Pole sana mr Ali. No business is easy but Matatu is certainly crazy. You realize that in Mat business nearly everybody you deal with is a crook including the crew itself, police, mechanics, and Mungiki (worst of all). Yet, one thing is for sure: most Kenyans can hardly ever dream of becoming rich (sometimes even making the ends meet) with the kind of salaries they get from their regular jobs. In my short life I have done a number of businesses including mat alongside being formally employed. On some occasions I have burned my figures but I have always valued the lessons that I get. One of the key things that one needs to get right in many businesses (not only mat) is identifying and retaining good workers. If you don’t do this in the case of mat, these guys will milk you dry within no time.

For mats, I have also realized that you need to invest in building networks/relationships that ensure limited disruption of the business. For instance, if you are not around and your vehicle breaks down you should have a mechanic who can fix it nicely and fast even without being paid on the spot. It is the same case with police harassment. You have to make sure that you know some of them to avoid inconvenience. Interestingly this may not necessarily mean you spend a lot of money in bribing them. For example, a year ago my manager (who also doubles as one of my drivers) realized that besides each vehicle paying some ksh200 everyday to some policemen here in Nairobi, they were still targeted during those crack down/operations. So he entered into an agreement with a fairly senior man in blue that they get paid ksh1,000 lump sum per vehicle once every week and in turn the vehicles do not stop even when flagged down. Clearly, this is corruption but what can you as an investor do?

I can give you a short story. At one time one of my vehicles got impounded but when I went to the police station, the arresting officer told me that he actually wanted to know who the vehicle owner was. Off course we had to buy him some “tea” in order for the vehicle to be released but you can bet that since then we have used his help on a number of occasions. This is the unfortunate reality of doing business in Kenya. Ask bar owners and you will hear similar stories. Cheers and best of luck in whatever you decide to do.

well said and put sparkly

Hey there,

I have the same trouble coming up with a viable idea even after all the money loss to employee or other officials.

I think farming is a good idea though, the fact is as long as there are lives there is a demand for the produce. it is just a matter of figuring out what to farm, where to sell it and how to do so cheaply!

Check out some fish farming idea i got from my Uncle on my blog!

http://kenyanenterpreneur.blogspot.com/

b yorslf bro 4 passion neva fails u.....

Millionaires and billionaires have levels of confidence that borders on arrogance and that is what sets them apart. I take note of the confidence Bw Ali you got and am impressed. My story is kinda interesting coz I did farming, burnt my fingers, did stocks burnt fingers again till I landed on real estate and thinbgs have never been the same again. I learnt valuable lessons out of the failures and it never occured to me that I'd quit trying. Push on. The phase you are in is very neccessary for future success. The moment you successfully negotiate out of this, you'll be primed for success.