We play by the rules and make a decent return

Michael Ooko, 35

Mr Ooko owns a fleet of 11 14-seater matatus that ply the Kibera route.

He could not go to secondary school because his parents could hardly afford to pay his fees.

However, this did not stop him from following his dream of succeeding in life and becoming an employer.

Currently he employs 24 people — 12 drivers and 12 conductors.

“My early life pushed me into a fight with poverty and I can say I am now winning,” he says.

His business acumen is not confined to matatus only. Apart from Janadi Limited — the name of his matatu business, he also runs Kopata Steel Fabricators and General Contractors, a welding and fabricating company in Kibera.

He started with one welding machine, which he bought from an Indian contractor whose shop was closing down. Mr Ooko used to work for the Indian as a foreman.

Thanks to his determination the business has now grown to become a mega welding shop in Kibera with customers spread across the country.

He raised Sh300,000 from his welding business to pay the deposit for his first vehicle in 2009. Since then, he has been buying at least three new matatus every year. He is currently servicing a loan for the latest four vehicles.

Each vehicle brings in a profit of about Sh3,500 daily, bringing his daily income from the matatus to an estimated Sh38,500.

Mr Ooko says to win in the matatu industry, one needs to keep on-site management. Luckily for him, he got an able manager in his brother who does it him.

He also advises that instead of arguing with the police on the road, it is better to comply with the law.

However, he says the vehicles will always be faulted of something as long as the police officer stops it. He spends up to Sh30,000 a month paying court fines for his vehicles.

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Evans Somba, 34

When he dropped out of school at Standard Eight, Mr Somba got a job as a matatu conductor in Nairobi, earning a daily wage of Sh400. He soon rose the ranks and became a driver.

He came up with the idea of running a matatu of his own and started saving for it. He managed to buy his first vehicle in 2008. Two years later, he used savings from the returns of his first matatu to buy the second one. He is in the process of acquiring a third vehicle.

The former conductor now employs four people — two conductors and two drivers. His two vehicles operate on the Lang’ata route.

On a good day, he gets a net income of over Sh6,500 after deducting his daily allowance of Sh1,000, which he uses to take care of his family. On average, he makes Sh200,000 a month.

Mr Somba believes that anyone can succeed in whatever field you choose provided that the person has vision and determination.

He has a dream to expand his fleet to five vehicles by the end of next year. He aims to have high capacity vehicles.

“My greatest achievement is the fact that I have created employment for a few Kenyans and my level of education has not stopped me from living decently,” he says.

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Kenedy Kimani, 32

He worked as an administrative assistant for four months after graduating from the university with a Bachelor of Commerce degree in business administration. He soon realised that he could not flourish in employment.

He decided to quit and join a savings and credit cooperative society. With his send-off package, he got a loan and bought his first 14-seater matatu in 2008.

Although he relied on the vehicle for all his needs, Mr Kimani still managed to save enough to buy a second matatu in 2010.

Now, he earns at least Sh7,000 a day from his matatus, which ply the Westlands route. In his venture, he has employed four people.

He plans to buy two more 14-seaters this year and a high capacity one next year because of the new policy of phasing out the 14-seater matatus.

“I keep making random visits to the bus stops. That is how I am able to keep up with what is happening in the industry,” he says.

Apart from his own vehicles, he manages seven other matatus for owners who do other jobs.

Mr Kimani is convinced that determination, financial planning, and on-site management have led to his success.

“You also need to make sure your vehicle is serviced on time, lest it breaks down and the costs double or triple,” he adds.

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Mercy Mbugua, 35

A graduate of business administration, Ms Mbugua got a lecturing job at the Nairobi Institute of Business Studies after graduation, where she worked until 2009.

However, her drive to run a business led her to resign and venture into the transport business. Using her savings, she acquired her first matatu the same year.

The following year, she topped the proceeds from her first matatu and bought a second one. Her plans to acquire the third one, a 40-seater, have been slowed by the high interest rate regime in the credit market.

Her two 14-seater matatus ply the Kawangware route and bring in an average of between Sh7,000 to Sh8,000 a day. To augment her earnings, she conducts corporate training on effective business communication.

According to Ms Mbugua, the biggest challenge in the transport industry is corruption. The owners of matatus have to budget for daily bribes to the police.

“Every time a police officer stops your vehicle, you will have to part with a few hundreds, even when you have made no mistake,” she says.

“We are always making trips to police stations to complain of harassment, but any action taken is usually short-lived,” she adds.

She says the only way she has managed to keep afloat in such a business is by being determined and psychologically prepared when she ventured in to the industry.

“I knew I have to do whatever it takes to excel in this business and that is what I have done, hence my success,” she says.