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Matatu Business
matatuman
#421 Posted : Wednesday, August 06, 2014 8:59:22 PM
Rank: Member


Joined: 12/5/2013
Posts: 224
Rankaz13 wrote:
MuzeeMumonja wrote:
Thanks Rankaz, much much appreciated. Pity, I am taking my thoughts off matatu business for now, maybe I'll invest in stocks or something.


Not so fast. Challenges are just but opportunities by another name. Do some basic research first then make an informed decision. All the best lakini.


@MuzeeMumoja...If it helps, i have an 8 to 5 job. I got the same advice when starting out, and i still went ahead and took the plunge. Looking back, i appreciate the few who told me the plain truth. Has it been easy? No it hasn't but such is life.
MuzeeMumonja
#422 Posted : Wednesday, August 06, 2014 10:24:42 PM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Thank you for the encouragement Rankaz and Matatuman.
Rankaz13
#423 Posted : Thursday, August 07, 2014 9:25:42 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
MuzeeMumonja wrote:
Thank you for the encouragement Rankaz and Matatuman.


You're most welcome. Incidentally, I'm an 8 to 5 fellow too, with frequent vampire and weekend shifts in between. It may surprise you but one of the biggest attractions for the matatu biz for me is that it pushes me out of my comfort zone.
Life is like playing a violin solo in public and learning the instrument as one goes on.
subaru
#424 Posted : Friday, August 08, 2014 5:27:03 AM
Rank: Member


Joined: 3/15/2010
Posts: 391
Location: nairobie
@ matatuman & rankaz thanks for the info
kaka2za
#425 Posted : Saturday, August 09, 2014 2:21:01 PM
Rank: Elder


Joined: 10/3/2008
Posts: 4,057
Location: Gwitu
MuzeeMumonja wrote:
Thank you for the encouragement Rankaz and Matatuman.


If you are considering partnership,I can offer you 50% on a new 33 seater.I have the time and the experience but need cash to clear the loan within a year to save on interest.

Tafakari hayo.
Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
MuzeeMumonja
#426 Posted : Saturday, August 09, 2014 10:08:21 PM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Very interesting Kaka2za. Can we pick this up via email? If yes, please drop me a note through my email address i.e. chris_topherhill@yahoo.com. Most important is the VIN of the mat, the sacco you're with, the route and the monthly net revenues. Cheers.
kaka2za
#427 Posted : Saturday, August 09, 2014 10:32:51 PM
Rank: Elder


Joined: 10/3/2008
Posts: 4,057
Location: Gwitu
MuzeeMumonja wrote:
Very interesting Kaka2za. Can we pick this up via email? If yes, please drop me a note through my email address i.e. chris_topherhill@yahoo.com. Most important is the VIN of the mat, the sacco you're with, the route and the monthly net revenues. Cheers.


Sawa. I will forward the details.
Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
jerry
#428 Posted : Sunday, August 10, 2014 11:08:19 AM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
Let's keep Wazua spirit alive by sharing "the details"
The opposite of courage is not cowardice, it's conformity.
subaru
#429 Posted : Sunday, August 10, 2014 5:22:18 PM
Rank: Member


Joined: 3/15/2010
Posts: 391
Location: nairobie
@ kaka i need some indo about the 33 str john5029393@yahoo.com
jerry
#430 Posted : Thursday, August 14, 2014 8:33:13 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
Anyone with an idea what AT, FAT, DA, DAT, IAT, I5, IA, FA ... stand for in auto transmission?
The opposite of courage is not cowardice, it's conformity.
matatuman
#431 Posted : Thursday, August 14, 2014 10:37:11 PM
Rank: Member


Joined: 12/5/2013
Posts: 224
jerry wrote:
Anyone with an idea what AT, FAT, DA, DAT, IAT, I5, IA, FA ... stand for in auto transmission?


This should help...in dash means the shift lever is mounted on the dashboard.

AT – Automatic transmission
MT – Manual Transmission
FAT/AT – Floor automatic transmission
IAT – In-dash automatic transmission
DAT/DA – Dashboard-mounted automatic transmission
CVT – Continuously Variable Transmission
SAT – Semi-Automatic Transmission
F5 – Floor 5 speed manual transmission
I5 – In-dash 5 speed manual transmission
jerry
#432 Posted : Friday, August 15, 2014 5:31:48 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
matatuman wrote:
jerry wrote:
Anyone with an idea what AT, FAT, DA, DAT, IAT, I5, IA, FA ... stand for in auto transmission?


This should help...in dash means the shift lever is mounted on the dashboard.

AT – Automatic transmission
MT – Manual Transmission
FAT/AT – Floor automatic transmission
IAT – In-dash automatic transmission
DAT/DA – Dashboard-mounted automatic transmission
CVT – Continuously Variable Transmission
SAT – Semi-Automatic Transmission
F5 – Floor 5 speed manual transmission
I5 – In-dash 5 speed manual transmission

Thanks @matatuman, V. Nice weekend.
The opposite of courage is not cowardice, it's conformity.
Kipkorir
#433 Posted : Wednesday, August 20, 2014 10:36:42 AM
Rank: New-farer


Joined: 1/24/2014
Posts: 17
Rankaz13 wrote:
matatuman wrote:
MuzeeMumonja wrote:
Hi Members. I've been following this thread and need your advice. I have saved about 2.2 Million shillings and would like to get into the mat business. I have 3 options although you can propose more i.e.

1. Buy two old 14 seater mats. Maybe deploy these on long distance e.g. with 2NK, MTN, NENO, NNUS e.t.c.
2. Import a Toyota 7L, although from what I have seen in this forum, these are not getting TLB, thus a relatively weak option.
3. Look for a partner or talk to the bank for financing of a 33 seater for town service in Nairobi, possibly with Metro trans or Super Metro.

Thanks in advance guys and all advice most welcome.


See my 2 cents below but do your research.
On 1
2.2M might get you two decent 14 seaters in fair condition, but you might need some extra cash for any surprises. Third hand cars come with all manner of issues - all the 3rd hand matatus i bought at one point or another needed replacement of either gear box, diff, fuel tank or engine overhaul.Good thing is you rarely have to replace all unless you got a bad deal.This non registration has inflated prices e.g. a 5L KBJ-KBL in above average condition would cost you around 1.2M. If you got this right however it would be a good bet since you have income from 2 vehicles.
On 2
There is hope if you are patient, word from reliable sources is there will be a window to register. And with 2.2M you will have some change. A diesel should cost around 1.8 to 1.9max, A petrol van about 1.5 to 1.7Max.
On 3
Depends on how well you know your partner and how professionally you both manage the biz. From experience, i would not partner with an individual but if you found someone honest who shares your passion, then this would be the best. BTW, i think if you have 2.2M you can approach a bank for asset financing, they usually ask for 30%. I am not familiar with town service though. This option is more promising than the above two but be ready to get your hands dirty.
Perhaps Kimiri can share some light on this.



Very valid points raised by @matatuman. The current uncertainty has really skewed market prices and though NTSA seems to be in favor of lifting the 'ban', the issue is beyond them and seems like it's headed to the cabinet for a final decision.

Third hand mat, be very careful on that. Have a very good mechanic, one with a keen eye for detail, to accompany you when doing such. Incidentally, my experience mirrors @matatuman's. There's one unit I'd got in 2011 which was in perfect condition, accident free, etc. Nikanunua, nikaitayarisha (took about a month - never do this in a hurry) kisha ikaanza kazi. Shock on me, on the second week of operations, the gearbox failed (issues to do with top-shaft and couter-gear) and I had to replace with a new one at 54k. About 10 or so months later, an engine overhaul was called for. So yes, when he tells you to have some spare cash aside for any surprises, please listen. As always, I advise to have spare cash sufficient to buy a complete engine (whose prices currently range from 280k to 450k depending on type and specs).

One final thing, as you research, don't forget to research on a good reputable and reliable garage where you will be servicing and repairing your vehicles. Pay them a visit too and see how they do their work, enquire on some charges for this or that, etc. This is very important especially for yo with a demanding day job that keeps you occupied. For this, since I did not have a vehicle at the time and therefore knew no mechanics, I enlisted the help of a relative who happened to own one at the time. Being a man in uniform, he did it all under cover and went as far as getting a quotation. Once I finally got the unit, nilienda tu nayo kwa garage na ile quotation nikawauliza 'hii handwriting ni ya nani?' The I gave them the car to work on at the prices they themselves had quoted, after slight negotiations. So far, so good.

Incidentally, if you choose to buy a locally pre-owned unit, if you can, insist on visiting the garage where it's ordinarily serviced/repaired and talk to the specific mechanics who handle it. They may have some valuable insights that the seller may be unwilling to reveal. This once saved me some potential headache.

And, when you take your mech to view some cars, please pay him a stipend for taking his time. That is over and above meeting his fare and lunch costs.


@ Rankaz. I totally agree with you. What you have stated mirrors what I did in my case. You must take care of the mechanic that is helping you to get a vehicle. Initially, my mechanic was not forthcoming in his ideas about a vehcile I had intended to buy. When I paid him, he went an extrar mile when i was going to check another vehicle on a different day. we did for about four occasions on different vehicles till i settled on one which has never disapointed me.

Imagine a KAV van which looks and runs like a KBR. the first garage i took it for servicing got alot of suiters wanting me to sell the vehicle to them. The vehicle goes to kisii early in the morning and be back to Nairobi by 5pm.

So it doesn't matter the car's registration number but what matters in state of the vehicle. the previuos owner of my vehicle took care of it such that he was morning as i was driving it away after settling the payment.
pkn
Rankaz13
#434 Posted : Wednesday, August 20, 2014 11:49:40 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Kipkorir wrote:
Rankaz13 wrote:
matatuman wrote:
MuzeeMumonja wrote:
Hi Members. I've been following this thread and need your advice. I have saved about 2.2 Million shillings and would like to get into the mat business. I have 3 options although you can propose more i.e.

1. Buy two old 14 seater mats. Maybe deploy these on long distance e.g. with 2NK, MTN, NENO, NNUS e.t.c.
2. Import a Toyota 7L, although from what I have seen in this forum, these are not getting TLB, thus a relatively weak option.
3. Look for a partner or talk to the bank for financing of a 33 seater for town service in Nairobi, possibly with Metro trans or Super Metro.

Thanks in advance guys and all advice most welcome.


See my 2 cents below but do your research.
On 1
2.2M might get you two decent 14 seaters in fair condition, but you might need some extra cash for any surprises. Third hand cars come with all manner of issues - all the 3rd hand matatus i bought at one point or another needed replacement of either gear box, diff, fuel tank or engine overhaul.Good thing is you rarely have to replace all unless you got a bad deal.This non registration has inflated prices e.g. a 5L KBJ-KBL in above average condition would cost you around 1.2M. If you got this right however it would be a good bet since you have income from 2 vehicles.
On 2
There is hope if you are patient, word from reliable sources is there will be a window to register. And with 2.2M you will have some change. A diesel should cost around 1.8 to 1.9max, A petrol van about 1.5 to 1.7Max.
On 3
Depends on how well you know your partner and how professionally you both manage the biz. From experience, i would not partner with an individual but if you found someone honest who shares your passion, then this would be the best. BTW, i think if you have 2.2M you can approach a bank for asset financing, they usually ask for 30%. I am not familiar with town service though. This option is more promising than the above two but be ready to get your hands dirty.
Perhaps Kimiri can share some light on this.



Very valid points raised by @matatuman. The current uncertainty has really skewed market prices and though NTSA seems to be in favor of lifting the 'ban', the issue is beyond them and seems like it's headed to the cabinet for a final decision.

Third hand mat, be very careful on that. Have a very good mechanic, one with a keen eye for detail, to accompany you when doing such. Incidentally, my experience mirrors @matatuman's. There's one unit I'd got in 2011 which was in perfect condition, accident free, etc. Nikanunua, nikaitayarisha (took about a month - never do this in a hurry) kisha ikaanza kazi. Shock on me, on the second week of operations, the gearbox failed (issues to do with top-shaft and couter-gear) and I had to replace with a new one at 54k. About 10 or so months later, an engine overhaul was called for. So yes, when he tells you to have some spare cash aside for any surprises, please listen. As always, I advise to have spare cash sufficient to buy a complete engine (whose prices currently range from 280k to 450k depending on type and specs).

One final thing, as you research, don't forget to research on a good reputable and reliable garage where you will be servicing and repairing your vehicles. Pay them a visit too and see how they do their work, enquire on some charges for this or that, etc. This is very important especially for yo with a demanding day job that keeps you occupied. For this, since I did not have a vehicle at the time and therefore knew no mechanics, I enlisted the help of a relative who happened to own one at the time. Being a man in uniform, he did it all under cover and went as far as getting a quotation. Once I finally got the unit, nilienda tu nayo kwa garage na ile quotation nikawauliza 'hii handwriting ni ya nani?' The I gave them the car to work on at the prices they themselves had quoted, after slight negotiations. So far, so good.

Incidentally, if you choose to buy a locally pre-owned unit, if you can, insist on visiting the garage where it's ordinarily serviced/repaired and talk to the specific mechanics who handle it. They may have some valuable insights that the seller may be unwilling to reveal. This once saved me some potential headache.

And, when you take your mech to view some cars, please pay him a stipend for taking his time. That is over and above meeting his fare and lunch costs.


@ Rankaz. I totally agree with you. What you have stated mirrors what I did in my case. You must take care of the mechanic that is helping you to get a vehicle. Initially, my mechanic was not forthcoming in his ideas about a vehcile I had intended to buy. When I paid him, he went an extra mile when i was going to check another vehicle on a different day. we did for about four occasions on different vehicles till i settled on one which has never disapointed me.

Imagine a KAV van which looks and runs like a KBR. the first garage i took it for servicing got alot of suitors wanting me to sell the vehicle to them. The vehicle goes to kisii early in the morning and be back to Nairobi by 5pm.

So it doesn't matter the car's registration number but what matters in state of the vehicle. the previous owner of my vehicle took care of it such that he was morning as i was driving it away after settling the payment.


Very true @Kip. Had a similar experience after getting a very good KBN. Hata ikiwa parking tu hapo nyumbani as I looked for resources to prep it for work, I was getting offers to sell.

I also ensure my drivers are in good terms with the mechs and they communicate freely. Since the nature of some of our routes is quite rural and remote, we sometimes have to engage the mech at odd hours and in far away places. Thankfully, this hasn't been too often.
Life is like playing a violin solo in public and learning the instrument as one goes on.
Bykhovets
#435 Posted : Saturday, August 23, 2014 10:28:44 PM
Rank: Member


Joined: 5/17/2014
Posts: 231
@matatuman, I just heard that the owner of Murang'a Supreme Shuttle has just been shot?! Must be business rivalry. He has single-handedly caused the fares to drop from Ksh250 to Ksh100 per trip which is very favourable for commuters. But very bad for the other Murang'a-Nairobi matatu groups. This matatu business is not for the faint hearted. Cartels, Mungiks, thugs etc! Sad
"Occasionally I drop a tea cup to shatter on the floor. On purpose. I am not satisfied when it does not gather itself up again. Someday perhaps that cup will come together."
matatuman
#436 Posted : Sunday, August 24, 2014 9:33:13 AM
Rank: Member


Joined: 12/5/2013
Posts: 224
Bykhovets wrote:
@matatuman, I just heard that the owner of Murang'a Supreme Shuttle has just been shot?! Must be business rivalry. He has single-handedly caused the fares to drop from Ksh250 to Ksh100 per trip which is very favourable for commuters. But very bad for the other Murang'a-Nairobi matatu groups. This matatu business is not for the faint hearted. Cartels, Mungiks, thugs etc! Sad

matatuman
#437 Posted : Sunday, August 24, 2014 9:35:05 AM
Rank: Member


Joined: 12/5/2013
Posts: 224
Bykhovets wrote:
@matatuman, I just heard that the owner of Murang'a Supreme Shuttle has just been shot?! Must be business rivalry. He has single-handedly caused the fares to drop from Ksh250 to Ksh100 per trip which is very favourable for commuters. But very bad for the other Murang'a-Nairobi matatu groups. This matatu business is not for the faint hearted. Cartels, Mungiks, thugs etc! Sad


I've also heard. Very unfortunate it had to come to that but the guy had stepped on alot of toes. Not just Murang'a - Nairobi route. We've been doing 100 bob since May. At that fare, even a guy going to Othaya, Kangema, Kiriani or those other interior routes would rather go to Murang'a first and get connecting vehicles since its cheaper. Sadly in this business people do not realize that the cake is big enough for everyone.
MuzeeMumonja
#438 Posted : Sunday, August 24, 2014 10:58:02 AM
Rank: New-farer


Joined: 7/29/2014
Posts: 10
Location: Nairobi
Managed to convince NIC Bank to finance me 60% for a NQR 33 seater. Got a KCA B no less, hopefully going live in a few. I am in discussions with an old hand in the route am interested in to take charge of a driver/manager role. Will keep members posted of how it goes.
matatuman
#439 Posted : Sunday, August 24, 2014 11:24:29 AM
Rank: Member


Joined: 12/5/2013
Posts: 224
MuzeeMumonja wrote:
Managed to convince NIC Bank to finance me 60% for a NQR 33 seater. Got a KCA B no less, hopefully going live in a few. I am in discussions with an old hand in the route am interested in to take charge of a driver/manager role. Will keep members posted of how it goes.


Way to go man....Be careful on having your driver as the manager... Conflict of interest.
Rankaz13
#440 Posted : Monday, August 25, 2014 8:56:58 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
matatuman wrote:
MuzeeMumonja wrote:
Managed to convince NIC Bank to finance me 60% for a NQR 33 seater. Got a KCA B no less, hopefully going live in a few. I am in discussions with an old hand in the route am interested in to take charge of a driver/manager role. Will keep members posted of how it goes.


Way to go man....Be careful on having your driver as the manager... Conflict of interest.


Applause Applause Congrats @Muzee. Incidentally, which route have you set your eyes on? Careful about the driver-manager combo as advised. Should you opt for that please figure out some other control mechanism and maintain a hawk eye for the foreseeable future. And please share your experiences and challenges with us. Congrats once again.Applause Applause
Life is like playing a violin solo in public and learning the instrument as one goes on.
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