Access to credit remains a critical enabler of economic participation for informal sector workers in developing economies. For boda-boda operators in Kenya, loans from financial institutions facilitate motorcycle acquisition and business sustainability. However, loan repayment default threatens both borrower livelihoods and lender financial health. This study examined the effect of loan repayment default on repossession of assets among boda-boda operators in Kisumu County, Kenya. The research was anchored on the Credit Default Theory and adopted a descriptive correlational research design. The target population comprised 1,200 registered Boda-boda operators with active financial institutions loans in Kisumu Central Business District, from which a sample of 300 respondents was derived using the Yamane formula. Primary data were collected using a structured questionnaire, achieving an 82% response rate. Descriptive statistics including means and standard deviations, as well as inferential statistics (Pearson correlation and regression analysis), were used for analysis. Findings revealed a moderate level of loan repayment default and a high level of asset repossession among respondents. The correlation analysis showed a strong positive relationship between loan repayment default and asset repossession. The regression model indicated that loan repayment default explains a substantial proportion of the variance in asset repossession. The study concluded that loan repayment default significantly affects asset repossession, with late payments and default frequency being critical predictors. Recommendations include flexible repayment structures, financial literacy programmes, and fair debt collection practices.