I would use 5 million to buy a 33 seater, pimp it seriously and learn from a veteran in the business how to maximize returns (even if it costs me). You would then rake in at least 10k per day...which translates to 250k on a bad month net profit. Save 500k for unexpected expenses. I would also invest a great deal of time in the business for the first few months, learn all loopholes and seal them before making it less active.

You mean turnover for 25 days of operations.....anyway what are the margins in matatu business? I don't think its a business I would like to get into....too chaotic!!

Thank you for the correction. Even with the worst net profit of Ksh 200k per month...it is still a worthy investment bearing in mind that buses do not depreciate as fast as vans...give it a life span of seven years before you can dispose it...do your math. I also believe a net profit of 250k is possible once you become experienced in the business and seal most loopholes. About the chaos, no shilling comes easy...even 'passive' investments like real estate. Ask a landlord and they will tell you how active real estate can get. With a comprehensive insurance cover, close monitoring and frequent servicing, I believe you can make a fortune. Whats more, you get the cash on a daily basis so it is excellent for cash flow. This is important when you need cash for other projects that are time sensitive.

Last month I had a lengthy discussion with a focus group (matatu touts) on operating a bus.

What I learnt was don't bother with matatus if they're your only investment, especially when you've never done it before.

Point being you'll get burnt before you find your way around. Everyone is out to screw you in that business; be it the cops, the fleet manager or the touts themselves. Also factor-in stress as one of the costs of being in that business. But if you have the grit, do it and report your findings here.