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tnai9
#701 Posted : Tuesday, January 05, 2016 8:01:52 AM
Rank: Member

Joined: 6/21/2010
Posts: 345
Location: easto
junior121121 wrote:

@ Subaruman - that is correct. The 8500 is what you get after you pay the driver/makanga/ fuel etc and that's after you have been kulwad a bit. In the few years I have been running the business I have come to learn:
- Agree on a fixed amount as opposed to targeting a higher amount leading to fluctuations. In my case 8500/6500 which is weekday/weekend. Manyanga brings in 10500/8000
- Above amount is net. Driver pays himself and fuels daily (insist on always having the car sleep with a full tank)/Pays sacco fees (300 for direct management and 300 savings which I will mention on my next point) as well as washing the car
- Sacco takes 300 per day per car additionally which you get back at the end of year (Make sure you are getting this as I use to take the car for painting and top up on tyres etc
- First four days pays for city council (5600), insurance (14800) and service ( 5,200 for service on one month and 8100 on second month). I have quoted a bit higher on second month as you get to do things like linings/more greasing and allow for a bit more work
- Cars serviced every 24days on average

- Average earning for the vehicles is between 160-180k (this does not include private hires)

a bit wordy but hope it helps. Good luck to you and mwania - in your venture

Thanks @Junior, this is very informative. I am interested also, I once tried Taxi business but really unguad, but i am really encouraged. A few questions
1. What would be the total cost of a new supped(sp)up Ma3 - 33 seater, with everything in place, licences, annual comp insurance?
2. Do the supped up 33 seater mats bring in more than plain ones?
3. Assume I raise 2M, what funding options are available for me.
4. I work somewhere where I cant get anytime to attend to the mat biz. Does Chamas - umoinnner, etc guarantee one stressfree management, do i expect to just sit back and wait for money in the bank? Of course there is after five and weekends where I can attend their meetings
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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subaru
#702 Posted : Tuesday, January 05, 2016 9:17:54 AM
Rank: Member

Joined: 3/15/2010
Posts: 391
Location: nairobie
junior121121 wrote:
subaru wrote:
@ junior which is the simplest way to aquire a 33 str via bank n my statement is not good



@ Subaru - there are two main ways around this - at least that I know of:

- The two main asset banks supporting matatus are NIC and BOA. Equity seems to have really slowed down. NIC tend to be more supportive as they retain the log books and are flexible. The main downside to this is both banks ask for comprehensive insurance which costs an arm and a leg (Honestly this is what leads to a lot of people defaulting as the returns are very low once comprehensive is taken.

- Second way is there is a Kalasinga (sp) guy who is good on lending matatu owners. He is very respected in this field and his rates are same as bank (less the comprehensive cover) Ask around for his details or inbox me.

A third option you could and should consider if you have time is to start looking for auction vehicles at leakeys and compare to new ones. some serious savings to be made here.

Let me know if you need any more info





thanks for the info which banks sorts u quickly without requiring you to show up with good statements i think comprehensive ni lazima year one ita bidi
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jerry
#703 Posted : Tuesday, January 05, 2016 10:50:17 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
subaru wrote:
junior121121 wrote:
subaru wrote:
@ junior which is the simplest way to aquire a 33 str via bank n my statement is not good



@ Subaru - there are two main ways around this - at least that I know of:

- The two main asset banks supporting matatus are NIC and BOA. Equity seems to have really slowed down. NIC tend to be more supportive as they retain the log books and are flexible. The main downside to this is both banks ask for comprehensive insurance which costs an arm and a leg (Honestly this is what leads to a lot of people defaulting as the returns are very low once comprehensive is taken.

- Second way is there is a Kalasinga (sp) guy who is good on lending matatu owners. He is very respected in this field and his rates are same as bank (less the comprehensive cover) Ask around for his details or inbox me.

A third option you could and should consider if you have time is to start looking for auction vehicles at leakeys and compare to new ones. some serious savings to be made here.

Let me know if you need any more info





thanks for the info which banks sorts u quickly without requiring you to show up with good statements i think comprehensive ni lazima year one ita bidi

Hakuna cha lazima!! Just do your research and you will find out that over 80% matatus are insured on 3rd party. It's a risky biz. Leakey's ni wapi?
The opposite of courage is not cowardice, it's conformity.
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subaru
#704 Posted : Tuesday, January 05, 2016 10:57:27 AM
Rank: Member

Joined: 3/15/2010
Posts: 391
Location: nairobie
jerry wrote:
subaru wrote:
junior121121 wrote:
subaru wrote:
@ junior which is the simplest way to aquire a 33 str via bank n my statement is not good



@ Subaru - there are two main ways around this - at least that I know of:

- The two main asset banks supporting matatus are NIC and BOA. Equity seems to have really slowed down. NIC tend to be more supportive as they retain the log books and are flexible. The main downside to this is both banks ask for comprehensive insurance which costs an arm and a leg (Honestly this is what leads to a lot of people defaulting as the returns are very low once comprehensive is taken.

- Second way is there is a Kalasinga (sp) guy who is good on lending matatu owners. He is very respected in this field and his rates are same as bank (less the comprehensive cover) Ask around for his details or inbox me.

A third option you could and should consider if you have time is to start looking for auction vehicles at leakeys and compare to new ones. some serious savings to be made here.

Let me know if you need any more info





thanks for the info which banks sorts u quickly without requiring you to show up with good statements i think comprehensive ni lazima year one ita bidi

Hakuna cha lazima!! Just do your research and you will find out that over 80% matatus are insured on 3rd party. It's a risky biz. Leakey's ni wapi?


@ jerry gari ya 5m unaweka bila comprehensive you guys are tough leakeys ni ma auctioneers
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matatuman
#705 Posted : Tuesday, January 05, 2016 12:27:49 PM
Rank: Member

Joined: 12/5/2013
Posts: 224
jerry wrote:
subaru wrote:
junior121121 wrote:
subaru wrote:
@ junior which is the simplest way to aquire a 33 str via bank n my statement is not good



@ Subaru - there are two main ways around this - at least that I know of:

- The two main asset banks supporting matatus are NIC and BOA. Equity seems to have really slowed down. NIC tend to be more supportive as they retain the log books and are flexible. The main downside to this is both banks ask for comprehensive insurance which costs an arm and a leg (Honestly this is what leads to a lot of people defaulting as the returns are very low once comprehensive is taken.

- Second way is there is a Kalasinga (sp) guy who is good on lending matatu owners. He is very respected in this field and his rates are same as bank (less the comprehensive cover) Ask around for his details or inbox me.

A third option you could and should consider if you have time is to start looking for auction vehicles at leakeys and compare to new ones. some serious savings to be made here.

Let me know if you need any more info





thanks for the info which banks sorts u quickly without requiring you to show up with good statements i think comprehensive ni lazima year one ita bidi

Hakuna cha lazima!! Just do your research and you will find out that over 80% matatus are insured on 3rd party. It's a risky biz. Leakey's ni wapi?


Gari financed by bank lazima uweke comprehensive at least first year. Its not an option, it a precondition.
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matatuman
#706 Posted : Tuesday, January 05, 2016 12:34:21 PM
Rank: Member

Joined: 12/5/2013
Posts: 224
subaru wrote:
jerry wrote:
subaru wrote:
junior121121 wrote:
subaru wrote:
@ junior which is the simplest way to aquire a 33 str via bank n my statement is not good



@ Subaru - there are two main ways around this - at least that I know of:

- The two main asset banks supporting matatus are NIC and BOA. Equity seems to have really slowed down. NIC tend to be more supportive as they retain the log books and are flexible. The main downside to this is both banks ask for comprehensive insurance which costs an arm and a leg (Honestly this is what leads to a lot of people defaulting as the returns are very low once comprehensive is taken.

- Second way is there is a Kalasinga (sp) guy who is good on lending matatu owners. He is very respected in this field and his rates are same as bank (less the comprehensive cover) Ask around for his details or inbox me.

A third option you could and should consider if you have time is to start looking for auction vehicles at leakeys and compare to new ones. some serious savings to be made here.

Let me know if you need any more info





thanks for the info which banks sorts u quickly without requiring you to show up with good statements i think comprehensive ni lazima year one ita bidi

Hakuna cha lazima!! Just do your research and you will find out that over 80% matatus are insured on 3rd party. It's a risky biz. Leakey's ni wapi?


@ jerry gari ya 5m unaweka bila comprehensive you guys are tough leakeys ni ma auctioneers


Comprehensive will take up all your profits my friend whether its a bus or 14 seater. Wacheni kukasirika mkiambiwa hamjafanya research. Please find out how much it is kwa sababu nikikuambia utasema ni pang'ang'a.
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junior121121
#707 Posted : Tuesday, January 05, 2016 5:42:21 PM
Rank: New-farer

Joined: 11/9/2015
Posts: 56
mwania wrote:
How do you normally deal with the crew who seem to be on drugs and are keen to overlap and break all laws? And cops?




Frankly - with regards to cops - there is no way around this. The only thing I can say is for you not to be greedy and to ensure your driver is not greedy. I hear some owners pushing their crews to deliver 13-15k. The outcome is the car being run down and at least twice a week being harassed by cops. Cops will always be there and most SACCOS have a relationship with them.

The best way to deal with the crew is get a good manager. There are many on most routes. Try and look at the owners with fleets as they will most likely have a manager. A good manager will be about 150 bob per car you own. He is responsible for dealing with the cops/hustling for private trips (This is where we make money) service/taking car to service/dealing with accidents etc. I would advise you being involved in first 12 months if you are new to this.

I sound like a broken record but less greed means more returns - at least in the long run.
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junior121121
#708 Posted : Tuesday, January 05, 2016 6:59:31 PM
Rank: New-farer

Joined: 11/9/2015
Posts: 56
tnai9 wrote:
junior121121 wrote:

@ Subaruman - that is correct. The 8500 is what you get after you pay the driver/makanga/ fuel etc and that's after you have been kulwad a bit. In the few years I have been running the business I have come to learn:
- Agree on a fixed amount as opposed to targeting a higher amount leading to fluctuations. In my case 8500/6500 which is weekday/weekend. Manyanga brings in 10500/8000
- Above amount is net. Driver pays himself and fuels daily (insist on always having the car sleep with a full tank)/Pays sacco fees (300 for direct management and 300 savings which I will mention on my next point) as well as washing the car
- Sacco takes 300 per day per car additionally which you get back at the end of year (Make sure you are getting this as I use to take the car for painting and top up on tyres etc
- First four days pays for city council (5600), insurance (14800) and service ( 5,200 for service on one month and 8100 on second month). I have quoted a bit higher on second month as you get to do things like linings/more greasing and allow for a bit more work
- Cars serviced every 24days on average

- Average earning for the vehicles is between 160-180k (this does not include private hires)

a bit wordy but hope it helps. Good luck to you and mwania - in your venture

Thanks @Junior, this is very informative. I am interested also, I once tried Taxi business but really unguad, but i am really encouraged. A few questions
1. What would be the total cost of a new supped(sp)up Ma3 - 33 seater, with everything in place, licences, annual comp insurance?
2. Do the supped up 33 seater mats bring in more than plain ones?
3. Assume I raise 2M, what funding options are available for me.
4. I work somewhere where I cant get anytime to attend to the mat biz. Does Chamas - umoinnner, etc guarantee one stressfree management, do i expect to just sit back and wait for money in the bank? Of course there is after five and weekends where I can attend their meetings



@nia9 – thanks. Be encouraged. It’s a business that can make you money. I was lucky to get some guidance. To answer your questions
1)New complete mat is either 4.3/4.7 which is for NPR/NQR. You can get slightly cheaper if you buy chasis and give to bodybuilder (I prefer CFG as opposed to the others as they have a sturdy body). KCI is the best though but a lot more expensive. With regards to mannyanga – can go up to 6m (Really depends on what you wanna do – I have seen one that even has business class seats in Rongai )
* My advise – KISS. Keep it simple stupid. Go overboard on your third or fourth mat. For your first one just get some airbrushing and music – budget about 200k
2) Supped up one makes more as mentioned earlier. They don’t line up so can do more “squads”
3) You can finance with the banks (NIC best) or other bank. Two others are looking to join and make it happen so look into it.
4)There is no such thing as “stress free management” – even Buffet/Gates don’t have this. You need to find a good manager. The SACCOS will not do this for you. They will assist with TLB’s/ cops to an extent/ insurance claims etc but not day to day management of your vehicles. Get involved in your first year. I have a full time job and manage but you need to be able to tell the “stories” from the truth. Whats more you get to know the other owners on your route – we really tend to help each other out.
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junior121121
#709 Posted : Tuesday, January 05, 2016 7:02:49 PM
Rank: New-farer

Joined: 11/9/2015
Posts: 56
subaru wrote:
junior121121 wrote:
subaru wrote:
@ junior which is the simplest way to aquire a 33 str via bank n my statement is not good



@ Subaru - there are two main ways around this - at least that I know of:

- The two main asset banks supporting matatus are NIC and BOA. Equity seems to have really slowed down. NIC tend to be more supportive as they retain the log books and are flexible. The main downside to this is both banks ask for comprehensive insurance which costs an arm and a leg (Honestly this is what leads to a lot of people defaulting as the returns are very low once comprehensive is taken.

- Second way is there is a Kalasinga (sp) guy who is good on lending matatu owners. He is very respected in this field and his rates are same as bank (less the comprehensive cover) Ask around for his details or inbox me.

A third option you could and should consider if you have time is to start looking for auction vehicles at leakeys and compare to new ones. some serious savings to be made here.

Let me know if you need any more info





thanks for the info which banks sorts u quickly without requiring you to show up with good statements i think comprehensive ni lazima year one ita bidi


@Subaru - NIC is very good. Comprehensive is very very expensive.
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tnai9
#710 Posted : Wednesday, January 06, 2016 7:40:27 AM
Rank: Member

Joined: 6/21/2010
Posts: 345
Location: easto
junior121121 wrote:

@nia9 – thanks. Be encouraged. It’s a business that can make you money. I was lucky to get some guidance. To answer your questions
1)New complete mat is either 4.3/4.7 which is for NPR/NQR. You can get slightly cheaper if you buy chasis and give to bodybuilder (I prefer CFG as opposed to the others as they have a sturdy body). KCI is the best though but a lot more expensive. With regards to mannyanga – can go up to 6m (Really depends on what you wanna do – I have seen one that even has business class seats in Rongai )
* My advise – KISS. Keep it simple stupid. Go overboard on your third or fourth mat. For your first one just get some airbrushing and music – budget about 200k
2) Supped up one makes more as mentioned earlier. They don’t line up so can do more “squads”
3) You can finance with the banks (NIC best) or other bank. Two others are looking to join and make it happen so look into it.
4)There is no such thing as “stress free management” – even Buffet/Gates don’t have this. You need to find a good manager. The SACCOS will not do this for you. They will assist with TLB’s/ cops to an extent/ insurance claims etc but not day to day management of your vehicles. Get involved in your first year. I have a full time job and manage but you need to be able to tell the “stories” from the truth. Whats more you get to know the other owners on your route – we really tend to help each other out.


Applause Applause Applause
This is so so encouraging and invaluable. I got a partner already, a friend we have been discussing this biz and procrastinating but we have to do it now- met yesterday. He is kinda versed as he has two shuttles already + your invaluable info here really encouraged me to go it. Thinking diversification and already have a sketch of what we will do. We wont manage raising all the 5M so will do part financing.
Do you know anything about Choda fabricators?
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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