Matatu business in Kenya (2026): costs, Sacco rules, daily targets and real returns

The matatu is the backbone of Kenyan transport: the Matatu Owners Association estimates around 200,000 of them nationwide, about 20,000 in Nairobi. It can be a strong business — and it is a capital-heavy, regulated one, where the gap between a good owner and a struggling one is almost entirely cost control and collections.

The figures below come from the chairman of Super Metro, a member of the Matatu Owners Association, and published industry reporting. Use them to plan; your Sacco and route set the real numbers.

What the vehicle costs

• 14-seater (Toyota Hiace, Nissan Caravan): importing and clearing a used unit costs about KSh 2.5–4 million depending on age. Nairobi has halted registration of new 14-seaters, so many owners buy an existing registered unit — around KSh 400,000–600,000 — and modify it, adding roughly KSh 200,000 or more.
• 25-seater (Isuzu NQR chassis): about KSh 4.3 million.
• 33-seater with a standard body: about KSh 6.7 million. Isuzu lists the NQR81M 33-seater at KSh 7,071,000; on asset finance, that has been offered at 5% down (KSh 353,550) and KSh 162,855 a month for 72 months.
• Customisation — premium seats, Wi-Fi, screens — can add KSh 2–5 million on a bigger bus.

Check the import duty on a Hiace or Caravan with the import duty calculator, and the loan with the car loan calculator.

The Sacco: compulsory, and it shapes everything

Since 2010, every matatu has had to operate under a registered Sacco or company. The Sacco allocates routes, controls branding and stages, and is the body the authorities deal with. Joining costs vary widely:

• Super Metro's chairman puts it at a KSh 5,000 registration fee and KSh 10,000 share capital, with dividends on shares each year.
• Other Saccos charge per share — for example KSh 10,000 a share with a minimum of ten — and some route Saccos charge far more depending on vehicle size and route.
• Members also pay weekly or monthly deductions for administration, branding and services.

Licences and compliance, every year

Insurance

Matatu cover is priced by seats, route and cover. Industry figures put third-party cover at about KSh 20,000–200,000 a year and comprehensive at roughly 5–15% of the vehicle's value. Some Saccos negotiate group rates. Check any insurer is licensed and trading — see PSV insurance.

How the money works: the daily target

Most matatus run on a target: the owner (or Sacco) sets a daily amount the crew must bring in; the crew keeps what is left after the target and fuel. Crew pay is typically KSh 1,000–2,000 a day each for driver and conductor.

What owners actually keep, per industry figures:

• a 14-seater: up to about KSh 3,500 a day;
• a 33-seater: up to about KSh 15,000 a day, with new Nairobi buses reported at up to KSh 10,000.

From that come the loan, insurance, Sacco deductions, licences, parking and repairs. On a financed 33-seater, the KSh 162,855 monthly instalment alone is about KSh 6,300 of every one of 26 working days.

Where matatu owners lose money

• Days that slip. A crew short on Tuesday and Wednesday is a week's profit gone by Saturday. Knowing the same evening is the whole game.
• Downtime. A bus off the road for repairs or a lapsed licence earns nothing; insurance and loan payments do not stop.
• Cash. Targets handed over in cash at the stage leave no record. Payment into the owner's till does.

Gariboss is built around exactly this: a daily target per vehicle, payments into your own till, and one message every evening saying who paid and who is short. Running a Sacco? Talk to us about the Sacco plan.