reach when the keke napep will be signed out to him.
  6. 20k×4=80k every month
  7. Within 9 months the rider would have finished payment. And you would have made 350k

If you have up to 3 keke tricycke within a year you would have recorded 1m without stress.

Keke hire purchase business


Hire keke purchase business is profitable if you have a regulated driver. Make you contract a lawyer to draft agreement form for you. The driver should provide not less than 2 quarantors before you accept the person. His address should be traceable. Instal tracker in the keke.

To protect your business and investment you need a car tracker to monitor your vehicles. Call: 08035965405 for car tracker.

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  1. Good day Eno. A big kudos to you for the well written article.

    Please I want you to throw more light on what you meant by “THE RIDER MAKING INITIAL PAYMENT OF 10%”.


    • Hello@Jaaper Assuming you told the driver that the amount you are giving for hire purchase is 100k, the driver will drop 10k of the amount to show commitment then the remaining amount will be soread according to the number of months you agreed on for the final payment before the Keke becomes his

  2. Hello Eno. Abadie? I want to venture into it. But it is someone that wants to buy 2 or 3 tricycles for me to run and pay him back his money with interest within a certain period of time.
    Now I don’t know how to go about it to benefit all the three parties involved (i.e the lender, me and the drivers). Fairly used keke is N400,000 including all the plate number and registrations. Should I give it out for higher purchase? Or just daily returns? At what prices? N1.1m for higher purchase or N2,500 for daily returns? I am at a loss as to what to do. If he buys 2, how do I handle it? So I can pay back, with interest, who gave me the money and also make some few bucks myself during this period of maybe one year or so. Then the tricycles become mine. Please can you use your experience and expertise in this regard to solve this puzzle for me? Thank you

    • @Essien Idioke, please give it out on a higher purchase, 1.1m is not bad. From the money the driver is bringing every week you can be paying the owner from it. Keep a little for yourself, until you finished paying the lender. From the money you save after paying off the lender you use it to buy your own that you may still give out for hire purchase. Remember hire purchase has a time frame after one year or so it becomes the driver property after fulfilling the terms. So just use this one to save money that you will use to build up your business. If it is daily pay the driver will keep giving you excuses It will be police catch am today, tomorrow tyre punture…and so on and so forth

      • Thanks a lot ufan. God bless you. But I was wondering whether giving it out for higher purchase of N1,100,000 after buying it for N400,000 is okay. If it is not too much. I need to pay back and also start mine like you said.

  3. yeah, so i just bought a tvs keke for 740,000, say with plate number and all, 50,000…making 790,000. please like how much can i give it out for hire purchase?

  4. good morning madam Eno Johnson please am a little bit confused about the keke napep hire purchase in abuja because it seems like there is a fixed price most people use in giving out their keke but am just a starter the first keke I bought was N680,000 brand new in august 2019 and I gave it out for N1,150,000 but the keke I bought now is N780,000 so with increment of N100,000 am a little bit confused about how much to give it out for hire purchase thank-you.

  5. Good morning.. please am wisdom from Uyo..Akwa Ibom state.. please I am desperately in need of a keke napep for hire purchase…where can I get it… promised to be dedicated..

  6. My name is Olatunji Blessing, I’m from Osun state but residing in Ibadan, Oyo state, Nigeria. Please I’m in need of keke napep for hire purchase, how can I get it? I promised to be dedicated.


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