fbpx
Potentash
  • Relationships
    • The Singlehood Series
    • Dating
    • Sex
    • Parenting
  • Lifestyle
    • Home
    • Food + Beverage
    • Fashion
    • Interviews
  • Fiction
    • Poetry
  • Skin + Beauty
    • Skin
      • Skincare
    • Hair
      • Haircare
  • Wellness
    • Physical Health
    • Emotional Wellness
    • Mental Wellness
    • Social Wellness
    • Spiritual Wellness
  • Business
    • Business Finance
    • Personal Finance
    • Entrepreneurship
    • Investments
    • Personal Investments
  • Entertainment
    • Internet
    • Events
    • Music
    • Books
No Result
View All Result
  • Login
Potentash
  • Relationships
    • The Singlehood Series
    • Dating
    • Sex
    • Parenting
  • Lifestyle
    • Home
    • Food + Beverage
    • Fashion
    • Interviews
  • Fiction
    • Poetry
  • Skin + Beauty
    • Skin
      • Skincare
    • Hair
      • Haircare
  • Wellness
    • Physical Health
    • Emotional Wellness
    • Mental Wellness
    • Social Wellness
    • Spiritual Wellness
  • Business
    • Business Finance
    • Personal Finance
    • Entrepreneurship
    • Investments
    • Personal Investments
  • Entertainment
    • Internet
    • Events
    • Music
    • Books
No Result
View All Result
  • Login
Potentash
No Result
View All Result

Business: Investing In The Matatu Industry

Wayne Matengo by Wayne Matengo
February 15, 2018
in Business, Entrepreneurship, Running a Business
Reading Time: 4 mins read
391 25
0
500
SHARES
2.8k
VIEWS
FacebookTwitterWhatsApp

What comes to your mind when you watch the ‘nganyas’ plying side-to-side with your car, swerving through traffic jams while carrying a load of millennials from point A to point B? Do you see opportunity or chaos, or both? The reality is that the matatu industry is now on another level. This level comes with new rules that will either make or break you (if you’re currently on board).

They are becoming more reliable in transport and a very profitable business for investors. As you scale the ladder, more and more risks are unveiled. The government is also tightening the rules of the game which on one side is positive, but on the flipside is negative. But as we all know, living in a country where everyone comes up with his/her own rules of engagement, the system is definitely set to fail at the end of the day. Since the times of Michuki Laws, to the Graffiti laws, and currently the Mutua laws on Video Screens, all these regimes come up with new laws that then fail after some time.

matatu culture. Image from https://edition.cnn.com/travel/article/matatu-culture-nairobi/index.html

But this shouldn’t blow your dreams up young investor who wants to have his nganya compete for the Matwana Culture Hottest Wheels in the street. Here is what you need to know prior to investing in this industry:

  1. It is an expensive investment:

When I first boarded Phantom (when it was still brand new), I used to look at the various accessories inside the ‘Passenger Lounge’ and wonder a lot. From the many TFT (Thin film transistor) screens at the back of every seat, to the LED (Light Emitting Diode) screens mounted on the roof and window—note why I’m writing the acronyms in full. So these are some of the expenses you’ll incur when pimping your mat.

You’ll also require a further 500k for a comprehensive insurance cover and about 200k for extras- this include, Sacco registration, trademarks and legal fees like TLB- County Governments parking fees and others.

So, how much do you need to invest in this sector?

  1. You have to play by the rules

There’s no way to say it nicely, my friend, there is corruption – a utatoa kitu kidogo culture. You need to play by the rules in order to make a decent return. Daily Nation conducted an interview with some of the people who started this business sometime back; one of the key concern shared by all is corruption. Once a police officer stops your vehicle, you better comply with the law rather than arguing with them. And with this, one has to budget for the daily bribes to the police. If you are a morally upright person who does not want to break the rules this business is not for you. You will be frustrated by the cartels in this industry.

Another area to watch out for is your employees—the driver and the tout. These are the two people who, again, can either make you or break you. How you relate to these people is key. Though they usually tend to take something small from the daily income, it is better to give them a target for the day, upon which they will be paid. Most investors go for casual cheap labour, which is almost available at every bus stop but the issue comes up in responsibility. Your car could have caused accidents or even become towed, and without having ‘trustworthy’ employees, no one would take responsibility of this weird scenario which leaves you at the mercy of no one else but yourself.

Take that in mind.

  1. You are the CEO of your investment.

Many investors lose millions of shillings to the fraudster and corrupt government systems that control the matatu business due to their hands off diplomacy toward their investments. There is a Kikuyu saying that says “kindu no mwene” {only the owner can take care of his property.}

Many people who don’t go far in this sector are those who, learn about the millions laying unclaimed in the passenger’s transport sector and ‘without’ doing a proper research rush to make a kill. It doesn’t take much convincing to get somebody to buy a matatu since the demand for public transport in Kenya is obvious, especially in Nairobi due to the rural-urban migration we have witnessed in the last 10yrs.The unprecedented hike in fares is an indicator that the demand is going up. The problem for this “newcomers” comes when the car hits the road and the owner starts learning work-related vocabularies like, police crackdown, operation, kanjo, wire, breakdown, brake failure, music copyright, Mungiki, kamjeshi and hundreds of other payable institutions that don’t end up in the worksheet.

Share200Tweet125SendShare35Pin45
Previous Post

Sports: Archery Is A Mental Game – 9 Reasons Why You Should Take It Up

Next Post

Technology: Why You Need To Back Up Your Phone

Wayne Matengo

Wayne Matengo

I’m just a simple guy swimming in a sea of sharks.

Next Post

Technology: Why You Need To Back Up Your Phone

Please login to join discussion

Recommended

image from https://www.pulselive.co.ke/lifestyle/beauty-health/wig-7-things-to-consider-when-buying-a-wig-for-the-first-time/cc7drg8

5 Things To Consider As A First Time Wig Wearer

December 15, 2021
101
Image from https://buff.ly/316yQeP

Fancy A Flutter? Here Are Some Great Ways To Gamble Online

August 1, 2019
46

Popular Stories

  • Black man admiring his date. Image from https://www.npr.org/sections/codeswitch/2013/06/12/188643185/for-black-singles-a-big-gender-split-on-views-of-long-term-relationships

    The Singlehood Series: The Date Who Couldn’t Keep His Eyes Off Other Women

    15 shares
    Share 6 Tweet 4
  • A Public Proposal Exposed The Cracks In Their Relationship

    12 shares
    Share 5 Tweet 3
  • The Singlehood Series: He Took Me To A Kibanda On Our First Date As A Test

    10 shares
    Share 4 Tweet 3
  • The Singlehood Series: The Beautiful Date With Bad Table Manners

    9 shares
    Share 4 Tweet 2
  • Phone Review: The OPPO Reno8 T 5G

    200 shares
    Share 80 Tweet 50

Potentash Blog

Potentash

Potentash is an award-winning lifestyle blog. We publish lifestyle content that intersects with health, women, beauty, travel, business, relationships, finances and entertainment.

Explore

  • The Singlehood Series
  • From Stairs To Ramps
  • Man Around Nairobi
  • Pearls And Heels
  • Personal Finance
  • Food + Beverage
  • Editor’s Pick
  • Reviews

Get the Potentash Newsletter

  • Newsletter Archive
  • Subscribe
  • Frequently Asked Questions
  • Privacy Policy
  • Contact Us

Copyright © 2023. Potentash, In Partnership with Decima

  • Login
No Result
View All Result
  • Relationships
    • The Singlehood Series
    • Dating
    • Sex
    • Parenting
  • Lifestyle
    • Home
    • Food + Beverage
    • Fashion
    • Interviews
  • Fiction
    • Poetry
  • Skin + Beauty
    • Skin
      • Skincare
    • Hair
      • Haircare
  • Wellness
    • Physical Health
    • Emotional Wellness
    • Mental Wellness
    • Social Wellness
    • Spiritual Wellness
  • Business
    • Business Finance
    • Personal Finance
    • Entrepreneurship
    • Investments
    • Personal Investments
  • Entertainment
    • Internet
    • Events
    • Music
    • Books

Copyright © 2023. Potentash, In Partnership with Decima

Welcome Back!

Sign In with Linked In
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In