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How to Start a Tuktuk Business in Kenya

Since the introduction of tuk tuks in Kenya, many people have embraced them due to their reliability. Starting a tuk tuk business in Kenya is a profitable venture. It is a booming business and you can make between Ksh 1,500 and Ksh 3,000 in a day depending on your location. In this article, we are going to show you how you can start a profitable tuk tuk business in Kenya.

Identify a Good Business Location

You need to identify a good business location for your tuk tuk business. The tuk tuk business is best suited for busy areas like towns and market centers. You also need also to identify a route you will be ferrying passengers. Then fix prices for your tuk tuk business based on distance a customer is traveling.

Get Driving License and Insure Your Tuktuk

It is important that you take a tuk tuk driving course and get a driving license. Failure to do so, you will always be in conflict with authorities and you risk a jail term. Also, you need to insure your tuk tuk so that in case you are involved in an accident, you can be compensated. Ensure that you have at least a third-party insurance.

Read more: How to apply for a smart driving license in Kenya. 

Identify the Most Reliable Tuk Tuk Model

Before buying a tuk tuk, you need to research and identify the most reliable tuk tuk model in Kenya. The type of model to buy will be determined by its use, durability, and material it is made of. The following are some of the tuk tuk models you can consider buying in Kenya.

  • Piaggio
  • Bajaj
  • Haojin
  • Dayun

Cost of Starting Tuk Tuk Business in Kenya

The cost of starting tuk tuk business in Kenya will depend on the number of tuk tuks you intend to buy. You can start with one tuk tuk and expand your business over time. The following is the cost breakdown for a tuk tuk business in Kenya:

  • Tuk tuk price: Ksh 450,000
  • Tuk tuk driving course: Ksh 8,000
  • Driver license: Ksh 1,500 for 3 years

How much does a new tuk tuk cost in Kenya? On average, a new tuk tuk will cost between Ksh 400,000 and Ksh 500,000 depending on model, type of fuel it consumes, and engine capacity.

Read more: Best bodaboda loans in Kenya. 

How to Choose a Good Tuk Tuk

When choosing the type of tuk tuk, it is important that you consider the use you are going to put it into, durability and your budget. Also, you need to decide whether you want a diesel power tuk tuk or a petrol power tuk tuk.

When deciding whether to buy a diesel or petrol power tuk tuk, consider the weight of the luggage. If you will be carrying heavy luggage, then you need to buy a diesel power tuk tuk. If your tuk tuk is just for carrying passengers and no heavy luggage, go for a petrol power tuk tuk.

Diesel power tuk tuks are more powerful and are more fuel economy compared to petrol power tuk tuks. On the flip side, petrol power tuk tuks don’t produce a lot of noise and have low maintenance costs.

Read also: How to start a boda boda business in Kenya. 

Is Tuk Tuk Business Profitable in Kenya?

With a good business location, tuk tuk business is a profitable venture. On average, you can make between Ksh 1,500 and Ksh 3,000 in a day from the tuk tuk business. If hire a driver, you can agree with him to be bringing Ksh 800 everyday and he can keep the remaining amount as his income. The peak hours for the tuk tuk business is in the morning when people are going to work and in the evening when people are leaving work.

Disadvantages of Tuk Tuk Business in Kenya

If you are thinking of starting a tuk tuk business, you need to be aware of the following challenges:

  • Tuk tuks have become very many and there is a lot of competition
  • Tuk tuks cannot carry heavy luggage unlike vehicles
  • The demand for tuk tuks is low especially during mid-day when people are at work
  • Loss of money to dishonest drivers. You can make more profits if you decide to driver the tuk tuk yourself.

Summary of How to Start Tuktuk Business in Kenya

The tuktuk business is a profitable venture in Kenya. The demand for tuk tuk services is high, especially during morning and evening hours when people are going and leaving from work. Make sure to buy a reliable tuk tuk model so that it can serve you well and for long. Also, look for ways to overcome the challenges facing the tuk tuk business before you can venture into it.

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