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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Prime wrote:jerry wrote:Prime wrote:Hi Guys. I have a pal who is seroiusly searching for a diesel 7L in good shape and fair price. Compliant and on the road. Incase any one has an idea of one somewhere kindly get in touch with me on this forum. I would have proposed giving away my KBY at 2M were it not for what I have said in post #578. Its ok Jerry. He finally got one leo. An ex-funeral van but in pretty good shape. Out of curiosity, whats your manager doing differently to warrant your current joy? ion im looking for a 3L/5L in good shape. The manager is a driver on same route so he can't be cheated. 5L are going for between 1M and 1.1M. A friend bought one (private and ex-SCOM) at 900k. The opposite of courage is not cowardice, it's conformity.
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Rank: User Joined: 9/6/2013 Posts: 1,446 Location: In a house
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For a long time I have deeply thought about venturing into matatu business and I'm considering long distance, say Kakamega to Nairobi. The matatu in question is going to be financed by a bank, about 70% of it and I'm considering a high-roof hiace commuter. Preferably manual and diesel. What might be the total injected capital given that I may not import directly from Japan? What are my chances of recovering the capital in about 2 years? Am I taking too much of a risk? Kindly advice.
NB: Currently, I have some saloon cars on hire. So far so good.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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urstill1 wrote:For a long time I have deeply thought about venturing into matatu business and I'm considering long distance, say Kakamega to Nairobi. The matatu in question is going to be financed by a bank, about 70% of it and I'm considering a high-roof hiace commuter. Preferably manual and diesel. What might be the total injected capital given that I may not import directly from Japan? What are my chances of recovering the capital in about 2 years? Am I taking too much of a risk? Kindly advice.
NB: Currently, I have some saloon cars on hire. So far so good. Assume your matatu will cost at least 2,000,000/=. At 70% bank financing you spend 600,000/= which is almost another saloon! The bank takes care of the rest 1,400,000/= at conservative 18% interest rate per annum say for three years. If interest rate is on reducing balance the total interest will be 388,500/= which is payable together with 1,400,000/=. That means you'll need 49,680/= per month. The bank financed van could be taken as collateral in which case the comprehensive insurance will be roughly 23,000/= per month. This gives a total of 72,680/= per month. Let's get the expected returns from those in this (KK-NBI) route. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=! <**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. The opposite of courage is not cowardice, it's conformity.
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Rank: Member Joined: 12/5/2013 Posts: 224
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jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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matatuman wrote:jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in. If you know what a rider is then read it in my contribution¡ Or the term "mandatory" is foreign to you. Help our friend @urstill1 and don't focus on unnecessary attacks. The opposite of courage is not cowardice, it's conformity.
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Rank: Member Joined: 12/5/2013 Posts: 224
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jerry wrote:matatuman wrote:jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in. If you know what a rider is then read it in my contribution¡ Or the term "mandatory" is foreign to you. Help our friend @urstill1 and don't focus on unnecessary attacks. Its not an attack, i am disgusted that you would mislead people by making it look like a viable option. You SHOULD NOT have suggested that in the first place! Infact you need to retract that. And thanks to people like you, i am getting comfortable just watching things on the sidelines.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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matatuman wrote:jerry wrote:matatuman wrote:jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in. If you know what a rider is then read it in my contribution¡ Or the term "mandatory" is foreign to you. Help our friend @urstill1 and don't focus on unnecessary attacks. Its not an attack, i am disgusted that you would mislead people by making it look like a viable option. You SHOULD NOT have suggested that in the first place! Infact you need to retract that. And thanks to people like you, i am getting comfortable just watching things on the sidelines. Are you saying comprehensive insurance is mandatory? It's third party which is as far as I know it but if a matatu is to be taken as security for a loan then comprehensive insurance is a must. What is your real point? The opposite of courage is not cowardice, it's conformity.
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Rank: Member Joined: 12/5/2013 Posts: 224
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jerry wrote:matatuman wrote:jerry wrote:matatuman wrote:jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in. If you know what a rider is then read it in my contribution¡ Or the term "mandatory" is foreign to you. Help our friend @urstill1 and don't focus on unnecessary attacks. Its not an attack, i am disgusted that you would mislead people by making it look like a viable option. You SHOULD NOT have suggested that in the first place! Infact you need to retract that. And thanks to people like you, i am getting comfortable just watching things on the sidelines. Are you saying comprehensive insurance is mandatory? It's third party which is as far as I know it but if a matatu is to be taken as security for a loan then comprehensive insurance is a must. What is your real point? Today is a sad day, in honour of one Amir Mohamed, i choose not to respond to you.
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Rank: Veteran Joined: 12/21/2011 Posts: 1,010
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matatuman wrote:jerry wrote:matatuman wrote:jerry wrote:matatuman wrote:jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in. If you know what a rider is then read it in my contribution¡ Or the term "mandatory" is foreign to you. Help our friend @urstill1 and don't focus on unnecessary attacks. Its not an attack, i am disgusted that you would mislead people by making it look like a viable option. You SHOULD NOT have suggested that in the first place! Infact you need to retract that. And thanks to people like you, i am getting comfortable just watching things on the sidelines. Are you saying comprehensive insurance is mandatory? It's third party which is as far as I know it but if a matatu is to be taken as security for a loan then comprehensive insurance is a must. What is your real point? Today is a sad day, in honour of one Amir Mohamed, i choose not to respond to you. @matatuman, you know the guy, yes it is, a true legend. died doing what he loves best.
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Rank: Member Joined: 12/5/2013 Posts: 224
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wilyum wrote:matatuman wrote:jerry wrote:matatuman wrote:jerry wrote:matatuman wrote:jerry wrote:The alternative to the above approach (bank loan) is to pay a deposit to a dealer (an arab for example) in MSA and hit the road with or without insurance<**>(just pray for no accident) and the interest portion will be reduced substantially. If the van costs 1.4M cash, the "arab" could add 200k if you buy "on hire purchase". Conpare 200k with 388,500/=!
<**> Third party insurance of ~7,800/= is mandatory for 14 seater matatu though I personally pay 7,000/=. My friend, uko na shida kubwa sana. I sincerely hope nobody listens to you here. Why would you advice anyone to get on the road without insurance? Come on please be sober. Are you aware that even with insurance, if your vehicle is not part of a sacco/company recognized by NTSA you bear full liability as and individual in case of any eventuality? I suggest you park your vehicle for a day and take time to familiarize yourself with the nitty gritty of the industry in which you are invested in. If you know what a rider is then read it in my contribution¡ Or the term "mandatory" is foreign to you. Help our friend @urstill1 and don't focus on unnecessary attacks. Its not an attack, i am disgusted that you would mislead people by making it look like a viable option. You SHOULD NOT have suggested that in the first place! Infact you need to retract that. And thanks to people like you, i am getting comfortable just watching things on the sidelines. Are you saying comprehensive insurance is mandatory? It's third party which is as far as I know it but if a matatu is to be taken as security for a loan then comprehensive insurance is a must. What is your real point? Today is a sad day, in honour of one Amir Mohamed, i choose not to respond to you. @matatuman, you know the guy, yes it is, a true legend. died doing what he loves best. Yes i do, we lost the King of the ring today and that was one of the meanest machines in Nairobi.
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Rank: User Joined: 9/6/2013 Posts: 1,446 Location: In a house
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jerry wrote:urstill1 wrote:For a long time I have deeply thought about venturing into matatu business and I'm considering long distance, say Kakamega to Nairobi. The matatu in question is going to be financed by a bank, about 70% of it and I'm considering a high-roof hiace commuter. Preferably manual and diesel. What might be the total injected capital given that I may not import directly from Japan? What are my chances of recovering the capital in about 2 years? Am I taking too much of a risk? Kindly advice.
NB: Currently, I have some saloon cars on hire. So far so good. Assume your matatu will cost at least 2,000,000/=. At 70% bank financing you spend 600,000/= which is almost another saloon! The bank takes care of the rest 1,400,000/= at conservative 18% interest rate per annum say for three years. If interest rate is on reducing balance the total interest will be 388,500/= which is payable together with 1,400,000/=. That means you'll need 49,680/= per month. The bank financed van could be taken as collateral in which case the comprehensive insurance will be roughly 23,000/= per month. This gives a total of 72,680/= per month. Let's get the expected returns from those in this (KK-NBI) route. For such kind of ventures, interest rate is 10%. That's what I confirmed from Family bank.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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urstill1 wrote:jerry wrote:urstill1 wrote:For a long time I have deeply thought about venturing into matatu business and I'm considering long distance, say Kakamega to Nairobi. The matatu in question is going to be financed by a bank, about 70% of it and I'm considering a high-roof hiace commuter. Preferably manual and diesel. What might be the total injected capital given that I may not import directly from Japan? What are my chances of recovering the capital in about 2 years? Am I taking too much of a risk? Kindly advice.
NB: Currently, I have some saloon cars on hire. So far so good. Assume your matatu will cost at least 2,000,000/=. At 70% bank financing you spend 600,000/= which is almost another saloon! The bank takes care of the rest 1,400,000/= at conservative 18% interest rate per annum say for three years. If interest rate is on reducing balance the total interest will be 388,500/= which is payable together with 1,400,000/=. That means you'll need 49,680/= per month. The bank financed van could be taken as collateral in which case the comprehensive insurance will be roughly 23,000/= per month. This gives a total of 72,680/= per month. Let's get the expected returns from those in this (KK-NBI) route. For such kind of ventures, interest rate is 10%. That's what I confirmed from Family bank. My calculation was based on interest rate being on reducing basis. Try and find out if interest is on flat rate or reducing. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 7/21/2010 Posts: 6,182 Location: nairobi
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Iam set to give this business a try, iam moving up and down looking for a sacco preferably which has no conductors but drivers only..any guidelines pple? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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mlennyma wrote:Iam set to give this business a try, iam moving up and down looking for a sacco preferably which has no conductors but drivers only..any guidelines pple? Route? Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 7/21/2010 Posts: 6,182 Location: nairobi
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Rankaz13 wrote:mlennyma wrote:Iam set to give this business a try, iam moving up and down looking for a sacco preferably which has no conductors but drivers only..any guidelines pple? Route? any good nairobi-to- upcountry route "Don't let the fear of losing be greater than the excitement of winning."
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Rank: New-farer Joined: 5/30/2013 Posts: 56 Location: Mini Apple
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I have a question on the structure of SACCOs in a specific route. I assume it's possible to have more than one sacco operating in a given route, say NRB to Kisumu?
- If it is possible, how is access to the shimo managed between the two saccos?
- Related to that, if someone has 5 matts and they form their own LTD company, how is that handled in terms of access to terminus and such.
Asante
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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kendata26 wrote:I have a question on the structure of SACCOs in a specific route. I assume it's possible to have more than one sacco operating in a given route, say NRB to Kisumu?
- If it is possible, how is access to the shimo managed between the two saccos?
- Related to that, if someone has 5 matts and they form their own LTD company, how is that handled in terms of access to terminus and such.
Asante On management of SACCOs each is alloted their indepedent space(shimo) by the county gov. Mwingine ashangie ya company. The opposite of courage is not cowardice, it's conformity.
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Rank: New-farer Joined: 5/30/2013 Posts: 56 Location: Mini Apple
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jerry wrote:
On management of SACCOs each is alloted their indepedent space(shimo) by the county gov. Mwingine ashangie ya company.
Thanks! Time to pull the trigger.
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Rank: New-farer Joined: 5/30/2013 Posts: 56 Location: Mini Apple
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One more question to the operators. I think almost all the owners I have read here operate Toyotas. Is there a disadvantage to operating Nissan Matatus (i'm thinking Nissan Caravan or something similar)? Is the fuel consumption any different from a similar Toyota? Any issues with spares availability?
I'm looking at the NRB to Kitale route. Thanks again.
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