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Hire Purchase Vs Lease – Which One Is Right for You?

Leasing and hire purchase are some of the asset financing options available in the modern market. Most of the items we aspire to own in modern times can be expensive. From smartphones, kitchenware, electronics, and even solar products, we might not have enough money to make cash payments.

When you choose to hire purchase, you immediately gain possession of the asset after making the down payment. You will have the chance to utilize the item before making full payment. This is one of the major benefits of hire purchase.

Leasing, on the other hand, is a contractual agreement where you pay the lessor to use their asset. The payments are made within a given period of time. Here we explore the major differences between the two financing options.

The decision on the financing option to take depends mostly on the value of a given asset. Lease agreements are ideal for costly assets such as machinery, land, and property. Lease agreements are usually between two businesses. Hire purchase is ideal for less costly items such as household furniture, and electronics.

Differences between leasing and hire purchase


When you purchase furniture, TVs, kitchen appliances, or any other assets on hire purchase terms, you acquire possession immediately you make the down payment. One is also required to make monthly payments to fully acquire ownership of the items. On the other hand, at no point does one becomes the owner of the asset in a lease agreement unless it is a rent-to-own agreement. One will have to buy the asset before the expiry of the lease.

Upfront payments

When you buy items on hire purchase, you require paying a fraction of the total cost as the down payment. This is called the principal amount. One needs to clear the total cost by paying monthly installments. On the contrary, one doesn’t require a down payment when it comes to leasing.


The value of a given asset is one of the primary considerations when choosing between hire purchase and lease.

Lease agreements usually cover enormous assets such as vehicles, machinery, property, and land. They thus need a longer duration. Hire purchase agreements are the ideal choice for household or personal items such as smartphones, TV sets, household furniture, etc. Payments are thus made within a shorter duration when compared to lease agreements.


The Different Types Of Hire Purchase

When in the market for expensive assets, one of the best options you can make is choosing a hire purchase payment plan. There are many benefits that one enjoys when they opt for hire purchase.

One such benefit is that you will acquire the asset at just a fraction of the total cost. You are allowed to utilize it before you can make the full payment. At the end of the repayments, one will become the owner of the asset, unlike in the case of a lease agreement.

Forms Of Hire Purchase Agreements

There are two main types of hire purchase payment plans. The main difference occurs in how financing is obtained.

  • In the first type, the assets are purchased from the dealer by the financier. Afterward, the financier will negotiate with the customer to come up with the agreement. After the agreement, the customer is allowed to utilize the asset. The financier thus becomes the owner of the items purchased until the hire purchaser pays the last installment. The dealer gets the money from the financier. The financing agent in turn recovers the cost of the asset from the customer. In the case the buyer defaults on payment, the financier has the right to recover the asset.
  • In the second form of hire purchase, it is the customer that approaches the dealer for the assets they intend to purchase. They will enter into an agreement with the seller. After one pays the deposit, they have the chance to utilize the items purchased. However, transfer of ownership is completed after payment of the last installment. The vendor has the right to seize the assets or items in the case of non-payment.

At Kenya Credit Traders Limited, we have valuable assets in the form of furniture, electronics, kitchenware, and even appliances. Visit our store to place your order.

Hire purchase as a financing option

Hire purchase plans have become a common financing option in our modern times. Businesses, as well as individuals, prefer using hire purchase to buy new assets. The many benefits of hire purchase are the primary reason to utilize this financing option.

Areas of interest when signing a hire purchase plan

Regardless of the items, one wants to purchase, there is a need to ensure that you get the best hire purchase agreement. Here are some areas of concern before signing a given plan.

The asset you need to purchase

The quality, quantity, and condition of the assets you intend to purchase are part of the basic considerations. One should not purchase items on hire purchase just for the sake of it. It is always desirable that you buy items that you need. If you have a new home, purchase furniture, electronic gadgets, and kitchen appliances that you require. At Kenya Credit Traders Limited, there are a lot of items that we need in our homes, available on hire purchase terms. All our products come in perfect shape as we offer the best quality available on the market.

Ability to pay off the cost of the items

At times, hire purchase can be tempting to any person. The installments payment can tempt you to purchase items beyond your reach only to get difficulties when out to complete the payments. One needs to assess their income and frequency and ensure that it is possible to pay the installments when they are due. When one is unable to clear the payment, the seller has the right to repossess the assets, and you will lose payments you have already made.

The total cost of the assets

When buying household items on hire purchase, one is required to make a down payment before delivery is done. Afterward, you are required to make monthly installments as specified in your plan. The total cost includes the deposit and the installments. Since you are paying in installments, the seller also adds some interest. Before signing any hire purchase plan, ensure that you are getting value for your money.

Delivery and ownership transfer

The best hire purchase plans specify how delivery is done. Kenya Credit Traders Limited delivers all the items to the branch near you. The date to transfer the ownership also ought to be specified in the plan, as long as you have met all the set conditions.

Visit our online store to find all assets available on hire purchase terms.

Adding a Smart TV to Your Living Room

Adding a TCL smart TV to your home is one of the best decisions you will make. Our mind feed on information and TVs serves this purpose. We get access to the latest happenings in our country through news updates.

Apart from access to news updates, choosing to invest smart TV in your home opens the door to a whole entertainment experience. They combine all the benefits that came with free-to-air TV sets, pay TV, and the unlimited potential of the internet.

Streaming content is also part of the primary benefits of smart TVs. You will have access to numerous streaming services and apps such as YouTube, and Netflix, among others, changing your whole TV experience.

Reasons to purchase TCL smart TVs


When in the market for a TV, there is no doubt the price is always a primary area of concern. One of the best reasons why TCL takes the market by storm is its affordability. By opting to purchase a TCL smart TV, you will enjoy high-quality displays. When compared to other TV brands on the market such as LG, Samsung, and Sony, TCL is the most affordable option.

TCL Smart TVs come in a variety of sizes. Whether you want a 32” HD smart TV or the 75” 8K QLED TV, the TCL brand is always the best option.

Kenya Credit Traders Limited allows you to purchase Smart TVs on hire purchase. You immediately get possession after paying the deposit.


If you are looking for a quality TV that adds life to your living room, consider buying the TCL smart TV. These smart TVs come with improved visual quality and acuity, as well as powerful processors, guaranteeing nothing but the most amazing images. The best part about TCL as a brand is that they prioritize audio quality. Some of the models will come with an integrated soundbar.

TCL smart TVs are highly rated by customers. They get the best reviews compared to other TV models.


You will not be short of options when out to find the right household furniture pieces for your home. Your home is without doubt your most valuable asset. Home is where you relax after a long day’s work. It is where family magic happens. It is thus vital to make it comfortable at all times. Investing in quality appliances, furniture, and even kitchen utensils are some of the ways to make your house a dream home.

From the local furniture shops to high-end retailers in major cities, one will always have choices. Here are some essential tips to guide you and make sure you only make the correct decisions.

  • Choose The Right Dealer

Finding the right dealer is the first step toward finding quality furniture for your home. You can only have a guarantee for top-notch services if you identify a reliable dealer. If you choose online traders such as Kenya Credit Traders, check reviews and testimonials on their website written by other customers. When other customers are content with the services offered, you are also likely to be satisfied by the services rendered.

  • Find Household Furniture Online

In modern times, online shopping is the way to go. You can save yourself a lot of hassle by visiting online stores. You will also save your money and time by choosing Kenya Credit Traders to deliver furniture for your home. When you purchase furniture online, you do not need to visit the store in person. You can view furniture pieces that are available online before placing your order. Whether you need a 4-seater Mahogany dining set, a 6-seater dining set, or a 6×6 mahogany bed, you only need to visit our store, place an order, and expect the delivery to a branch near you.

  • Buy Furniture On Hire Purchase

You might be on the market for furniture pieces to furnish your recently constructed home. One might also be looking for furniture after relocating to a more spacious house. This means that you might be low on cash. Hire purchase dealers allow you to acquire quality furniture for only a fraction of the total cost. You can clear the balance through monthly installments while using the furniture in your home.

Visit our site to view available furniture pieces.



Are you in the market looking for the latest home electronics? You will never be short of options. Keep reading and learn some tricks to help you get quality the best deals on electronics in Kenya.

Your home is without doubt your most valuable asset. It is where we retire after all the hassles that come with our day-to-day activities. One thus needs to invest in making the home more comfortable. You can achieve this goal when you purchase the latest home electronics.

  • Consider finding electronics online

There is a shift from in-person shopping to online shopping in recent times. This can be attributed to many benefits that come with finding electronics at an online store such as Kenya Credit Traders Limited. One such benefit is that you can save time. You do not need to move from one electronics store to the other looking for the best home electronics to buy.

You only need to use your phone or laptop to place an order at our online store. The product you select from our store will be delivered to a branch near you. You can easily compare different products to identify the ideal one for your home. If you are looking for the best subwoofers, you will have a variety of options at our online store to choose from.

  • Focus on determining the best electronics dealer

The fear of falling to scammers is one of the reasons why some people are yet to embrace online shopping. It is vital to choose a trustworthy dealer since this is the first step a buyer takes toward finding quality home electronics. Check reviews, comments, and ratings on the dealer’s website before placing an order.

  • Choose the best deal

When buying electronics, do not only focus on savings. At times, cheap items are substandard. One should thus focus on getting value for your money. By choosing Kenya Credit Traders, you can enjoy hire purchase terms for any home electronics you need. This allows you to pay a deposit and collect your item. You can clear the balance in monthly installments.

Visit our store and find the best deals on home electronics.


When you want to purchase something for your home but you do not have all the cash at hand, then it is worth considering a higher purchase mode of payment. Hire purchase is a great way to get the asset that you want even when you do not have all the required money.

How does hire purchase work?

When you opt for a hire purchase to buy assets such as appliances, electronics, or furniture for your home, you will only be required to pay a deposit. This is usually a fraction of the total price of the asset you intend to purchase. According to the agreement between you and the seller, you will be required to pay the balance within the set duration. In the case of personal assets, the installments are spread out over several months. This helps you to spread out payment. After paying the deposit, the asset you need will be delivered to your home. However, its ownership will be transferred to you when you pay all the installments.

Advantages of hire purchase

Spread out the purchase cost: The number one reason to choose hire purchase is that you will spread out the cost of buying the assets that you require. You do not have to pay one big lump sum for the smart TV, furniture, or kitchen appliances. This is convenient especially if you are paid monthly as you can easily plan for the payment.

Get the item once you sign the agreement: In a case where one wants to purchase items on cash terms, they might need to save several months before ever acquiring the asset. On the other hand, when you choose to hire purchase, after paying the deposit and signing the agreement, you will have the right to use your asset. You do not have to wait until you have saved enough.

Get full ownership after the last installment: In the case of lease agreements, one only pays installments, but they never get the ownership of the asset. On the other hand, a hire purchase functions like a rent-to-own agreement. You will be using your smartphone, subwoofer, or even kitchen cooking gas while paying the installment. After the last installment, you will have the ownership transferred from the seller. This is a better alternative to leasing items.



What is hire purchase?


Hire purchase is one of the payments methods available in the modern Kenyan market. If you are looking to purchase appliances, furniture, electronics, and other expensive assets for your home, the price might be a bit high. This means that one might be unable to purchase such products and pay all the required cash at once. Hire purchase allows you to pay a fraction of the total amount initially, known as a deposit or down payment. You will pay the remaining balance within a set duration, and in various installments. The deposit is paid initially when the product you require is delivered.

How Does A Hire Purchase Agreement Contract/Agreement Work?

If you opt to purchase a certain asset for your home using a hire purchase agreement, you will be required to pay the deposit but not the whole price. After paying your deposit, you will have the right to use the asset. However, the ownership of the asset remains with the seller. After one pays the down payment, one will need to pay the set installments with interest. The terms and conditions relating to the period of repayment are decided before one signs the agreement. The ownership of the appliance, furniture, or electronics will only be transferred when one completes paying the installments. This means that the asset can be repossessed by the seller if the buyer fails to pay the installments.

Types Of Hire Purchase

Hire purchase is usually divided into two categories

  • Industrial hire purchase: In this case, the assets are purchased by a company or a business. This usually involves purchasing high-end machinery.
  • Consumer high purchase: Kenya Credit Traders Limited specializes in this type of high purchase. It usually involves a consumer purchasing personal assets to furnish their home. Whether you need furniture, electronics, kitchen appliances, or other essential assets, this is the ideal payment method.

Visit our site to view products available on hire purchase terms.


It is no secret that Kenyans are looking for convenient ways of buying items for their homes and offices. However, most shoppers find a challenge in paying for the items they so desperately need. Some do not even know what hire purchase in Kenya entails. If you are one of them, it is time to open your eyes and see the huge convenience that is staring at you. Read on to understand what hire purchase covers and what it doesn’t. You will also, separate common myths from realities and then benefit from the advantages.

Quick Introduction
Hire purchase in Kenya can loosely be defined as a system of buying goods and products from dealers and traders through regular instalments. In most cases, those instalments are equal and are paid monthly. If you are buying a television set, for example, you spread the purchase over several months instead of paying the whole price upfront. If it goes for Ksh. 50,000 for example, you could enter into a hire purchase agreement and pay five instalments of Ksh.10,000 each.

What Items can you Buy?
You can find numerous traders who offer hire purchase as a payment option. However, it is best to shop with a trusted trader such as Kenya Credit Traders Limited. Avoid the temptation of going for offers that look too good to be true. It is important for you as a consumer to note that you can purchase just any item through this system. The following are examples of popular items for hire purchase in Kenya that you can purchase at Kenya Credit Traders Limited.

  • Home Entertainment
  • Household Furniture
  • Transport i.e Bicycles
  • Solar Products
  • Building Materials
  • Dairy & Agricultural Equipment
  • Light Commercial Equipment
  • Kitchen improvement products

Common Terms and Conditions

The terms and conditions of hire purchase in Kenya vary from one trader to another. It is, therefore, prudent to understand the terms at each trader. The last thing you want is to be fleeced of your hard-earned cash in the form of hidden costs and charges.All traders that offer hire purchase in Kenya will require you to make a down payment before you take the item home. This amount varies from one trader to another. Some request for a 50% payment, but others are more flexible. After that, read and sign an agreement that binds both you and the trader, and then take the item away. Usually, the ownership of the item is not expressly transferred to you until you pay all due instalments.

Tips on Hire Purchase

As the item still belongs to the trader during the payment duration, ensure you do not deface it. Tampering with the operation, look or functioning of the item voids the hire purchase agreement.Note that the overall price of the item in the hire purchase agreement is usually a bit higher than the marked price. The extra cost is the trader’s profit. Regardless of this, hire purchase in Kenya remains as one of the most preferred ways of shopping. Head over to Kenya Credit Traders Limited and go home with an item you desperately need.

There are many hire purchase companies and traders in Kenya. However, few are as credible and as convenient as Kenya Credit Traders. If you want to buy an electronic product or an item of furniture, you have come to the right place. It is important to understand the pros and cons before entering into any contract. Read on to know common features and terms of hire purchase in Kenya. After comprehending the technical details, you will have no reason for failing to own life’s best possessions.

1. Possession
Possession refers to the rightful owner of the item being purchased. Hire purchase facilitates you to use the item even before paying its entire price. However, the product belongs to Kenya Credit Traders even when it is in your house. Make the final payment and the company will transfer ownership to you immediately.

2. Installments

It is usually the trader’s discretion to determine the amount and duration of instalments.However, traders such as Kenya Credit Traders are flexible and can listen to your needs. Talk to a customer representative today and have the contract tailored to suit your interests. If the duration of hire purchase is long, the instalments will be smaller. The opposite is true for shorter durations.

3. Down payment

Just as the term suggests, a down payment is an amount of money that a buyer pays at the beginning of the hire purchase agreement. For example, Kenya Credit Traders can request you to pay Ksh. 50,000 for a machine that costs Ksh. 150,000. You will then spread the Ksh. 100,000 over several months depending on your needs and source of income.

4. Constituents of hire purchase instalments

Note that each instalment that you pay for the item consists of a finance charge (otherwise referred to as interest) and a capital payment. That means you will pay a higher overall cost of the item as compared to someone paying the entire marked price of the same item at the same shop.

5. Ownership

You do not expressly own the products just because you have paid a down payment to Kenya Credit Traders. Instead, the ownership of items or goods will be passed to you (also referred to as a hire purchaser) when you pay the last instalment. Some agreements contain additional features especially for high-end products such as heavy machinery.

6. Re-possession

You are encouraged to honour the provisions of the hire purchase agreement. For example, pay your instalments promptly. Failure to pay up or a deliberate delay in payment may void the whole contract.Defaulting payment can lead to the hire vendor exercising his right to take the goods back without making any compensation. You will have little if any grounds to mitigate and obtain ownership of the item again.


As you can see, the provision of hire purchase is not as strict as most people think. What are you waiting for? Visit any Kenya Credit Traders shop near you and start the process of owning your most prized possessions.