Features & Sacco Leadership

Who owns Arbab Ventures Limited? unveiling the success story of Salah Ahmed

Salah Ahmed

Arbab Ventures Limited, formerly known as Tel Aviv Travelers, has established itself as a prominent player along Nairobi’s South-C route, solidifying its position as a dominant Sacco within the market. The success of this venture can be attributed to Salah Ahmed, one of the co-founders, who shared key insights into the matatu business during a recent interview with one of the local media houses.

Salah Ahmed’s journey to success involves a strategic focus on maintaining the fleet in optimal condition. In a candid discussion, he revealed that his approach included acquiring vehicles at affordable prices and then investing in necessary repairs and enhancements. His first matatu, purchased at Ksh350,000, served as a starting point, emphasizing the importance of buying quality vehicles that contribute to optimal performance.

Salah Ahmed: How to Join Matatu Business in Kenya

  1.  Buying the Vehicle

Ahmed emphasized the significance of performance and advised prospective owners to allocate a reasonable budget, recommending around Ksh500,000 for a first-time purchase. The choice between a bus and a minibus should align with the budget, considering the substantial costs involved in operating the business.

  •  Finding the Right Staff

Acknowledging the pivotal role of drivers and conductors in the business, Ahmed highlighted the need for disciplined and trustworthy staff. He suggested a commission-based model for payment, where staff members have earning targets based on completed trips.

Salah Ahmed
  •  Obtaining Appropriate Licenses and Insurance

Compliance with regulatory requirements is crucial, requiring permits, licenses, and insurance. The National Transport and Safety Authority (NTSA) mandates inspections, road service licenses, valid driver and PSV licenses, and certificates of good conduct. Additionally, obtaining permits from the county government and securing genuine PSV insurance are imperative.

  •  Branding, Modifications, and Fabrication

Ahmed emphasized the importance of enhancing the visual appeal of matatus, referring to the process as “pimping.” This involves interior and exterior modifications, such as comfortable seating, spray painting, branding, tuning, and sound system installations. While these enhancements contribute to increased earnings, they also come with significant costs.

  •  Sorting Saccos and Routes

Matatus must be part of a Sacco to obtain licensing, with each Sacco having designated routes. Ahmed highlighted the importance of route extensions and the need for multiple fleets to apply for extended routes, considering the government’s emphasis on decongesting the city.

Also Read: What is the minimum share capital in a Sacco? a key element of ownership and finance

Despite the success of Arbab Ventures Limited, the matatu industry faces challenges, including cartel-related issues, loss of vehicles, and revenue reduction during the COVID-19 pandemic. Ahmed recommended addressing challenges through measures like GPS tracking, reporting unprofessional conduct, and adapting to evolving circumstances.

Andrew Walyaula
Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

Andrew Walyaula

About Author

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

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