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Matatu Business
mawinder
#401 Posted : Friday, June 27, 2014 11:25:05 AM
Rank: Elder


Joined: 4/30/2008
Posts: 6,029
matatuman wrote:
Prime wrote:
jerry wrote:
matatuman wrote:
jerry wrote:
Prime wrote:
Mjasirii wrote:
Prime wrote:
Seen a KBZ 52*C 10 Seater this morning on accra road. Meru Shuttle Company. Matatuman, Jerry, Rankaz, Kip and other large-scale incognito private investors (Washiku)... There's hope boys!!!


I would like to know how long it took to acquire the TLB



For 14 seaters ni tricky. higher capacity vehicles ni straight forward as long as you fulfill the other requirements. There's just no clear policy on whether they are being phased out or whether there's conditional acceptance (To fill up each saccos alloted quota). Grey area. Brokers heaven.

KBZ 52*C on the road and my KBY 84*A has no TLB?!! We need national dialogue yesterday!


Quite a number of KBY/KBZ on the Meru-Nairobi, Embu-Nairobi route.... Lets all do our homework, whoever finds out please share, hata kama ni broker. What i am sure about is officially they are not being registered.

I've just spoken to some1 who pretended to be a passenger just to check the TLB of the KBZ 52*C. It has none!



Haaa!! That means they are then on the road illegally. coz they are ferrying passengers fron nai-meru!!


Kuna watu wako roho juu. That risk is simply not worth it. If God forbid that van is involved in an incident resulting in injuries or fatalities, huyo mwenye hiyo gari atauza mpaka chupi.

But i doubt you can operate without TLB for that long even if you are greasing the cops hands.

It is possible, so long as on the crackdown days your matatu keeps off!!!!!!As for taking risks incorporate a company!!!!!!!!
matatuman
#402 Posted : Sunday, June 29, 2014 11:23:52 PM
Rank: Member


Joined: 12/5/2013
Posts: 224
mawinder wrote:
matatuman wrote:
Prime wrote:
jerry wrote:
matatuman wrote:
jerry wrote:
Prime wrote:
Mjasirii wrote:
Prime wrote:
Seen a KBZ 52*C 10 Seater this morning on accra road. Meru Shuttle Company. Matatuman, Jerry, Rankaz, Kip and other large-scale incognito private investors (Washiku)... There's hope boys!!!


I would like to know how long it took to acquire the TLB



For 14 seaters ni tricky. higher capacity vehicles ni straight forward as long as you fulfill the other requirements. There's just no clear policy on whether they are being phased out or whether there's conditional acceptance (To fill up each saccos alloted quota). Grey area. Brokers heaven.

KBZ 52*C on the road and my KBY 84*A has no TLB?!! We need national dialogue yesterday!


Quite a number of KBY/KBZ on the Meru-Nairobi, Embu-Nairobi route.... Lets all do our homework, whoever finds out please share, hata kama ni broker. What i am sure about is officially they are not being registered.

I've just spoken to some1 who pretended to be a passenger just to check the TLB of the KBZ 52*C. It has none!



Haaa!! That means they are then on the road illegally. coz they are ferrying passengers fron nai-meru!!


Kuna watu wako roho juu. That risk is simply not worth it. If God forbid that van is involved in an incident resulting in injuries or fatalities, huyo mwenye hiyo gari atauza mpaka chupi.

But i doubt you can operate without TLB for that long even if you are greasing the cops hands.

It is possible, so long as on the crackdown days your matatu keeps off!!!!!!As for taking risks incorporate a company!!!!!!!!


I am aware of all that, and i doubt they announce crackdown days on radio or print media - at least not where i come from. This is a highly dynamic business.
Prime
#403 Posted : Friday, July 11, 2014 10:41:43 PM
Rank: Member


Joined: 2/27/2011
Posts: 518
Hi guys, i know this particular cars may not be available online but there's something you should note...

http://www.papera.com/detail.php?ref=83877

http://www.japaneseusedc...JnJ0PVVTRA==&rt=USD

In essence, two different vendors are selling the same car. Papera will usually refer to such as an associate dealer stock. But please note the differences in pricing. Whereas Tomisho will sell the unit at FOB USD 7,600, papera will sell the same unit at FOB USD 9,700. Cheeky aint it? Now check how many units from Papera with the whitened number plate are actually listed in Tomisho's site but with an extra 2,000-4,000 additional USD levied above Tomisho's prices... Now you know
Rankaz13
#404 Posted : Saturday, July 12, 2014 10:28:54 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Prime wrote:
Hi guys, i know this particular cars may not be available online but there's something you should note...

http://www.papera.com/detail.php?ref=83877

http://www.japaneseusedc...JnJ0PVVTRA==&rt=USD

In essence, two different vendors are selling the same car. Papera will usually refer to such as an associate dealer stock. But please note the differences in pricing. Whereas Tomisho will sell the unit at FOB USD 7,600, papera will sell the same unit at FOB USD 9,700. Cheeky aint it? Now check how many units from Papera with the whitened number plate are actually listed in Tomisho's site but with an extra 2,000-4,000 additional USD levied above Tomisho's prices... Now you know


smile smile Kumbe sio wakenya pekee wana haya mambo. Some time in early last year, my pal and I decided to go window shopping for a car. I recall we visited some yards on Uhuru Highway, literally went in to all on Ngong' road, as well as a few in the Karen neighborhood. We found more or less the same story where one vehicle would be listed for sale by more than one vendor and all at different prices.
Life is like playing a violin solo in public and learning the instrument as one goes on.
Rankaz13
#405 Posted : Monday, July 21, 2014 5:19:00 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
@Prime, hebu njoo uone how your mboys are mbehaving!Laughing out loudly Laughing out loudly

Angry driver stops matatu to fight nagging tout over Sh30



Quote:
“Kai ureciria ndiaga Mahiga mundu? Hee mbeca ciakwa mani (Do you think I survive on stones. Give me my money, dude!)”, snarled the tout...
Laughing out loudly Laughing out loudly
Life is like playing a violin solo in public and learning the instrument as one goes on.
MuzeeMumonja
#406 Posted : Saturday, August 02, 2014 9:04:48 AM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Hi Members. I've been following this thread and need your advice. I have saved about 2.2 Million shillings and would like to get into the mat business. I have 3 options although you can propose more i.e.

1. Buy two old 14 seater mats. Maybe deploy these on long distance e.g. with 2NK, MTN, NENO, NNUS e.t.c.
2. Import a Toyota 7L, although from what I have seen in this forum, these are not getting TLB, thus a relatively weak option.
3. Look for a partner or talk to the bank for financing of a 33 seater for town service in Nairobi, possibly with Metro trans or Super Metro.

Thanks in advance guys and all advice most welcome.
matatuman
#407 Posted : Saturday, August 02, 2014 9:31:24 PM
Rank: Member


Joined: 12/5/2013
Posts: 224
MuzeeMumonja wrote:
Hi Members. I've been following this thread and need your advice. I have saved about 2.2 Million shillings and would like to get into the mat business. I have 3 options although you can propose more i.e.

1. Buy two old 14 seater mats. Maybe deploy these on long distance e.g. with 2NK, MTN, NENO, NNUS e.t.c.
2. Import a Toyota 7L, although from what I have seen in this forum, these are not getting TLB, thus a relatively weak option.
3. Look for a partner or talk to the bank for financing of a 33 seater for town service in Nairobi, possibly with Metro trans or Super Metro.

Thanks in advance guys and all advice most welcome.


See my 2 cents below but do your research.
On 1
2.2M might get you two decent 14 seaters in fair condition, but you might need some extra cash for any surprises. Third hand cars come with all manner of issues - all the 3rd hand matatus i bought at one point or another needed replacement of either gear box, diff, fuel tank or engine overhaul.Good thing is you rarely have to replace all unless you got a bad deal.This non registration has inflated prices e.g. a 5L KBJ-KBL in above average condition would cost you around 1.2M. If you got this right however it would be a good bet since you have income from 2 vehicles.
On 2
There is hope if you are patient, word from reliable sources is there will be a window to register. And with 2.2M you will have some change. A diesel should cost around 1.8 to 1.9max, A petrol van about 1.5 to 1.7Max.
On 3
Depends on how well you know your partner and how professionally you both manage the biz. From experience, i would not partner with an individual but if you found someone honest who shares your passion, then this would be the best. BTW, i think if you have 2.2M you can approach a bank for asset financing, they usually ask for 30%. I am not familiar with town service though. This option is more promising than the above two but be ready to get your hands dirty.
Perhaps Kimiri can share some light on this.

subaru
#408 Posted : Sunday, August 03, 2014 5:38:59 AM
Rank: Member


Joined: 3/15/2010
Posts: 391
Location: nairobie
@ matatuman option 3 looks promising what do u mean by getting ones hands dirty ?
matatuman
#409 Posted : Sunday, August 03, 2014 11:02:36 AM
Rank: Member


Joined: 12/5/2013
Posts: 224
subaru wrote:
@ matatuman option 3 looks promising what do u mean by getting ones hands dirty ?


What i mean is don't just assume that Metrotrans or whichever other company or individual will manage your vehicle for you. Be actively involved and understand the nitty gritty, dont just pick a driver coz you've been told he is a good driver. Dont just accept being told that it gives 10k at the end of the day after all expenses. Sometimes you get zero...Understand how it all works, i.e. how many trips vehicle can do on a good day, how much fuel it consumes for say one trip or on a full tank. Basically understand your chosen route inside out and dont expect someone else to do that for you. In short, its your money you are investing, so the buck stops with you. At the end of the day, if you have a 33 seater on the road, it basically means you've entrusted a class 8 drop out with an asset valued at around 4.8M. Excuse my french.
MuzeeMumonja
#410 Posted : Sunday, August 03, 2014 11:30:38 AM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Thanks Matatuman.

What if I just buy one very good third hand for the long distance shuttles..10 or 11 pax and use established SACCOs like 2NK, NNUS etc? I have a very tasking day time job that will not let me be available at all during weekdays.
double eem
#411 Posted : Sunday, August 03, 2014 12:36:45 PM
Rank: Member


Joined: 12/12/2007
Posts: 24
MuzeeMumonja wrote:
Thanks Matatuman.

What if I just buy one very good third hand for the long distance shuttles..10 or 11 pax and use established SACCOs like 2NK, NNUS etc? I have a very tasking day time job that will not let me be available at all during weekdays.

@mzee1
The issues @matatuman is raising are the true position.If u have no time to manage your investment(mat) invest elsewhere. Dont be hoodwinked by ati well managed saccos etc.The management in most cases are the same touts who have graduated with time hence posses the same character like the drivers and touts.the interest of the owner counts last in the hierarchy.Most of the guys who manage to buy a second mat from the initial investment are practically on the ground running these matatus.By the way have you enquired how much a 2NK shuttle(11 pax) makes for a trip to Nyeri-nrb and how many trips per day on average? Tafakari hayo and the gava is hell-bent to squeezing every cent from the sector.
MuzeeMumonja
#412 Posted : Sunday, August 03, 2014 2:04:27 PM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Asante sana double eem. I've not enquired, only making estimates of around 3K per day. Looks like I will have to get alternative investment options :(.
icecube
#413 Posted : Sunday, August 03, 2014 2:54:25 PM
Rank: Member


Joined: 1/2/2008
Posts: 268
Location: Nairobi
matatuman wrote:
subaru wrote:
@ matatuman option 3 looks promising what do u mean by getting ones hands dirty ?


What i mean is don't just assume that Metrotrans or whichever other company or individual will manage your vehicle for you. Be actively involved and understand the nitty gritty, dont just pick a driver coz you've been told he is a good driver. Dont just accept being told that it gives 10k at the end of the day after all expenses. Sometimes you get zero...Understand how it all works, i.e. how many trips vehicle can do on a good day, how much fuel it consumes for say one trip or on a full tank. Basically understand your chosen route inside out and dont expect someone else to do that for you. In short, its your money you are investing, so the buck stops with you. At the end of the day, if you have a 33 seater on the road, it basically means you've entrusted a class 8 drop out with an asset valued at around 4.8M. Excuse my french.


I agree. I am sure the interest of the matatu owner comes last in the management of these saccos. With a demanding 8-5 day job, matatu business is a headache and stressful. Matatu business needs serious hands-on involvement. Hearsay cannot be a basis of investing millions.
matatuman
#414 Posted : Sunday, August 03, 2014 8:09:56 PM
Rank: Member


Joined: 12/5/2013
Posts: 224
MuzeeMumonja wrote:
Thanks Matatuman.

What if I just buy one very good third hand for the long distance shuttles..10 or 11 pax and use established SACCOs like 2NK, NNUS etc? I have a very tasking day time job that will not let me be available at all during weekdays.


I hate to burst your bubble but there is nothing like a well managed sacco.
washiku
#415 Posted : Sunday, August 03, 2014 8:50:47 PM
Rank: Chief


Joined: 5/9/2007
Posts: 13,095
Rankaz13
#416 Posted : Tuesday, August 05, 2014 11:00:34 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
matatuman wrote:
MuzeeMumonja wrote:
Thanks Matatuman.

What if I just buy one very good third hand for the long distance shuttles..10 or 11 pax and use established SACCOs like 2NK, NNUS etc? I have a very tasking day time job that will not let me be available at all during weekdays.


I hate to burst your bubble but there is nothing like a well managed sacco.


@Muzee, the day-to-day running and monitoring of your investment is entirely your responsibility that cannot be entrusted to an often 'remote' sacco management.

Remember too that, quite often, sacco officials are themselves matatu operators (i.e. they own matatus in the same sacco) and are thus your direct competitors as individuals.
Life is like playing a violin solo in public and learning the instrument as one goes on.
Rankaz13
#417 Posted : Tuesday, August 05, 2014 11:11:50 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
MuzeeMumonja wrote:
Asante sana double eem. I've not enquired, only making estimates of around 3K per day. Looks like I will have to get alternative investment options :(.


Before you proceed, I'd advise you to take some time off, walk around town at the various stages to interview the operators/drivers in your choice routes. Personally, how I did it was I'd take a ride in a matatu operating on the route I was researching on, then engage the driver in some chit-chat over the course of the journey using some disguised queries in an attempt to figure out not only the daily takings but other challenges and opportunities as well. Upon getting to my destination, I'd quickly head somewhere and jot down all I could recall from the conversation (I have a photographic memory smile but do I say) and file that away.

Reason I used that approach was that quite often, matatu business is very time sensitive, what with competing for passengers, trying to hide from kanjos, etc. So it can be quite a tall order to get someone to take their time to talk to you for say 30-60 mins while their minibus or van is empty. Ngumu sana. Sacrifice some time (perhaps during your annual leave?) and dedicate it to that.

The other strategy I used was to enjoin a few of my relatives who were then college students at THE in my dream. They greatly assisted in researching on town service routes.
Life is like playing a violin solo in public and learning the instrument as one goes on.
Rankaz13
#418 Posted : Tuesday, August 05, 2014 11:34:11 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
matatuman wrote:
MuzeeMumonja wrote:
Hi Members. I've been following this thread and need your advice. I have saved about 2.2 Million shillings and would like to get into the mat business. I have 3 options although you can propose more i.e.

1. Buy two old 14 seater mats. Maybe deploy these on long distance e.g. with 2NK, MTN, NENO, NNUS e.t.c.
2. Import a Toyota 7L, although from what I have seen in this forum, these are not getting TLB, thus a relatively weak option.
3. Look for a partner or talk to the bank for financing of a 33 seater for town service in Nairobi, possibly with Metro trans or Super Metro.

Thanks in advance guys and all advice most welcome.


See my 2 cents below but do your research.
On 1
2.2M might get you two decent 14 seaters in fair condition, but you might need some extra cash for any surprises. Third hand cars come with all manner of issues - all the 3rd hand matatus i bought at one point or another needed replacement of either gear box, diff, fuel tank or engine overhaul.Good thing is you rarely have to replace all unless you got a bad deal.This non registration has inflated prices e.g. a 5L KBJ-KBL in above average condition would cost you around 1.2M. If you got this right however it would be a good bet since you have income from 2 vehicles.
On 2
There is hope if you are patient, word from reliable sources is there will be a window to register. And with 2.2M you will have some change. A diesel should cost around 1.8 to 1.9max, A petrol van about 1.5 to 1.7Max.
On 3
Depends on how well you know your partner and how professionally you both manage the biz. From experience, i would not partner with an individual but if you found someone honest who shares your passion, then this would be the best. BTW, i think if you have 2.2M you can approach a bank for asset financing, they usually ask for 30%. I am not familiar with town service though. This option is more promising than the above two but be ready to get your hands dirty.
Perhaps Kimiri can share some light on this.



Very valid points raised by @matatuman. The current uncertainty has really skewed market prices and though NTSA seems to be in favor of lifting the 'ban', the issue is beyond them and seems like it's headed to the cabinet for a final decision.

Third hand mat, be very careful on that. Have a very good mechanic, one with a keen eye for detail, to accompany you when doing such. Incidentally, my experience mirrors @matatuman's. There's one unit I'd got in 2011 which was in perfect condition, accident free, etc. Nikanunua, nikaitayarisha (took about a month - never do this in a hurry) kisha ikaanza kazi. Shock on me, on the second week of operations, the gearbox failed (issues to do with top-shaft and couter-gear) and I had to replace with a new one at 54k. About 10 or so months later, an engine overhaul was called for. So yes, when he tells you to have some spare cash aside for any surprises, please listen. As always, I advise to have spare cash sufficient to buy a complete engine (whose prices currently range from 280k to 450k depending on type and specs).

One final thing, as you research, don't forget to research on a good reputable and reliable garage where you will be servicing and repairing your vehicles. Pay them a visit too and see how they do their work, enquire on some charges for this or that, etc. This is very important especially for yo with a demanding day job that keeps you occupied. For this, since I did not have a vehicle at the time and therefore knew no mechanics, I enlisted the help of a relative who happened to own one at the time. Being a man in uniform, he did it all under cover and went as far as getting a quotation. Once I finally got the unit, nilienda tu nayo kwa garage na ile quotation nikawauliza 'hii handwriting ni ya nani?' The I gave them the car to work on at the prices they themselves had quoted, after slight negotiations. So far, so good.

Incidentally, if you choose to buy a locally pre-owned unit, if you can, insist on visiting the garage where it's ordinarily serviced/repaired and talk to the specific mechanics who handle it. They may have some valuable insights that the seller may be unwilling to reveal. This once saved me some potential headache.

And, when you take your mech to view some cars, please pay him a stipend for taking his time. That is over and above meeting his fare and lunch costs.
Life is like playing a violin solo in public and learning the instrument as one goes on.
MuzeeMumonja
#419 Posted : Tuesday, August 05, 2014 9:38:52 PM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Thanks Rankaz, much much appreciated. Pity, I am taking my thoughts off matatu business for now, maybe I'll invest in stocks or something.
Rankaz13
#420 Posted : Wednesday, August 06, 2014 9:41:21 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
MuzeeMumonja wrote:
Thanks Rankaz, much much appreciated. Pity, I am taking my thoughts off matatu business for now, maybe I'll invest in stocks or something.


Not so fast. Challenges are just but opportunities by another name. Do some basic research first then make an informed decision. All the best lakini.
Life is like playing a violin solo in public and learning the instrument as one goes on.
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