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How to Start a Taxi Business in Kenya

Vincent Nyoike
Vincent Nyoike Kenyan SMEs

With the high cost of living and the high number of cars on the Kenyan roads, many people are opting to use taxis to travel. There are many taxi companies that have come up in the recent past and are helping people to commute across the country.

Companies also prefer to hire taxis for their workers to commute when they are on official duties.  Therefore, if you are thinking of starting a taxi business in Kenya, there is a ready market. This is how you can start a taxi business in Kenya.

You can decide to start a taxi business on your own or partner with companies like Uber. If you decide to partner with them, you need to download the Uber Partner Application via Google Play Store. Then install the application and create a profile on Uber partners. Fill in your personal details and that of your car.

You need to register on the Uber system with the following documents.

  • Driving license
  • Vehicle certificate of registration
  • Vehicle certificate of inspection
  • National identification card
  • PSV car insurance certificate
  • PIN certificate
  • Police certificate of good conduct

Read also: How to start a car rental business in Kenya.

Uber Car Requirements to Start a Taxi Business

To start a taxi business in Kenya, your car must meet the following conditions:

1. The car must have 4 doors and be the Year 2013 model or newer

2. The car must be neat and clean, both interior and exterior

3. The driver must be a professional and meets NTSA’s requirements

4. The car must be insured and have a driver’s and passengers’ cover

5. Have adequate boot space where you can keep a car jerk, spare wheel and client’s luggage

Best Car Models for a Taxi Business

When starting a taxi business, you need to go for an economical, but durable car. This means that the car is not expensive and does not consume a lot of fuel. Go for a car with a small engine size; not more than 1500cc. This will give you a bigger profit margin.

Some of the best car models for the taxi business in Kenya include:

  • Mazda Demio – 1300 cc
  • Toyota Belta – 1000 cc and 1300 cc
  • Toyota Vitz – 1000 and 1300 cc
  • Honda Fit – 1300 cc
  • Nissan Note – 1300 cc
  • Nissan March – 1000 cc

Read more: Economical and fuel efficient cars in Kenya. 

Cost of Starting a Taxi Business in Kenya

The cost of starting a taxi business depends on the size and nature of your business. You can a taxi business with one car and grow your business with time. To buy a good car for the taxi business, you need at least Ksh 750,000.

You also need an additional Ksh 250,000 to insure the car, acquire business licenses and register your business. Therefore, you will need around Ksh 1 million to start a taxi business in Kenya.

Is Taxi Business Profitable in Kenya?

The taxi business is a profitable venture especially if you are in a busy town. On a good day, you can make up to Ksh 5,000 and Ksh 2,000 when the demand is low. Set up your business in a busy town. For instance, if you are near an airport, you can make more money driving tourists around.  

You can also liaise with companies to get contracts to carry their staff when they are travelling on official duties.

Read also: How to start a car wash business in Kenya. 

Market Your Taxi Business

You need to market your taxi business to get many clients. One of the ways to do this is by placing a taxi sticker and branding your car. This will help people know that you offer taxi services.

The other way is social media advertising. You can have a page for your taxi business. Indicate the services you offer and their prices and people will reach out to you when they need these services.

You can also develop a mobile application so that people can easily request taxi services. Start accepting mobile payments from your clients since many people are avoiding to carry money around and opt to use mobile payments to pay for goods and services. 

Top Taxi Companies in Kenya

When venturing into the taxi business, you need to be aware of your competitors. The following are some of the leading taxi companies in Kenya.

  • Uber
  • Bolt
  • Liitle Cab
  • Sendy

Conclusion

The taxi business is one of the best businesses in Kenya. Starting one in a busy town like Nairobi or Mombasa, you can be sure to be making up to Ksh 5,000 a day. Make sure to automate your business by developing app clients can use to request a taxi and also make payments through mobile money services. Finally, market your taxi business and offer excellent customer service.