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Hire purchase is considered a special system for sales and purchases. Unlike in normal sales, where one pays all the cash to acquire goods or services, hire purchase allows for payment in form of installments.

The buyer acquires the goods immediately after signing the agreement and paying the down payment. All the installments that the buyer pays are treated as hire until they pay their last installment. It is only after paying the last installment that the title of the goods is transferred to the buyer.

Hire purchase agreements

These are agreements or contracts that govern the hire purchase system. The whole process of hiring the goods to purchase them at the end of the hire purchase is outlined in this agreement. It will specify the products being traded, terms and conditions, rights of the buyers and sellers, and instances under which the agreement can be terminated. As a buyer, it is essential to read and understand the agreement before signing. This helps you make an informed decision.

Characteristics of hire purchase agreements

Some of the main features of hire purchase contracts include

  1. The buyer makes an initial payment to the owner of the goods. This is usually referred to as the down payment. The down payment is a small fraction of the total cost of the products.
  2. The buyer acquires the goods after making the down payment. The seller is usually required to deliver the goods to the buyers unless stated otherwise in the agreement.
  3. One requires paying installments to the owner after acquiring the goods. Installments can be paid daily, weekly, monthly, quarterly, or even yearly, depending on the value of the products.
  4. The title of the goods remains with the vendor even after the buyer acquires them. Ownership of the products is only transferred after the hirer makes the last installment payment.
  5. The vendor has the right to repossess the goods should the buyer default on the payments. One ends up losing any payments they had done if the goods are repossessed.
  6. The total cost of hire purchase is usually higher when compared to cash purchase. This is because the installments in hire purchase include interest. The vendor charges interest at a flat rate.

To discover more about the characteristics of hire purchase agreements, visit our blog page. Follow Kenya Credit Traders on Facebook to get the latest deals in Kenya.

A retail purchase is a transaction between a business and a consumer. A retail purchase occurs when a consumer seeks goods or services from a retailing business. In this case, the buyer will aim at purchasing the products for his or her own use. Wholesale purchases on the hand involve businesses that acquire products from other businesses and later resell them to consumers.

In modern times, retail purchases can be done through a variety of channels. In the past, one would require visiting a local store physically to find any products that they require. This is still possible in modern times. However, online purchases are also common in recent times.

The emergence of online shopping

Online shopping is common in modern times. Even before one steps out of the house to find assets, they access the internet using a phone, a tablet, or a laptop to find out the best quality, the best deals, and reliable dealers to engage. One can browse products and services from the comfort of their home or office. If you are finding the best dining sets, you can find a variety on the internet, from the best dealers such as Kenya Credit Traders. Some online retailers allow you to place an order online and they deliver the products to your doorstep.

Types of retail businesses

There is a broad variety of businesses that are considered retail businesses. This means that any assets you buy from such firms are considered retail purchases. Here are some categories of retail purchases:

  1. Food: The biggest percentage of retail purchases involve food products. We need food daily for our day-to-day activities. This means that a good percentage of our retail purchases are food products.
  2. Soft goods or consumables: This includes items that we require in our daily lives, such as toiletries, shoes, and clothing.
  3. Art: Things such as books, fine art, and musical instruments can also fall under retail purchases.
  4. Hardlines: These are assets that we need in the long run. Items such as electronic appliances, kitchen appliances, furniture, and cars can also fall under this category.

Payment options for retail purchases

Most items that are inexpensive are usually paid in cash. In the case of online retail purchases, there are plenty of mobile banking platforms that can be utilized to complete the purchases.

In the case of high-value items such as furniture, appliances, and cars, it might not be possible to make outright purchases. In such cases, hire purchase agreements become a desirable option. Learn more about hire purchase agreements on our website.

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Retail purchases involve sales of products in the form of goods or services to consumers. On the other hand, wholesale purchases involve sales of goods to other businesses that in turn sell to the consumers. When you require items for your home, business, or organization, you will always have options. However, it is important for one to make sure that they make sound financial decisions at all times. This includes selecting the best payment plan.

Payment options available to retail customers

There are two main payment plans available to consumers. One can either make a cash purchase or seek financing. Cash purchase means that one will have to pay all the cash before acquiring the products. On the other hand, financing allows you to seek help from lending organizations to purchase a given product. This is usually in the form of a loan.

Hire purchase

Hire purchase is also one of the payment plans that you can consider when in the market for assets. Retail hire purchase allows you to acquire a variety of assets, ranging from furniture, and electronics, to bigger assets such as cars and houses. It is one of the most affordable payment plans, and it has numerous benefits for consumers.

Reasons to consider retail hire purchase

As a buyer, there are numerous benefits you are set to enjoy when you choose retail hire purchase. Here are some of them.

1.      You do not have to pay all the cash upfront

In some cases, when out to buy assets, one might not have all the money. With a hire purchase, you just need a fraction of the total cost of the item. After paying this down payment, the remaining cost will be spread across a given duration, making it the most affordable way to buy assets.

2.      Own the assets at the end of the agreement

While hire purchase is almost similar to leasing, there are some differences as well. One such difference is that one becomes the owner of the asset at the end of the hire purchase agreement. Hire purchase is more like a rent-to-own agreement.

3.      Fixed interest rates

One of the best parts about a hire purchase is that the interest is fixed for all installments. In a case where one settles for term loans to acquire assets, the loans are subject to changes, depending on inflation, and other banking policies. However, if you choose retail hire purchase, you do not experience these changes, thus saving your cash.

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Hire purchase is quickly becoming one of the best payment plans for many buyers in Kenya. The many benefits that a buyer is set to enjoy when they settle for a hire purchase are one of the best reasons to choose them.

Hire purchase is the perfect option for a buyer without all the cash to purchase a given product outright. A hire purchase agreement requires you to only pay a small portion of the total cost of the product. This payment is known as a down payment. Afterward, you will make periodic payments to the vendor to clear the balance.

At Kenya Credit Traders, we have various categories of products for homeowners as well as businesses. We are the biggest and also the best hire purchase dealers in Kenya.

Hire purchase agreements

Hire purchase agreements bind the buyer and the vendor. It contains the terms and conditions of this purchase and the rights of the seller as well as the hirer. It is desirable that a hirer understands the hire purchase agreement before they sign it. Check our other article to understand more about the features of a hire purchase agreement.

Hire purchase requirements

Here are some of the features that must be included in a hire purchase agreement.

  • The items covered under the agreement, for example, furniture, kitchen appliances, mobile phones, or electronic appliances.
  • Most hire purchase agreements will also include the cash price of the item
  • The hire purchase price of the assets. This is the total amount that one pays and includes the down payment and installments.
  • The amount of the installments that one has to pay, and the dates when they need to pay them.
  • The names and addresses of the buyer, the vendor, and any other parties.
  • The rights of the buyer and the vendor.
  • Penalties and charges involved in the hire purchase agreement.
  • Circumstances that will lead to the vendor repossessing the products.

As a buyer, always buy some time to go through the agreement before signing it. This ensures that you understand the terms and conditions fully before signing up.

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Any homeowner will be on the market for furniture at some point. Investing in quality furniture not only aims at enhancing the overall worth of your home but increases functionality as well. You will never lack options when buying home furniture. One needs to focus on a variety of aspects to ensure that they get the best option for their home.

While we usually focus on other aspects such as durability, material, features, and comfort, cost and payment options available still remain part of the basic considerations. One might not have all the cash to buy furniture pieces they need for their home. This means that they would be keen to learn financing options they can utilize.

Main financing options when buying home furniture

In Kenya, you will always have options when looking for financing to buy home furniture. Here are some options you can look into.

1.      Loans

It is possible to turn to lending institutions to find the cash to buy furniture. Apart from banks, mobile loans are also very popular. One might even turn to a Chamaa and obtain a loan. However, the high interest charged on loans can deter you from buying your dream furniture.

2.      Leasing

While leasing is not popular in Kenya, it is still one of the options when looking for high-end furniture. You will need to pay installments as spelled out in the agreement. However, at the end of the lease, you will need to return the furniture pieces to the dealer.

3.      Hire purchase

Hire purchase is arguably the best option if you need to acquire home furniture to furnish your home. In this financing option, you are only required to pay an initial deposit for the furniture pieces that you need. The dealer then ships them near you or even to your home. You will then need to pay monthly installments to clear the remaining amount.

Here are some reasons to settle for hire purchase

  • Hire purchase allows you to spread the cost of furniture instead of paying one big lump sum. This leaves you with some cash to handle other essential bills.
  • After paying the last installment, you become the owner of the items. You do not have to return the items as is the case with leasing. Whether it is a coffee set, sofas, or dining tables you purchase on hire purchase terms, you become the owner after the last payment.
  • The interest rates charged on high purchase is fixed for the period specified in the agreement. This is better than in the case of loans which are controlled by the central bank rates and can change with time.

Learn more about hire purchases and available furniture by visiting our website. You can also find the latest deals on our Facebook page, Kenya Credit Traders.

When looking to purchase assets for your home or business, you will be on the lookout for payment options available. Not every buyer is capable of outright purchase. You will not always have all the cash to buy a given item. This means that you will need to consider the financing options available. In some cases, buyers seek a loan from banks, Saccos, chamas, or mobile lending apps. However, loans are usually characterized by high interest rates. This makes them out of reach for most buyers.

Why settle for hire purchase

A hire purchase is a better option when compared to a loan. All that you require is a fraction of the total cost of the item that you wish to purchase. After making the initial payment, you are required to make periodic payments known as installments.

Hire purchase vs cash purchase

When compared to a cash purchase, the total cost of a hire purchase is usually higher. The buyer is taken to be hiring the goods during the period they are paying the installments. You only become the owner after making the last installment payment. The difference between a cash purchase and a hire purchase is brought about by the interest charged on the installments by the seller.

Hire purchase vs term loans

The main difference between hire purchases and term loans is the interest rates. Term loans are subject to changes in interest rates. On the other hand, one is charged a flat interest rate when they settle for a hire purchase. This makes hire purchase a favorable option for any business owner or a homeowner looking for assets.

How are hire purchase interest rates calculated?

Different dealers usually offer different hire purchase prices for their products. Shopping around helps you identify a seller offering you the best deal. However, interest rates are almost similar for all these vendors. Here are some aspects that determine the interest rates:

  • The length of the hire purchase agreements
  • Total number of installments
  • Your down payment
  • The cash price of the asset
  • The value of the asset at the end of the agreement
  • The borrower’s credit score

Find the best hire purchase deals on our website. Also, follow Kenya Credit Traders on Facebook for great hire purchase deals in Kenya.

Lease purchase and contract hire are some of the payment options available to a buyer when in the market to purchase an asset. Each of these financing methods has pros and cons. It is thus vital to understand them before choosing any of them.

Lease purchase agreements

Lease purchase contracts are considered rent-to-own arrangements between the seller and the buyer. While this payment option looks similar to hire purchase payments, there are some notable differences. A good example is when one is out to purchase a home. If you settle for this payment method, you will initially pay the rent. However, the rent in this arrangement might be higher than the market price. The additional rent that one pays goes towards the down payment on the property.

The main difference between a lease purchase and leasing is that one has an obligation to purchase the assets at the end of the leasing contract. One makes a lump sum payment, also known as a balloon payment, which allows one to acquire ownership of the property, car, or any other assets.

Contract hire

Contract hire is the official name for leasing. When one chooses contract hire, they will acquire assets from the leaser to utilize for the period specified in the leasing agreement. However, at the end of the agreement, one is required to return the assets to the seller. This means that one doesn’t acquire ownership of the items at any given point. You will be paying for using the items throughout the contract and return them to the owner when the agreement expires with no further obligations. You can negotiate to extend the lease or you can find new items or sellers.

The best part about contract hire is that the rentals are fixed. This means that one can easily budget and make appropriate plans. One doesn’t have to worry about depreciation of the assets or even disposal when they settle for contract hire.

Learn about different financing options by visiting our Kenya credit traders Limited blog. Also, follow us on Facebook to learn about new deals and products.

Your home’s kitchen is arguably the most important of the home. You will want to find quality appliances for your kitchen to ensure meals are ready on time and without a hassle. One of the appliances one wants to purchase is a gas stove. This is usually considered a long-term decision considering that they come with high utility and long life.

Gas stoves are available in the market, and you will not lack options when looking for one. They come in a variety of sizes, styles, costs, and features. Finding the right one for your home should not be a daunting task if you consider the following aspects.

1.      The size of the gas stove

Before one enters the market to find a gas stove, it is essential to determine whether there is adequate space for it. Ensure that there is enough space in your kitchen to store the gas stove. The size of the gas stove also determines the number of burners. Stoves usually come with two, three or four burners. It is vital to select the number of burners depending on the size of your family or even your cooking habits.

2.      The material, finish, and color

The material of the gas stove determines the level of maintenance required as well as the durability of the stove. The best gas stoves are usually made of stainless steel. This aims at preventing rusting, considering that the kitchen environment is usually steamy. Steel can withstand high temperatures since it is not prone to damage. There are gas stoves that come with glass or fiber finishing. They can improve the aesthetics of your kitchen, but they are fragile and require high maintenance.

3.      Brands and features

Before investing in a gas stove, it is also vital to ensure that it is made by a reliable brand. It is also advisable to check online reviews before settling for a given brand. This helps you learn the most affordable and safe gas stove to invest in. Ramtons is one of the most trusted brands in Kenya since it is not only safe but also fairly priced.

4.      Cost and payment options

You are always likely to have a budget in mind when out to find the best gas stove to invest in. It is essential to settle for a dealer that not only sells gas stoves at a reasonable price but also offers better payment options. Kenya Credit Traders is one of the best dealers in Kenya since they allow you to purchase different appliances on hire purchase terms. This allows you to experience the benefits of a gas stove while making the payments in form of installments.

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Hire purchase is one of the most favorable financing options available to buyers in the Kenyan market. There are plenty of assets one can purchase using hire purchase. From furniture, kitchen appliances, mobile phones, and electronics, to cars and houses, there are plenty of assets a business or an individual can acquire using a hire-purchase agreement.

How hire purchase works

With a hire purchase, you do not need to have all the cash with you to acquire an asset. It is the ideal alternative when you do not have the money for an outright purchase. One needs to put down a deposit for the asset, which is a percentage of the total cost. After making this down payment, the total cost is spread over a period. This duration usually depends on the worth of the assets you are purchasing. This is beneficial since it helps protect the buyer from disruptions in their cash flow and capital.

How to get hire purchase

When you have identified the assets that you require for your home or business, it is time to find the best hire purchase deal. Here are some essential tips to help you get a hire purchase.

  • Research about interest rates: the difference between deals from one vendor to the other is usually a result of the annual percentage rate of interest. Carry out your research to understand interest rates and have an idea before committing to any deal. Here is an educative blog about hire purchase interest rates.
  • Always consider the total cost: one of the reasons one settles for a hire purchase is the flexibility that this payment option offers. However, low monthly repayments will mean a higher total cost. On the other hand, fewer months means less interest and lower overall cost. Most hire purchase dealers require you to provide financial statements to prove that you are able to pay the installments.
  • Compare deals from different dealers: Different vendors will have different deals. Take your time to compare the deals and find one that suits you. Cheaper products at times mean lower quality. The best solution is to seek value for your money.
  • Do not rush: While the benefits of hire purchase can excite any buyer, it is advisable that one takes time and read through the hire purchase agreement. Understanding the terms and conditions ensure that you make an informed decision.

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Forking large amounts of cash to purchase assets may not be viable to a business or even a homeowner in some instances. If you are running a new business, you might not have all the cash to purchase the assets that you require. Buying assets such as furniture, vehicles, or even real estate property at large amounts of money will have a great effect on your cash flow. It is the same case for homeowners. When you build, rent or even purchase a new home, you might not have all the money to buy new furniture sets, kitchen appliances, and electronic appliances that are necessary. This means that one needs to look for alternative financing options.


Renting assets rather than physically owning them is one of the financing options you can utilize. This makes sense, especially for items that you won’t need in the long run. It is also a considerable choice for items whose value is expected to depreciate over time. Leasing involves acquiring assets from the leaser. You will be required to pay monthly installments for the period specified in the lease agreement. After the expiry of the agreement, you will have no further obligations. You can choose to extend the lease and retain the items, or you can move on to another lessor.

Hire Purchase

Hire purchase is almost similar to leasing, although there are some notable differences. This involves paying an upfront amount of cash as a down payment. This is usually a fraction of the total cost. After the down payment, you acquire the assets and utilize them as your own. You will be required to make monthly payments as per the contract. The good part about a hire purchase is that you will become the owner of the items after paying the last monthly installment.

Considering hire purchase vs leasing

Both hire purchase and leasing have benefits as well as shortcomings. The decision thus depends on your individual circumstances and needs. Here are some of the factors to check:

·         Frequency of use

If you only need a given asset for a short period of time, it is not advisable to purchase it through a cash purchase or even a hire purchase. Leasing is the most desirable option in such cases.

·         Lifespan

One also needs to check when they will require upgrading a given asset. It is not worth investing in an item that will be outdated soon. A short-term lease makes sense for such items.

·         Restrictions

When you settle for leasing, there are some restrictions on how to use the given items. Since you will b returning the items to the leaser, you might be charged additional costs if you didn’t consider the restrictions. Hire purchase doesn’t have such restrictions, considering that you will become the owner at the end of the contract.

To keep learning about hire purchase in Kenya, visit our blog page. Also follow us on Facebook, Kenya Credit Traders for the latest, hottest deals on hire purchase.