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Matatu business
ali
#31 Posted : Sunday, August 03, 2008 7:10:00 AM
Rank: Veteran

Joined: 6/11/2008
Posts: 892
Hi

Mololine and Meru shuttle are good lines you can pursue. I am currently in the process of pursuing one after I realized that with an Office job,it will break me to juggle between matatu and the office. I advice you to pursue one.


I am more than a conqueror in Christ Jesus
For in him (Jesus) we live and move and have our being-Acts 17:28
mozenrat
#32 Posted : Monday, August 04, 2008 1:58:00 PM
Rank: Veteran

Joined: 5/18/2008
Posts: 796
Talking about matatus.. What's your take on the article in yesterdays Nation (Sunday) in the lifestyle magazine where people talk about their week. This weeks writer was talking about an extortion scheme running on route 33 where a new owner has to pay 15,000 to the 'elders' as some kind of initiation fee.

How often does this happen? Are Mololine and the rest of the matatu managers subject to this kind of extortion? Anyone with info on the Nairobi - Kinoo route?
tmatekwa
#33 Posted : Tuesday, August 05, 2008 5:22:00 AM
Rank: Member

Joined: 10/1/2007
Posts: 232
Most routes that have sacco's that man the terminus are subjected to some form of joining fee. They argue that by organising the operations the owners get better returns and are protected from destructive competition. The sacco's have BOYS who enforce the rules and collect daily levies from which they are paid. Part of the fees are used to pay for rented premises,salaries for boys,protection fees,and some form of dividend at the end of the year for registered members. Sacco's reduce the work load for traffic cops and local authorities by enforcing basic traffic rules.They also perform basic managerial tasks eg banning errant matatu crews from being employed in any other psv on the route,collecting daily returns on behalf of the members,negotiating collectively on fuel,spares etc,stipulating standards of road worthiness to be observed by vehicles. The kenya bus management is a legalised form of cartel. Joining fee @ 50k. Daily commissions @ 2%. Towing services,fueling at owners cost,supervision of crew and collecting daily returns. Perhaps the government should transform the sacco's into route management committees with a legal mandate to maintain sanity on the roads. In his zeal to transform the industry,mr michuki miss understood the enforcement role played by these sacco's,banning them all together. Mr. Mwakwere did have a bright idea when if proposed eradication of individual ownership of psv's. But little has been done so far towards the same. I do hope that the minister of transport do visit this forum.

Osama bin Laden
Nobby
#34 Posted : Tuesday, August 05, 2008 7:07:00 AM
Rank: Member

Joined: 2/8/2007
Posts: 625
Location: Nairobi
Hi Guys,

I have a mat operating for the last 4 months but i would like to sell it. Its one of the best ' manyagas' in langata and a KBB year 2000 with nice reams,nice attractive colour and dezines,a big screen,loud horn and full music .Please let me know if anyone is interested please call 0723481813.


The best is yet to come!
The future belongs to those who believe in the beauty of their dreams.
tmatekwa
#35 Posted : Tuesday, August 05, 2008 11:45:00 AM
Rank: Member

Joined: 10/1/2007
Posts: 232
@ nobby. Would 750k be a good price?

Osama bin Laden
Nobby
#36 Posted : Wednesday, August 06, 2008 5:52:00 AM
Rank: Member

Joined: 2/8/2007
Posts: 625
Location: Nairobi
Hi @ tmatekwa,

750K would be very low,that's the price i would sell it at after 18 months if its still in good condition. to be hornest i am looking at 1.1m negotiable. Lets look at it this way,a new nissan direct from japan will cost you about 980k if you in the kenyan market a toyota will be about 1.2m but this still do not have seats,speed governer,no colour or attractive dezines,no music,no TLB,no blarring horns,no alloy rims,etc.It cost me over 250k to put these add ons after the landed cost. By the way my cell fone number is 0721481813 and not 0723481818. just get in touch if you are interested.


The best is yet to come!
The future belongs to those who believe in the beauty of their dreams.
murenj
#37 Posted : Wednesday, August 06, 2008 7:08:00 AM
Rank: Member

Joined: 7/22/2008
Posts: 851
Location: nairobi
@ nobby. Tlb is non transferable. The police are currently cracking down on multi colored psv's. Audio and video systems are being removed by the police. Big horns are also outlawed.

The cunning of the Buffalo
Nobby
#38 Posted : Wednesday, August 06, 2008 7:39:00 AM
Rank: Member

Joined: 2/8/2007
Posts: 625
Location: Nairobi
@ murenj,an attractive colour does not necessarily mean its multicolour,TLB and advance tax is only about 11k,and what police are cracking down on is loud music and not just music,infact we have a permit from the music copyright sociery of kenya to play music.The amout i am quoting is the actual value of the van after the bear essentials have been added.On the other habd it depends what kind of matatu you wold like to operate and route.

The best is yet to come!
The future belongs to those who believe in the beauty of their dreams.
tmatekwa
#39 Posted : Wednesday, August 06, 2008 9:24:00 AM
Rank: Member

Joined: 10/1/2007
Posts: 232
Wishing you the best of luck nobby. Sorry. But I am a hard bargain hunter.

Osama bin Laden
mseiya
#40 Posted : Wednesday, August 06, 2008 9:28:00 AM
Rank: Member

Joined: 7/3/2008
Posts: 12
mat business is good,trust me. I have been there and can tell anyone there is money. However,personally am pulling out. My reasons,my advice.

One I got there with an old mat,maintainance costs have been high in most of the cases offsetting income. If u r unlucky gari 'noks' and you spend like 25k to 70k depending on make/model etc... Plus mat mzee itakuliwa sana na crew on pretext imeharibika,polisi,etc Thus I advice a new vehicle. New mat will ensure a constant stream for like 6-8months before anything major by then you will be a float with enough cash for all eventualities and resale value still high.

Two,you need close management..... if you entrust it to your crew umeungua! why lie? u trust a hungry fellow with your money. Else employ a manager to run after it and agree on revenues...this not to substitute for your inspections.

Third,kuwa na enough cash reserves to ensure uptime ya gari iko over 80%. sio gari inaenda garage inashida huko ukigather ndooo. isikuwe pesa ya dinga ndio maposho ya jioni.... utakwama..

Else I got my Shark AQ... anyone out there interested.... gari in good shape plus music... operating.

I will be coming later to the business when I'm available for it




he who fights himself is a great man
The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. - Warren Buffett

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