Everything You Need To Start A Matatu Business In Kenya

Matatu Business In Kenya

The matatu business has been recognized as a major public transportation system in Kenya which has helped and still helping the day-to-day activities of Kenyans. Of course, the matatus has been serving the cities, towns, and urban & suburban areas.

Matatus operate on a bus, van, or mini buses which are privately owned. And its way of operation involves picking up and dropping off passengers on particular fixed routes. This is what makes the matatu business a unique venture.

In Kenya, starting a matatu business is a smart way of making daily income in the transportation sector which the transportation is also a profitable one.

However, if you are planning on starting a matatu business in Kenya just know that it is a profitable business when managed well and when operated with a strategic plan.

That is why in this article, we have provided you with the information on everything you need to start a matatu business in Kenya.

Is Matatu Business Profitable In Kenya?

In Kenya, having a matatu business is another way of making money daily, and we all know that the transportation industry is a profitable idea that will remain relevant.

The amazing aspect of the matatu business is that you earn money from Kenya’s population as most prefer public transport as a way of going to work and running their day-to-day activities.

Meanwhile, during our research, we found out that you can make up to Ksh 15,000 daily profit if you can be able to identify crowd-flooding routes.

How Much Does A 14 Seater Matatu Cost In Kenya?

It costs as low as Ksh 2 million to Ksh 4 million to buy a 14-seater matatu. Meanwhile, it depends on the brand. For example, we have Toyota Hiace, Nissan, and Isuzi, and their prices vary.

Another factor that determines the cost of a 14-seater matatu is whether you are going for a brand new or secondhand. So you have to keep to the range of the aforementioned budget.

How Can I Invest In Matatu Business In Kenya?

Below are 6 simple steps to invest in matatu business in Kenya:

  • Research the market
  • Purchase your 14-seater matatu
  • Obtain licenses and permits
  • Hire a trusted driver
  • Do your Sacco registration
  • And begin your operation

What Are The Advantages And Disadvantages Of Matatu Business In Kenya?

Advantages Of Matatu Business In Kenya

1. It is a profitable business
2. And it is very easy to start

Disadvantages Of Matatu Business In Kenya

1. Most of the vehicles used are very old and unconducive
2. The risk of theft can also be a disadvantage of the matatu business in Kenya
3. You are more likely to face harassment from the police even when you meet up with the rules.
4. If you hire an untrusted driver and conductor, you are at risk of not making a profit.

How Much Does It Cost To Run A Matatu Business In Kenya?

After calculating the cost of 14 seater matatu, matatu sacco registration, licenses and permits, and other expenses, you will need at least Ksh 3 million on average to start a matatu business in Kenya.

How Do One Start A Matatu Business In Kenya?

Here are the steps you need to follow to start a matatu business in Kenya:

1. Buy Your Matatu: The first step is to buy the matatu which you will use for the transportation business. Generally, when it comes to buying a matatu, you need to consider whether you are going for a 14-seater matatu or 33-seater matatu.

Also, you can decide to go for a fairly used matatu which will cost less. It is advisable to inspect the vehicle very well before making a purchase.

2. Get Registered With Matatu Sacco: Sacco is just like an association that foresees accountability and route management. So when you purchase your matatu, register with them as soon as possible. This enhances the trust of passengers since they will report any usual activities. Thereby making them prefer matatu that are registered with Sacco.

As the case may be, you are expected to pay a certain amount of money. Therefore, you have to find out their requirement and fulfill them.

3. Acquire Licenses And Permits: Matatu operators must acquire licenses and permits before commencing operations. You have to first inspect your vehicle, register with the licensing authority, and then obtain insurance and other needed documentation that will enable you to operate your matatu business without hindrance.

However, if you fail to obtain licenses and permits, it may lead to impounding of your vehicle or attracting fines.

4. Choose How To Run Your Business: Either you do the business by yourself or you hire a driver. Nevertheless, if you will be hiring a driver, ensure to hire an experienced, reliable, and trusted driver.

It is very important to reach a signed agreement with them based on being careful with the vehicle (handling it with care) and mode of remittance.

Conclusion

Once you fulfill all the above requirements, you can now start your matatu business successfully. Meanwhile, a matatu business in Kenya is a profitable venture.

Just follow the steps stated in this article, and you will be on your way to making money daily.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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