Community-Driven Taxi Service Livelihoods ProjectBack To Projects
This project, which began in 2012, involves the purchase of a vehicle, and insurance cover, for a community-driven taxi service run by Muungano wa Wanavijiji. The aim of the taxi service is to provide funds to help run the Federation's basic activities. One vehicle is in use for airport transfers for local and international visitors and for Federation business at a subsidised cost. Muungano Support Trust (MuST) and Akiba Mashinani Trust (AMT) are the major clients of the venture. MuST staff can also hire the vehicle out over the weekend. In an attempt to scale up this project, MuST is in the process of capacitating the management committee through building business management skills within Federation leadership to enable the Federation to profit from the business and by creating exposure for the car business. However, to really reach scale the Federation would have to make additional capital investments in more cars.
The purchase of one (1) vehicle in 2012.Community capacity:
The project has improved the Federation members', and particularly the committee members' business management skills. These skills will enable the taxi service to run profitably thereby generating income to make Muungano more sustainable and able to pay for its unfunded activities.Scale:
The project currently operates at the city scale, albeit at a limited capacity due to the number of cars they have. In attempts to scale up this project MuST is in the process of capacitating the management committee through creating exposure for the car business and instilling proper business management ideas to enable the Federation to generate maximum profits from the business.Impact:
The main objectives of the Muungano led investments agenda is to leverage and build a sustainable local resource base for Muungano activities and long(er) term investments. However, for this specific taxi business no major impacts have been witnessed yet. The Federation has demonstrated, however, the entrepreneurship spirit in raising its own resources. MuST is working on drawing opportunity scenarios for the managing committee to strengthen the taxi business in Nairobi. This has offered a learning experience for other Muungano investments currently being conceptualized at the grassroots level.
To maximise the project's impact, the Federation has the option of securing more capital investments with which to acquire more cars. In so doing, their market and brand reach will be broadened.Finance: SDI Contributions:
SDI contributed US$10,000 in the form of a loan (capital).Market Generated Returns:
At the end of 2014, the project has generated US$3,496.
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Project information updated: 19 October 2015
Project in depth
Skills are still to be developed from within the Federation to better manage the project. MuST is working with the Federation leadership to build these skills and devise a useful way forward. MuST and Muungano are looking at ways of ensuring the vehicles do not become dead capital. The Alliance sees a taxi business as a potentially profitable venture as the community is acknowleding the benefit of using such a service over their own vehicles.Impact:
To leverage and build a sustainable local resource based for Muungano activities and long term investment, the federation leadership decided to put these ideas to test through the purchase of scooters for a community-driven taxi service.