How to Start a Matatu Business in Kenya

ByTristram Ouma

Mar 8, 2023
How to Start a Matatu Business in Kenya

Last updated on March 2nd, 2024 at 05:44 pm

Are you considering starting a matatu business in Kenya but don’t know where to start? Look no further. In this comprehensive guide, we will walk you through the necessary steps to get your matatu business up and running.

How to Start a Matatu Business in Kenya

Step 1: Conduct Market Research

Before starting any business, it’s essential to understand the market demand and competition. Conducting market research will help you determine if there’s a need for your services, the target audience, and pricing.

Step 2: Register Your Business

To operate a matatu business in Kenya, you must register your business with the Registrar of Companies. This process involves submitting your business name, objectives, and directors’ details.

Step 3: Obtain Licenses and Permits

Operating a matatu business requires various licenses and permits, such as a PSV (Public Service Vehicle) license, NTSA (National Transport and Safety Authority) certificate, and a road service license. It’s crucial to obtain these permits and licenses to avoid legal problems.

Step 4: Purchase a Matatu

After obtaining the necessary licenses and permits, the next step is to purchase a matatu. The price of a matatu depends on several factors such as the make, model, and age. It’s essential to purchase a matatu that’s in good condition to avoid frequent breakdowns and repairs.

Step 5: Hire Drivers and Conduct Training

Once you have purchased a matatu, you need to hire drivers who have valid driving licenses and a clean driving record. It’s also essential to conduct driver training to ensure that they understand road safety and customer service.

Step 6: Determine Your Routes and Pricing

As a matatu business owner, you need to determine your routes and pricing. It’s essential to research your competitors’ pricing and offer competitive rates to attract customers.

Step 7: Advertise Your Business

Finally, it’s time to advertise your business. You can use various marketing strategies such as social media, flyers, and billboards to attract customers.

Starting a matatu business in Kenya requires dedication, hard work, and commitment. By following these steps, you can start a successful matatu business and provide a valuable service to the community.

In conclusion, starting a matatu business in Kenya involves several steps, including market research, business registration, obtaining licenses and permits, purchasing a matatu, hiring drivers, determining routes and pricing, and advertising your business. With dedication and hard work, you can start a successful matatu business that provides a valuable service to the community.

What is the initial cost of starting a Matatu Business in Kenya

Cost ItemDescriptionEstimated Cost (in KES)
Vehicle PurchasePurchase of a new or used Matatu vehicle500,000 – 2,500,000
InsuranceComprehensive insurance for the vehicle and passengers30,000 – 80,000
Vehicle InspectionInspection fees for obtaining the PSV license5,000 – 10,000
PSV LicenseObtaining a Public Service Vehicle (PSV) license from NTSA10,000 – 15,000
Route LicenseObtaining a license for the specific route20,000 – 50,000
Association FeesJoining and paying membership fees for a Matatu association10,000 – 20,000
Radio InstallationInstalling a radio for communication with other Matatus5,000 – 15,000
Initial FuelFueling the vehicle for initial operations30,000 – 50,000
Vehicle MaintenanceRegular maintenance and repairs for the Matatu vehicle20,000 – 30,000/month
Crew SalariesPayment for the driver and conductor salaries30,000 – 50,000/month
Marketing and AdvertisingAdvertising and promoting the Matatu business5,000 – 10,000/month
MiscellaneousContingency and unforeseen expenses10,000 – 20,000

Note: The estimated costs provided are subject to change depending on the location and the specific requirements for operating a Matatu business in Kenya. It is important to research the costs and regulations in your area before starting any business

Frequency Asked Questions

Which is the richest matatu Sacco in Kenya?

The richest matatu Sacco in Kenya is the Kenya Bus Service (KBS) Sacco. As of 2021, the Sacco had an estimated worth of over Ksh. 5 billion.

How much is a matatu driver paid?

The salary of a matatu driver in Kenya varies depending on factors such as the Sacco they work for and their experience. On average, a matatu driver can earn between Ksh. 20,000 and Ksh. 50,000 per month.

Where can I buy a matatu?

One can buy a matatu from various places such as car dealerships, online marketplaces like Jiji, OLX, or from private sellers. It is important to ensure that the matatu is in good condition and has all the necessary legal documents.

How much does it cost to join a matatu Sacco?

The cost of joining a matatu Sacco in Kenya varies depending on the Sacco. On average, it can cost between Ksh. 100,000 and Ksh. 300,000 to join a matatu Sacco. This amount may cover expenses such as registration fees, insurance, and initial deposit.

Which vehicle is best for matatu in Kenya?

The most popular vehicles used for matatus in Kenya are Toyota Hiace and Nissan NV350. These vehicles are preferred due to their durability, fuel efficiency, and availability of spare parts.

How much does a 33 seater matatu make in a day?

The amount of money a 33-seater matatu makes in a day in Kenya varies depending on factors such as the route, time of day, and the number of passengers. On average, a 33-seater matatu can make between Ksh. 10,000 and Ksh. 30,000 per day.

How much is a matatu ride in Kenya?

The cost of a matatu ride in Kenya varies depending on the route, distance, and the time of day. On average, a short distance ride can cost between Ksh. 30 and Ksh. 100, while a long-distance ride can cost between Ksh. 200 and Ksh. 1,000

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