Agreed,@tmatekwa,they say you should sell the matatu after three years - and by that time you get back about one third of what what you paid for it.

This is the cost that many people in the business don't anticipate. As a result,they milk their matatus dry by investing in dormant plots of land etc. Three years down the road,they need to buy a new vehicle and they can't raise the necessary funds...especially after factoring inflation.

By the way,have you noticed that all matatus with sh300k worth of a music system are owned by new comers? And after a short while,the system breaks down [due to abuse] and there is no money to repair/replace it?

@Orbit:

I doubt whether a fleet management system (presumably,GPS) would improve profitability - i.e. return on capital employed.

Find out the cost and then ask yourself whether the additional profit earned (not the extra sales!) are justifiable.

Then also ask yourself why Citi Hppa,DoubleM and KBS don't use the system...

Stoic fleet management? Yes. It will reduce garage time cheating,operating on unlicenced routes,miss use of vehicle for personal matters,falsified trips and falsified arrests. However the device is not a cure all on its own. You must have one authorised garage for repairs,an authorised petrol station with records of fuel consumption,a very minimum wage since they will help themselves to some of your money anyway,and a daily target. Above all calculate some goodwill between you and your employees. This in itself promotes a sense of belonging,self esteem and job security hence reducing large scale diversion of revenues. However the cost of the gprs system does not make economical sense to single unit owners.

Osama bin Laden

Hi My friend;

Instead of waiting for over six months for your mat to be build,lets talk on a deal of a 51 seater (New),only operated for six months in Nairobi under citi hopper.


Red eyes

Guys,what do you know about Mololine? I'm made to understand theft chances are slim,since all passengers are issued receipts plus as the owner you know exactly how many trips your mat has made to Nairobi - Nakuru vice-versa. Any info on this is highly appreciated.