February 28, 2025
The matatu business is one of the most popular and lucrative transport ventures in Kenya.
With thousands of Kenyans relying on public transportation daily, owning and managing a matatu provides a steady income source.
Whether you plan to start with a single vehicle or expand into a fleet, understanding the industry dynamics, costs, and challenges is essential for success.
Four key factors support profitability from starting a matatu business in Kenya, namely:
Matatus are the backbone of Kenya’s transport system, especially in urban areas like Nairobi, Mombasa, and Kisumu.
With millions of commuters traveling daily, there is consistent demand for matatu services.
Matatus operate on multiple routes, offering flexibility to tap into profitable areas.
Daily collections vary but can range from Ksh 3,000–10,000 per vehicle depending on the route and time.
Starting with one matatu provides a gateway to building a fleet. Profits can be reinvested to acquire additional vehicles, expanding your income potential.
The matatu business supports livelihoods for drivers, conductors, and route operators, making it both a profitable and impactful venture.
Let’s explore how to start and manage a successful matatu business in Kenya
Understanding the matatu industry is critical before making an investment.
Key factors to consider when conducting market research for a matatu business include:
Research the most profitable routes in your area. Routes with high commuter traffic, such as Nairobi CBD to Ongata Rongai, tend to be more lucrative.
Analyze the number of matatus operating on your chosen route.
Familiarize yourself with government policies, SACCO membership requirements, and route permits.
Focus on routes with high traffic but manageable competition to maximize profitability.
Owning and operating a matatu requires significant capital, especially for purchasing the vehicle and meeting compliance costs.
Estimated costs when starting a matatu business in Kenya include:
Ksh 2.5M–4M for a 14-seater or 33-seater minibus.
Ksh 1M–2.5M, depending on the vehicle’s condition.
Ksh 30,000–50,000 annually.
Ksh 50,000–100,000 annually for comprehensive coverage.
When buying a matatu, consider factors such as durability, capacity, and fuel efficiency.
Popular Matatu Models in Kenya’s matatu industry include:
Reliable and fuel-efficient.
Common for 33-seater minibuses, offering higher capacity.
In Kenya, matatus must operate under a SACCO (Savings and Credit Cooperative Organization) as mandated by the NTSA.
Notable benefits of Joining a matatu SACCO include:
Identify a SACCO operating on your preferred route.
Submit required documents, including logbooks, insurance certificates, and your ID.
Pay membership fees (Ksh 10,000–50,000 depending on the SACCO).
The success of your matatu business depends heavily on the team managing your vehicle.
The two key staff roles in the matatu industry are:
Should have a valid PSV (Public Service Vehicle) license and knowledge of your route.
Handles passenger boarding and fare collection.
Matatus are heavily regulated in Kenya to ensure safety and order.
Licenses and Permits required when starting a matatu sector include:
Required for both the vehicle and its operators.
Grants permission to operate on specific routes.
Issued by NTSA after vehicle inspections.
Comprehensive insurance is mandatory for matatus, covering passenger liability, third-party damage, and vehicle repair.
Running a matatu involves overseeing collections, maintenance, and route performance.
Key considerations in the day-to-day operations of a matatu business include:
Most matatus have a daily income target ranging from Ksh 3,000–8,000, depending on the route.
Regular servicing ensures the vehicle remains operational and avoids costly breakdowns.
Use tracking devices to monitor routes, fuel usage, and driver behavior.
While profitable, the matatu business also faces challenges including
Some routes are overcrowded with vehicles, lowering daily revenue.
Choose less competitive routes or offer better services, such as cleaner interiors and free Wi-Fi.
Some drivers and conductors fail to meet daily targets or mismanage collections.
Implement strict reporting and regular audits.
Constant changes in policies and crackdowns can disrupt operations.
Stay updated on NTSA requirements and comply fully.
Frequent wear and tear due to long operating hours can eat into profits.
Schedule preventive maintenance to reduce breakdowns.
Matatus can be highly profitable when managed well:
Ksh 3,000–10,000, depending on the route and capacity.
Ksh 90,000–300,000.
Ksh 50,000–70,000/month.
Ksh 30,000–40,000/month (driver and conductor).
Ksh 20,000–30,000/month.
After expenses, a single matatu can generate Ksh 40,000–150,000 monthly, depending on route performance and efficiency.
The matatu business in Kenya offers a reliable and lucrative income stream for investors willing to navigate the challenges of the transport sector.
With high demand for public transportation, strategic route selection, and effective management, a single matatu can generate significant returns.
However, success requires adherence to regulations, careful staff selection, and consistent vehicle maintenance.
Whether you’re starting with one matatu or planning a fleet, this business provides a steady and scalable opportunity in Kenya’s growing transport industry.