traciyoshiyama    Mar 26, 2013

Dear lenders,

My name is Traci Yoshiyama and I am a Client Relationship Manager for Zidisha.

Mr. Wanyoike has informed me that due to family challenges and money having to be spent on the well being of his children and wife, he was unable to make any installments towards his Zidisha loan. He is also currently without work because his matatu (vehicle) was taken as collateral from another loan service. He thanks everyone for their patience while he sorts everything out.

Lenders, if you have any questions regarding Mr. Wanyoike, please do not hesitate to contact Zidisha! We wish Eutycus all the luck with his work and family.

Best,
Traci Yoshiyama
Client Relationship Manager

dcembrola    Dec 18, 2012

December 18, 2012

Hello, my name is Dan Cembrola, one of Zidisha’s Kenya Client Relationship Managers. I am currently visiting Zidisha borrowers in Nakuru and its outskirts.

Today I visited with Eutycus at his the Langa Langa matatu station in Nakuru. Matatus are large vans with seating for 12 people. They serve as the main source of transportation in Nakuru and across the country. Matatus are utilized for transportation around the city, out to rural areas, and to other metropolises such as Nairobi and Kisumu. Though they have seating for 12, matatus are routinely overcrowded with the average matatu having closer to 20 passengers at any given time.

Eutycus has always been fascinated by cars and driving. His father was also in the transportation business. Four and a half years ago, Eutycus began working as a conductor on a matatu. The role of the conductor is to recuit customers for the matatu, help people and their belongings on and off, and collect money from the customers. After two years spent working as a conductor, Eutycus started driving matatus. Drivers are more highly compensated than conductors. Gaining experience driving is important, traffic is hectic, many people drive recklessly, and the roads can be poor and full of obstacles.

Eventually Eutycus was able to purchase his own matatu. Getting a matatu business can be started can be a laborious process. Licensing costs around $700 USD. He also spent $2,000 USD on maintenance and repairs to ensure the matatu can handle the often bumpy roads. He also has a monthly tax of $35 USD paid to the local municipality and $115 monthly insurance cost. This insurance only covers the passengers and any pedestrians that are injured by the matatu. Any damage to the vehicle is not covered.

Eutycus had used his first Zidisha loan to make some final improvements to his matatu that will make the vehicle better suited to complete the longer and more profitable routes. He currently makes about $15-20 per day, after paying his conductor and factoring in the cost of gas, he profits about $10. These numbers are for operating the matatu on short trips within Nakuru. After making improvements to his matatu, Eutycus will begin transporting passengers to the major cities in western Kenya of Eldoret and Kisumu. A trip to and from either city can be done in a day from Nakuru. He'll make $30-35 making those trips.

With his next loan, Eutycus plans to continue to expand his business. His long term plan is to save the profits from his new long distance matatu business. He wants to combine his savings and next loan to purchase a new matatu.

Eutycus will begin making payments on the 28th of this month. Like matatu drivers nationwide, Eutycus suffered a setback when matatu owners and drivers went on strike in protest of a new government law that imposed more strict sanctions on matatu drivers. The new government law intends to make matatu travel more safe by limiting overcrowding and speeding. The penalties were also raised for matatus that violated these rules has also been increased. The strike handicapped travel for close to a week, the law remains in place, though it doesn't seem to be enforced. Regardless, Eutycus lost several days of business and is now working to make up for the lost time.