How to Start A Pick-up Transport Business in Kenya

Kenya and many other African countries face huge problems of transport not only because of bad roads but due to limited means of transport. This situation presents to your business opportunities in the transport sector. You can make an entry to this transport sector by starting a pick-up transport business. This business involves carrying goods for others from one place to another at a fee.

Pick-up Truck

Your main requirement for this business will be a reliable pick-up truck. There are many types of pickups in the market to choose from. Toyota (Hilux), Nissan, (Datsun, Sahara, Hardbody), Isuzu (Tougher, D-Max), Mitsubishi and to some extent Mazda are some of the most reliable pickups in Kenya at the moment. Peugeot 504 is cheaper but not very reliable. You will be safer buying your own pick-up for this business. For a start, go for a used pick-up to keep your costs low, but don’t fall for a junk which will cripple your business with breakdowns every now and then.

A good pick-up truck, used but in a good condition that will meet your needs as you start your transport business, will cost you between Ksh500,000 — Ksh1,000,000. The price will largely depend on the condition, make and the year of manufacture. Some may even cost much higher but when deciding which one to buy, your budget should dictate how high you can go. This will, therefore, be your major cost item in this business and it will be the heart of the business.

When you settle for the pick-up truck you want to buy, two things are very important; confirm true ownership by doing a search at the registrar of motor vehicles and also confirm true condition by having a trusted and experienced mechanic thoroughly inspect the body and the engine and do a road test. By doing this, you will get real value for your money and you will also avoid being conned.

Insurance

By law, you must insure your pick-up to get it on the road. Look for a reputable insurance company and apply for insurance. Many companies will charge you about 4% of the insured value of the vehicle when insured comprehensively. If your pick-up is too old, most companies will only accept third-party insurance, costing about Ksh6,000 — Ksh8,000 per year.

You are required to display a valid insurance sticker on your windscreen at all times, therefore, ensure this is done.

Inspection

The law requires that all commercial vehicles undergo annual inspection at the Motor Vehicle Inspection Unit. Since your pick-up is a commercial vehicle, you are required to take it for inspection and display a valid inspection sticker on the windscreen. The vehicle must be in good condition to pass and be issued with a valid inspection sticker.

Things like brakes, both foot and hand brake, lights, windows, engine and the general body must be in good condition to pass the test.

Location

This pick-up transport business requires some location to operate from. This is the place where your clients will meet you and hire you for transport service. The ideal locations include outside or next to a busy mall or supermarket, outside large and busy hardware shops, around major construction sites, near a big market or shopping center or just around the residential estates.

People in these areas will need some form of transportation as they shop for bulky and heavy things such as mattresses, beds, sofa sets, fridges, cookers, hardware and building materials while others may need to transport household goods from one place to another.

Position your vehicle in a clear and visible place where people can see you. You may display a sign to show that you offer transport services and include your contact details.

Alternatively or in addition to carrying items around, you can also go to places out of town and buy foodstuff such as cereals, vegetables, and potatoes from farmers and bring to towns to sell at a higher price to increase your income. This will require wide networks with farmers and sellers in markets in and around town.

The competition will be tight in many locations. Just be sure to offer good service and keep your vehicle in good condition and keep contacts with clients who may need your services.

Income

A good way of estimating how much to charge for your services is to have a rough idea of your vehicle’s fuel consumption per kilometer. With this in mind and the distance you have to cover, you can work out a good amount to charge. Clients will always bargain meaning it is best to always add a premium to the ideal estimate. Standard charges range from Ksh1,000 to ksh5,000 depending on the route and distance to be covered.

Many pick-up transporters collect between Ksh3,500 — ksh6,000 net per day. If you have a driver, you will part with anything between Ksh500 — Ksh1,500 per day. Some days may be dry and you may end up with nothing or less than Ksh1,000 net at the end of the day.

Challenges

Keeping your pick-up in good condition will be a challenge in this business. With roads in many areas in bad condition, servicing the vehicle will be very important. Follow the service schedule strictly to avoid unnecessary breakdowns. Your clients will be very inconvenienced in case the vehicle breaks down when you have been hired.

Traffic police have some unexplained affinity toward pickups and you have to be ready for this. They will never fail to stop the vehicle whenever they see it or get the slightest opportunity. The best way out of this is to keep your pick-up clean and in good condition all the time. Of special importance is to ensure your tires are in good condition, the brake lights and other lights are working well, inspection and insurance stickers are valid and displayed, your driving license is valid and available on the spot, you do not overload, do not carry goods protruding from the pick-up among others. If you do this, chances are that they will still stop you but you may always be spared.

Mechanics can also give you serious challenges in this business, especially roadside mechanics. Maintain a reliable and trusted mechanic who will always be the one to service or repair your pick-up when the time comes. Do not just call up any mechanic you see when you have a problem unless it is an absolute emergency. This will keep your vehicle in good condition and you will have a good maintenance history.

If you drive the pick-up yourself, you will avoid the headache of having a driver but if you have no time to do that, you will need a driver. Drivers can be a big problem because many of them may want to make some extra money on the side as they work for you. This challenge can be controlled or reduced by setting a daily target amount that he must bring in. Agree on a target amount with the driver and make it reasonable and achievable.

Originally published at PesaConsult.