How to Start a Profitable Taxi Business in Kenya

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There has been a high demand for taxis in Kenya. People do not want the hassles of using public cars due to challenges like noise and delays. This guide will help you know how to start a taxi business in Kenya.

Requirements to Start a Taxi Business in Kenya

These are some of taxi business requirements needed in order to start a taxi business in Kenya.

  • Have a vehicle registration certificate
  • Have a vehicle inspection certificate
  • Have PSV insurance certificate
  • Have operating License

To become a taxi driver, you need to meet the following requirements:

  • Be at least 21 years of age
  • Pass the driving test
  • Have three years of driving experience
  • Have a clean driving record
  • Have a national identity card
  • Have a certificate of good conduct

How to Start a Taxi Business in Kenya

To start a taxi business in Kenya, you can choose to drive a cab or operate the cabs as a manager. Whichever works best for you, there are few things you need to know.

  1. You need to have a best car for taxi business in Kenya, which is usually a 4-door car that is in good condition. Also, make sure that the car is the latest model.
  2. Make sure that the car is always clean and neat, both in the interior and exterior.
  3. Hire qualified and professional drivers and one’s who meet the National Transport and Safety Authority (NTSA) requirements.
  4. Get insurance cover for your taxi can and also the drivers and passengers
  5. Have the preferred colors like white black or grey on your car

Is Taxi Business Profitable in Kenya?

John Njoroge quit his job with logistics company to start a taxi business. On the best days he would be pocketing Sh5, 000 on a good day and as low as Sh1,000 on days when demand for services are lower. This is what he says about working as a cab driver.

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The taxi business is a very competitive market to work in. Most people also need to take out a loan in order to get going. It requires hard work often, making many hours. And because you also need to meet the monthly installment payments of the outstanding loan, you also need to work enough each month.

Positioning oneself by signing up across different taxi hailing mobile phone applications is what makes a difference at the end of the day. However, challenges are many.

Best Cars for Taxi Business in Kenya

Buy a Car with a Small Engine for Taxi Business

how to start taxi business in kenya
Sedan cars are suitable for the taxi business in Kenya.

Any business aims to make profits. As such, you need to buy a car with a small engine that will ensure efficient fuel consumption. It means that you will not need to fuel the vehicle frequently and thereby increasing your profit margins.

Less Maintenance

You must buy a car that will not need frequent repairs. Make sure to buy a new car or a well maintained second-hand car. Maintenance costs will be eating away your savings and profits from your business.

Boot Space

When starting a taxi business, you need to consider the boot space. You want a cab that can carry large luggage and also get storage space for other essentials like the spare wheel, first aid kits and a car jerk.

Passenger Space

A good taxi car needs to have sufficient foot space for your passengers. You do not want a situation where your passengers are not comfortable. Having a foot space will make your passengers enjoy their journey and want to hire you again.

Four Doors

Cars for Tax should have four doors for easy boarding and alighting of passengers. Cars with high step are not recommended for taxis.

Model of the Car

Sedan cars are suitable for the taxi business. Most of them should have an engine cc of between 1000 and 1300. The following are some models of the vehicles that are suited for the taxi business.

  • Mazda Demio 1300cc
  • Nissan March 2006 model and above
  • Nissan Note between 1200cc and 1300cc
  • Toyota Belta 1000cc and 1300cc
  • Suzuki Swift 2006 model and above
  • Honda Fit 2006 model and above
  • Honda Insight 2006 model and above
  • Toyota Vitz 1000cc and 1300cc

How to Operate Your Taxi Business

The other thing you need to consider is how to operate your business. You can take advantage of the booming online taxi business in Kenya. For instance, you can opt to partner with Uber. Alternativey, you can operate the business as a sole proprietorship. If you partner with Uber, you will be getting 75 percent and Uber takes 25 percent of your revenues.

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If you start with more than one taxi or you end up having more than one taxi in the long run, you will need to hire taxi drivers. Make sure that your taxi driver meets the required requirements for a taxi driver in Kenya. These will include a national ID, driver’s licence, police clearance certificate, etc.

Advertise and Automate Your Taxi business

The other thing to do is to let people know that you are operating a taxi business. It’s good practice to have business cards with you. You can also advertise your services online or through social media platforms. It is good that you automate your taxi business so that people can book your services online. You can also sign up across different taxi hailing mobile phone applications. This is essential if you want to have enough customers.

Leading Taxi Companies in Nairobi

  • Maramoja,
  • Uber
  • Taxify (Bolt) – Lots of rides, low pay. Need only to provide basic car.
  • Little Cab
  • Little Ride
  • Mondo Ride
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