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Matatu business
Rank: Member Joined: 3/12/2008 Posts: 215
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I fully agree with tmatekwa. I have been in the biz for about four years and I can not complain about how I am doing. I ventured into the business to ensure that I had a source of income in case I was retrenched which was quite common in the place where I work. When starting,one can experience very expensive lessons including unscrupulous financiers,crew,mechanics,police etc. With experience,however,the returns can be quite handsome. To me the mat biz is just like many other businesses.
kn
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Rank: Veteran Joined: 6/11/2008 Posts: 892
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Thanks fellow members. tell me one thing,I have a KAP I am being sold for as low as 200k,Nissan QD 32,a KAZ I am being sold for Ksh 890k,Toyota shark,between these two,which should I go for? With KAP,I have been advised to buy it,‘burn it’ as they say and get new things,ati by the time it become new again,it will have taken another 150,so the total will be like 350 and it will be brand new,for the shark,it is ready for work,as in,you get it today and use it kesho. I have an experienced crew and with a nice record,but the challenge is that I am an office person and even if they got arrested,I would not be available for them I am more than a conqueror in Christ Jesus For in him (Jesus) we live and move and have our being-Acts 17:28
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Rank: Member Joined: 10/12/2006 Posts: 24
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What are you willing to risk?
If you are cautious go for the older nissan. However note that u may sumbuka due to frequent breakdowns. But tis a lower risk while you learn the ropes.
A newer model should give less stress when it comes to repairs hence more value. It costs more than twice the price of the older vehicle... a higher risk,just make sure you take insure comprehensively!
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Rank: Veteran Joined: 6/11/2008 Posts: 892
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I guess I am also cautious to put an M in an area I have no experience in,but with 350k,I can still get something and get myself a foothold and some experience. Between city route and middle distance routes,what servers better? I am more than a conqueror in Christ Jesus For in him (Jesus) we live and move and have our being-Acts 17:28
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Rank: Member Joined: 10/1/2007 Posts: 232
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Avoid the shark,unless you are planning to operate on long distance or medium distances. It's spares are very expensive. Avoid kaz. This is a thing that is about to clock 2years,a time when overhaul of major systems is due. It will chew some 100k in the next 12 months,and this is on the lower end. To add salt to injury you will be lucky to dispose it at 600k come same time next year. As for the kap just make sure that the chassis is still intact. Ie no welding no bends no cracks. Be prepared to overhaul front suspension,engine,transmission,electrical and brakeing,engine cooling systems,reinforce the floor and front bumper. Get good body work and interior decor. A music system without the bass speaker.(you may install it latter after knowing your way around.). A video system,some fancy wheels,then viola! You are ready for business. Your 150k may be inadequate. So push a harder bargain,like 120k to 150k. Give them a target of 3k daily. Operate the thing for 12 months and dispose at 300k o.n.o. Best town routes 105,30,12,33 well organised. Most chaotic 46,2,111,8,4,56,and any other route dominated by touts and kissi. Most lucrative 125,102,2,111,110,and any other route not dominated by citi hopper. Most dangerous routes 23,2,102,and any route controlled by mungiki. Frequent hijackings,strikes. The golden rule. MATATU CREWS ONLY HAVE EXPERIENCE ON ONE OR TWO ROUTES. SO DO NOT ATTEMPT TO EXPORT OR IMPORT ANY.
Osama bin Laden
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Rank: Veteran Joined: 6/11/2008 Posts: 892
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@tmatekwa Wow,this is getting better,thanks a million. Kindly tell me,how much will it cost me to overhaul the thing? There is what they call 'kurudisha kwa jiko' where it comes back shaped,new in all aspects apart from the number plates? Whats the rough estimate? How much will it cost me to put that mat on the road? Lets assume the owner sells it at 130k I am more than a conqueror in Christ Jesus For in him (Jesus) we live and move and have our being-Acts 17:28
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Rank: Member Joined: 10/1/2007 Posts: 232
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You being a novice in the game,you are likely to be taken advantage of by mechanics and brokers. On my part 200k may do. However,you need the help of a mechanic to evaluate what you intend to buy. I suggest that you go for a ready made thing,with the same amount.
Osama bin Laden
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Rank: Member Joined: 6/3/2008 Posts: 29
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Go long distance with Molo Line or Great Rift,those shuttles that are managed professionally. Town service? They'll do you in from all directions. Ati cops,mechanics,crew,mungiki,e.t.c Hiyo mathree itakua yako na wao. Only the log book is yours.
Those who say it cannot be done should not get in the way of those who can!
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Rank: Member Joined: 2/19/2007 Posts: 1
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i tend to think the reason that most matatu dont do well its coz they are not run proffesionally like other biz,take for instance the buses companies that ply the western route they make alot of money per day especially on festive season and weekends but coz of mismanagement after some years they are no where to be found
kigee
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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You cannot rely on one matatu for your financial needs. To make it big,you need to have another regular income stream or start with at least four vehicles like Citi Hoppa and Double M did [a bad idea if you are new in the trade]. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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