Hi guys. I and a friend inted to contribute jointly and start a matatu (Nissan or Toyota Hiace) business by September this year. Could anyone with experience or insights into this business advise please. We are planning to purchase the vehicle at approx. Ksh 1 M.

we plan to have the business on long distance routes. the ones that are managed by saccos.

Matatu business is only good for those who intend to do it themselves. i.e you'll be the one driving or the conductor and you understand the business vizuri. Enyewe it has a lot of cash but also a great number of challenges that may be very annoying and discouraging to someone who does not understand the business.

North Rift is also good. Try them out. Most trusted line of matatus in the region.

One year on, how is this business especially if one wants to get a 33 seater bus for town service?

@TUPAC,
You were supposed to have started by Sept 2010!
What happened?You seem to have developed cold feet and thus this business is not for you....

@chaka i joined a matatu sacco. couldnt go ahead with the idea.

Ok,so what is your exeperience so far and how long have you been on it?[/quote]
we joined many of us around 120 members.we have 6 Nissan caravan on th road since july last year. biashara si mbaya but we need to manage them closely coz drivers really eat whe not well supervised. we took some loans so we service them as we increasa the number of vehicles. lakini biashara ya matatu si mchezo.

All,
If you are going into the 33 seater business the options are basically 2. Buy your buses, brand them kbs or moa or citi hoppa and have it franchised. There is slightly less stress from the mungiki, bus stop thugs etc. There are quite a number of Nairobians who trust branded buses and will ensure steady market.
But that does not guarantee your revenue. And unfortunately, 1 bus cannot join a franchise. http://www.kenyabus.net/index.php?page=franchise
The other option is to quit your day job and drive that bus until you recover your capex.

Thanks great people. @Madhaqer and @ TUPAC. I thoght at KBS, you pay 50K for upto 5 buses but you could start with one and build up the number?