Taxi Business In Kenya
Here's a detailed guide about starting and running a taxi business in Kenya
- Market Overview
Kenya has a fast-growing urban population (especially Nairobi, Mombasa, Kisumu, Nakuru, Eldoret) with high demand for transport.
Smartphone penetration is strong → fueling e-hailing growth (Uber, Bolt, Little Cab, inDriver).
Traditional taxis still thrive at airports, bus stations, and rural towns where apps are less common.
- Business Models
Traditional Taxi (Stand/Street Pick-ups):
Operates at taxi ranks, malls, airports, hotels.
Requires strong networking with hotels, tour companies, and local businesses.
E-Hailing Taxi (App-based):
Partner with apps like Uber, Bolt, Little Cab, inDriver.
Offers flexibility and access to more customers.
Hybrid Model:
Register with an app + have your own local base.
Reduces dependence on one platform.
Fleet Management (Own + Hire Drivers):
Buy multiple cars and lease them to drivers on weekly/daily targets.
- Licensing & Legal Requirements in Kenya
Register the business with Business Registration Service (BRS).
Vehicle licensing:
PSV (Public Service Vehicle) license from NTSA.
PSV insurance cover.
Road Service License (RSL).
Driver requirements:
Valid driving license (Class B or higher).
NTSA PSV badge.
- Vehicle Requirements
Popular models: Toyota Axio, Fielder, Vitz, Probox, Sienta, Honda Fit, Nissan Note.
For premium services: Toyota Premio, Noah/Voxy, or luxury cars.
Fuel efficiency is crucial due to high fuel costs.
- Costs Breakdown (Estimates in KES)
Car purchase:
Used Toyota Vitz/Nissan Note - KSh 700,000–1.2M
Toyota Axio/Fielder - KSh 1.2M–1.8M
Licensing & permits: KSh 15,000–30,000 annually.
Insurance (PSV): KSh 70,000–120,000 per year.
Maintenance & fuel: KSh 25,000–50,000 monthly (varies with usage).
- Earnings & Revenue
App drivers:
Daily gross: KSh 3,000–7,000 (before fuel/commission).
Monthly net (after expenses): KSh 40,000–80,000 (1 car).
Fleet owners:
Drivers usually remit KSh 2,000–3,500 per day.
5 cars can generate KSh 250K+ per month (net depends on costs).
- Challenges
High fuel costs.
Competition from boda bodas (motorbike taxis) and matatus.
Price wars in e-hailing apps.
Regulatory changes from NTSA.
Car maintenance & driver accountability (for fleets).
- Success Tips
✅ Choose fuel-efficient cars.
✅ Diversify - use apps + physical taxi stands.
✅ Network with hotels, airports, tour operators.
✅ Consider branding your taxi for visibility.
✅ For fleets, install tracking systems to monitor drivers.https://www.grepixit.com/blog/how-to-start-a-taxi-business-in-nairobi-everything-you-need.html