I wish to venture into the transport industry but I don’t know how to access asset finance loan. I request u share with me the knowledge u got in that sector I and those who will read through this.
NIC Bank offers asset finance facilities to both NIC Bank account holders and non account holders as well. The level of finance basically depends on the client’s ability to repay. The specific terms for financing of p.s.v units are;
Finance of up to 70% of the cost of the unit / We only finance brand new p.s.v units
The maximum period of finance is 36 months/Finance can be to a SACCO, Limited entity or an individual.
However an individual will need to belong to a SACCO/a registered entity since TLB licenses are no longer being issued to individuals
For borrowing below kes.15m, the client will only need to provide original bank statements as the main basis for credit appraisal. However borrowing above Kes.15m would need to be supported by audited accounts in addition to the bank statements
If I purchase a Matatu which is the best Route to place it in and Why according to your Opinion?
There is not all that much difference in routes; not unless the road is in bad condition or traffic jammed. The daily income is almost the same. But there are some routes that have very bad reputation for harassing investors and gross extortion. take for instance Kayore and Dadora routes which are said to be controlled by cartels. In those routes, investors get a low deal since they are forced to abide by the rules set by the groups. You can not hire your own staff as the routes has their own drivers and a fixed income regardless of the flow of passengers. I can only speak well of Route 125/125 where i have been operating for the last 10yrs as i know this route to have less external interference as compared to other routes.
Which Sacco is the most beneficial according to your study of the Industry and why?
Most of the saccos especially in routes that didn’t have them before it was made a requirement have not yet come up with proper management skills that i can honestry tell you are the best. There are those that have been in operation for several years and i haven’;t seen them helping members buy new vehicles or help them in maintaining their fleet in-case of major repairs like engine knock and so on. Different Sacco’s have different ways of doing business. Most of them have been in business for year or so; We haven’t seen any buses they have bought as a sacco, so, I guess it’s the individual owners who decide what to do with the income.
How much would the Matatu be earning on average per day if its a Good Route and a Good Sacco, Give me a rough estimate In accordance to what other 33 seater’s Earn currently?
Currently a 39 seater matatu operating on route 125 makes an average of 8.000 kshs after all expenses. this is also the case with 33 seater as the fare from Rongai to Nairobi is not fixed. This has much to do with the crew and their experience in the job. I said Average- because most of the times a 33 seater makes 10.000 but there are a few bills to pay that don’t end up in the chart. If you were to invest in a mini-bus, its better to do your calculations based on that average. it leaves a happy cop, a happy driver, a full tank and a smiling conductor.
Which Sacco is the Best between MOA ,City Hoppa, City Shuttle and KBS or which one would you suggest that is the best?
The one’s you have mentioned are management companies. They are among the biggest names in the transport sector but this are not sacco but companies; either limited by shares or privately owned. This does not make them the best option if you are looking for a savings and credit kind of thing. i hear most of them demand a bigger percentage from the investor and Most of the drivers who work for those big names have a reputation of misusing the vehicles as they try to make extra cash to make up for the pay package.
I would strongly advice you to join the newly registered saccos. WHY? the reason for this is because they will involve you in the day-to day running of your investment since they only provide you with the legal requirement but leaves you to manage your fleet, hire workers of your choice and get your money at the end of the day.
How can you be sure that your matatu is well driven and well maintained and making profit?
That’s where {WE} come in. Rongai matatu workers welfare {registered} has brought together 200 plus members; all of them actively involved in matatu business. This is a new entry in the competitive running of the matatu business and it will be our vehicle to securing thousands of jobs. The idea of starting a staff management company run by matatu workers came to show the way forward to finding a permanent solution to employment in the matatu/transport sector and at the same time restore road sanity on our roads. Our task is to train/re-train competent and qualified workers. Ours will be vetting and recommending well trained and disciplined driver to any investor or institutions requiring those services.
Feel free to inquire for more information. wambururu@gmail.com
Anthony Mugo
December 18, 2012 at 9:17 am
Thanks for the above post.You might be of help to me.I want to register with route 125 for a 14 seater matatu as a new entrance.What do i require apart from my Matatu (Toyota).I need someone to introduce me to the route.
gideon
February 10, 2013 at 3:06 pm
hi wambururu.i have a nissan caravan 14 seatter and i am looking for the best route and how to get psv and tlb lissence.how do i register in a sacco and how much do i need aproximately.pliz answer me coz i am just there.u sent me ur number but i lost it.would u do me that favour again.
wambururu
February 11, 2013 at 8:01 am
Matatu business is very tricky and requires a lot of concentration and marketing to reap the full
benefits of a 14 seater van. There are various issue that add advantage or becomes disadvantages to matatu investment.
Number one-You must have at least one connection in the powers tat be, who control matatu business. Depending on who you
know and the rank he/she holds and if he/she can help in taking care of the law enforcers, you stand a better chance . If you don’t have/ know any, you need to join a sacco and hire a manager who knows
somebody. Traffic cases are very costly and time consuming- the least you can pay for a driver’s fine in courts today is 10.000 kshs. You will need to know how to take care of this area in-case your staff is caught in
the net. Some of this crackdowns you hear about are not as honest as you would like to believe; most of them are bribes driven but backed by prosecution in real courts under real laws and real convictions. That is when you need one of them to give the money to bail you out.
Now to your questions.
1. A Toyota Hiace under good management can guarantee you 3.500.00 daily.
That is to say it will make a total collection of 12.000.00
Spend 5.500 on fuel- Pay salaries of 2.000.00– about 1.000.00 will go
to cartels, police, Sacco contributions and car-wash.
2. Parking ticket for both Nairobi railways parking and Rongai-
kiseria stages are applied monthly. the CCN ticket is about 2500 and
Kajiado CC. is about 1.000.00
3. Insurance for a matatu 14 seater third party is 7.800.00 a month.
–TLB licence requires you to be a member of a Sacco and cost about
15.000.00.
4. There are different fees for joining a sacco but that can be
arranged; it is mostly between 10—15.000.00.
5. What rongai matatu welfare does is recommend a competent driver who
we know to understand matatu business. In return you will pay us 30%
commission of the agreed salary or 3.000 cash. if you hire him on
daily commission. You only pay the fee once.
6. our office is located at Stemer hardware building opposite Lunar
petrol station Ongata Rongai. we are open six days a week from 9am to
9pm.
You can reach me on 0724-384676
wambururu
April 25, 2013 at 8:27 am
gideon please get in touch. I have your thing.
John
March 1, 2013 at 1:30 pm
Hi wambururu i have been toying with the idea of matatu business for sometime but i can not be able to raise the required 5.8 million to buy a new one. This has forced me to change my choices to second hand which would cost me around 1.8 m. what worries me most is the quality of the bus i am likely to buy. am i likely to sink my money in a second hand and end up regretting? Could you please clarify this? are used buses trouble some for starters? and finally, do we have saccos which can be able to manage vehicles in the total absence of the owner i.e., total management if the owner does not have alot of time. Plus could you comment on the recent influx of buses in nairobi. Does this mean cut throat competition thus reduced incomes
wambururu
March 7, 2013 at 10:14 am
I hope my guess is right that you don’t want to take a loan to finance your investment. This is a good start for you because you are not in so much of a hurry to pay back, plus the accumulating interest.
A second hand bus can be a blessing or curse [truth doesn’t sound so well} but in business, you have to take the risk otherwise you will never know where you stand. It would be even better for you if you have people who work with institutions like colleges, universities or even companies that provide transport to their staffs; this can really help you get a company maintained second hand bus that will serve you best. You can also get lucky and buy a repossessed one from auctioneers.
The major challenge you can ever met as a bus owner is mechanical problem. And the most expensive is engine replacement which cost about 600.000 {note REPLACEMENT not repairing.} that is to say, you can afford to keep the bus on the road if the engine is okay. I would advice you to open a separate bank account for the bus and only start drawing from it after you hit the half million mark, that way you can be able to get a good night sleep knowing you are in control no matter what.
Most Sacco operate as financial platform and don’t offer much in terms of management; but there ere individuals; I included; who can run your investment smoothly with less or no involvement from the investor.We have an umbrella called matatu workers welfare where we manage vehicles, in partnership with different saccos operating in Ongata Rongai. currently we have 4 buses[ Makes 10.000 per day} 1 Minibus 25 seater {makes 7.000} 4 Toyota 14 seaters { makes 3—4—4500 per day}
The influx of buses in the city is as you have put it, it is a law in business that with high supplies demand goes down and so does the price of the commodity..
simon
March 10, 2013 at 3:40 pm
I was in a matatu bussines 3 years a go a long narok -bomet -kericho -nakuru. since then i was engaged in further studies here in the city. Now i want to make a come back.As i was searching trough the web i came a cross your information. now that i still own the 14seater matatu and the route of choice is Ongata rongai and i’m interested in joining your sacco. Please advice me accordingly.
Thankyou.