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 officially a new entrant in the matatu business. Excited and proud, you want everyone to know that you’re not just an investor but a risk-taker stepping into the world of public transport. Nikona na nganya kwa barabara. Watu wana ku admire ukona bidii.
Mat unaipea jina ya nguvu kwani iko nini? Wacha tuite Calabash. So wewe ndio mwenye Calabash, I see…
Tuingie kazi basi…
Ushapewa driver, Sacco wana manage mat. Hapa wewe ni member wa super metro… 
First week excitement, end of the month unalipa deni na unajipea moyo utatoboa tu… 47 months to go. Ushajiingiza already. Few months later. The reality. You start questioning your ability to make decisions. You feel trapped.
Hapa ndio mlikuwa mnataka kujua (is the business profitable? In my opinion Yes and No. In the long-term yes… but to a moderate extent.
In terms of financial gains, let’s break it down. Loan repayment alone takes up approximately ksh 4,000 per day, which amounts to ksh 120,000 per month for a period of 48 months. Investors typically earn between ksh 7,000 and 8,500 daily hii ni week days. Weekend expect ksh 5000 - 6000.
Monthly expenses include service costs ranging from ksh 25,000 to 35,000, parking fees of ksh 13,400, and insurance at ksh 15,000. On average, total expenses fluctuate between ksh 180,000 and 200,000 per month. Hapa ndio tulikuwa tunasema holding other factors constant (ceteris paribus).
The remaining amount after covering these expenses is what the investor takes home. However, considering the stress and effort involved, the returns hardly justify the hassle. Ultimately, the real beneficiary in this setup is the SACCO.
Swali ya kwanza… oh naona mkono ya @Wamathuruari. Uliza swali. Aaaaah…sawa mbona zinachotwa?
Cc: @Gaines
Wacha ntafute wale walitaka hii information.