All matatu owners tupee siri.. kuna pesa inawasha somewhere

[Njonge]

is your matatu profitable? dos and don’ts? naweza pata na less than 1 m?

[Yuletapeli]

Relax.. ikiwasha hivo itapotea haraka. Kwanza jaribu kukaa nayo for three to four good months bila kuifikiria… ukitoboa then I’m sure utakuwa na uwezo enough ya ku make decision.

[Njonge]

uko na matatu? I want to know about the matatu business

[Yuletapeli]

Kuna hii thread inaweza kusaidia sana

Breaking Down the Matatu Business: What You Need to Know

Elders requested this information, and I was initially responding to @Wamathuruari’s question. However, I figured it would be better to start a thread and address all your questions in one place. Let’s dive into the realities of the matatu business. You need an initial capital of ksh 2 million. The new model matatu costs ksh 6.5 million, with the bank financing 70% while, as an investor, you cover the remaining 30%. Easy eh! Sawa. If you can raise that amount… Congratulations! You’re now off…

[MikeOcksmal]

They already told us that matatus have been colonised by cartels. Only get into the business if you want to eventually get into the cartel somehow like Jimal Rohosafi

[Atasijui]

@Njonge

is your matatu profitable? dos and don’ts? naweza pata na less than 1 m?

Bro,don’t you dare!
I repeat don’t you dare.
The biggest beneficiaries of that business don’t own them.
Na plus one thing that guides me in my investments is how hard/easy is it to get into it.
The easier it is the less profitable it is.
Matatu anyone with a mil can buy one and get into business.
Hio pesa fanyia biashara ingine if you put your money there umebant.

[Njonge]

@Atasijui

…ts? naweza pata na less than 1 m?

Bro,don’t you dare!
I repeat don’t you dare.
The biggest beneficiaries of that business don’t own them.
Na plus one thing that guides me in my investments is how hard/easy is it to get into it.
The easier it is the less profitable it is.
Matatu anyone with a mil can buy one and get into business.
Hio pesa fanyia biashara ingine if you put your money there umebant.

biashara kama gani

[pakashume_pakashume]

@Njonge

…less than 1 m?
Bro,don’t you dare!
I repeat don’t you dare.
The biggest beneficiaries of that business don’t own them.
Na plus one thing that guides me in my investments is how hard/easy is it to get into it.
The easier it is the less profitable it is.
Matatu anyone with a mil can buy one and get into business.
Hio pesa fanyia biashara ingine if you put your money there umebant.

biashara kama gani

You want to be spoon fed si ndio???unabehave kama last born…go research and trust your instincts…we have naysayers here who will discourage you…

[Njonge]

@pakashume_pakashume

You want to be spoon fed si ndio??

sijakuuliza

[pakashume_pakashume]

@Njonge

…

pakashume_pakashume:

You want to be spoon fed si ndio??

sijakuuliza

Who cares last born..nitakufinyaaa!!!

[Coolmate]

Just continue your research on same sector.
Do your analysis on the pros and cons.
If it didn’t work for some fella it might do for you. Depending on how well you prepare, so many contributing factors come into play which actually might favour your plan. There isn’t any business venture that got maximum% success rate. Don’t take the advice of the fakas here who have never made an attempt at investment.
Know that any business can fail and trust your instincts.

[Jack_Black]

Very risky business since the barrier to entry is low, the profit margins are slim and the cash heavy nature of the business means leakages all around. Maintenance and cops will be your biggest problems.

Read through the thread someone else has pinned up there before wasting your money.

[yulemmeru]

as a future investor, I believe the route pia ni very important
Some routes have very cheap fare like NBO to naks
My route NBO-Chuka inalipisha 700-800 for direct ones (170km journey)

My math for an owner-driver (as an uninformed outsider)
piga to and fro = 340km, 26*750 = 19500
diesel = 5.5-6.5k; sacco, police, etc = 2k; comp insurance = 400 per day; maintainance,misc = 1k
Loan financed 2.5m after depo = 2400 daily
service et al …
As a owner driver, its very profitable

as an investor umeweka 30%
Loan financed 2.5m after depo = 2400 daily
insurance 400
maintenance (increasing as mat ages), misc expenses..
you may end up spending 3000-3500 per day (considering maintenance and assuming no major problems kama kushika, accidents, breakdowns)

ukumbuke uliweka depo+sacco+branding+seats++counties+compliance = 1.1-1.3m
Unless you are getting 5k per day, hesabu haiingiani
even at 5k, your capital will take 2.5-3.5+ years kurudi

if you can enter a well-organized sacco, get a good crew, can pay most of the loan with your current income, and the alternative is parking your money 1.5m in a MMF paying the current 10% (under 750k profit in 4 yrs) or some land purchases (doubling in 6-8years best case), a matatu may be worth the shot. At a bare minimum, in 4 years you will have all your capital, a paid off mat worth 1.5-1.9M, and revenue at kama ni 50k per month because hauna loan

Experts kama @Yuletapeli leteni maoni

[Yuletapeli]

@yulemmeru

…ur current income, and the alternative is parking your money 1.5m in a MMF paying the current 10% (under 750k profit in 4 yrs) or some land purchases (doubling in 6-8years best case), a matatu may be worth the shot. At a bare minimum, in 4 years you will have all your capital, a paid off mat worth 1.5-1.9M, and revenue at kama ni 50k per month because hauna loan
Experts kama @Yuletapeli leteni maoni

Tiyota hiace new model.. ndio shida. Itakumaliza. Maintenance iko juu. Alafu pia gari za long distance huwa haziendi daily.. return teip is not guaranteed. Avoid unless ukona pesa ya kununua turbo na kufunga engine ama kuekelea ile ya 5L.

My opinion: Wachana na gari ndogo. Ikona tu magonjwa twingi sana. Better ufanye kitu ingine. Haitarudisha haraka…

[Atasijui]

@yulemmeru

…ur current income, and the alternative is parking your money 1.5m in a MMF paying the current 10% (under 750k profit in 4 yrs) or some land purchases (doubling in 6-8years best case), a matatu may be worth the shot. At a bare minimum, in 4 years you will have all your capital, a paid off mat worth 1.5-1.9M, and revenue at kama ni 50k per month because hauna loan
Experts kama @Yuletapeli leteni maoni

Find out how many matatus the directors of Mololine have.
Kam ma jibu hapa.
Cheza na mtandao piga piga masimu.
Hapo ndio unaeza jibu hizi swali zako.

[Jack_Black]

Ukiingia hii biz there’s a 75% chance you will lose money, as it’s a cartel operation with multiple moving parts, very high running costs, razor thin margins and extremely expensive variables e.g kushikwa na kutoa gari once a week can easily cost 50k to resolve per trip.

Quite funny how they can jump through multiple hoops for a near guaranteed loss, but stocks trading they can ignore despite the chance of doubling their money.

Peculiar creatures.

[Gaines]

Identify your circle of competence and stay within it. Invest kwa ile industry wewe hufanya kazi juu that’s the one you understand best.