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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.

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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Every buyer is keen to learn payment options available whenever they are in the market to purchase assets. Different items cost varying prices. For some items that don’t cost much, one will need to make an outright purchase. However, in some instances, you might not have all the money to purchase a particular item that you require. This is when one learns about other financing options such as hire purchase, leasing, or even taking a term loan.

What is a hire purchase?

When you do not have all the cash to purchase household or business assets, hire purchase is one of the best payment options to consider. In this payment option, one just pays an initial amount of the total cost, known as the deposit. The balance is cleared in regular installments. After paying the deposit, you can acquire the asset to use as you clear the balance. You get the assets such as refrigerators, household furniture, microwaves, fridge guard, and gas cookers among others on hire purchase at Kenya Credit Traders.

The difference between hire purchase and cash purchase

1.      Impact on your cash flow

When you are purchasing outright, you will be paying all the required amounts of cash at once. In the case of a business, this will have an effect on your cash flow. Even in the case of household items, one might use all their savings on furniture, smart TV, or even a smartphone. When you choose hire purchase, it is a chance to spread the cost over a period of time. This will help you properly plan for your cash.

2.      Ownership of the items

When one opts to purchase items outright, it will be the chance to own the item immediately. On the other hand, one immediately acquires the items after making the deposit. You have the chance to utilize the asset even before you acquire full ownership. However, one will only acquire ownership of the item after one makes the last payment.

3.      Total cost of the item

In the case of a cash purchase, one can expect the cost of the item to be lower than the total cost of the same time on hire purchase terms. The interest is spread across the payment duration.

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Hire purchase is the best financing option when purchasing items and you do not have all the cash upfront. Whether you are looking to enhance your home using the latest furniture sets, or you need a refrigerator for your business, hire purchase offers a good payment plan. In our other articles, we have highlighted the many benefits a buyer is set to enjoy if they opt to pay using hire purchase terms.

Considerations before signing any hire purchase agreement

It is essential to ensure that you are getting the best deal before you opt to sign a hire purchase agreement. Here are some vital aspects a buyer ought to keep in mind.

1.      Do you require the asset to thrive?

Before opting to purchase any assets using hire purchase, it is vital to consider the current ones. Do they need to be replaced? Can you get rid of the current items to raise some capital for the new ones? As a buyer, it is essential to only spend on items that you require. This helps you to avoid spending too much money on unnecessary items.

Hire purchase, or lipa mdogo mdogo, is essential for items that you need in the long run. When you have a new home, you might opt to purchase a 4-seater mahogany dinner set, metal beds, or various sofa sets here on hire purchase.

2.      Depreciation costs

Some of the assets that one can purchase on hire purchase depreciate over time. At the end of the agreement, some of the assets might no longer be useful or functional. Before spending on any item, it is vital to ensure that the depreciation cost is justifiable or even negligible in the long run.

3.      Interest rates

Interest rates are part of the basic considerations before investing in any items using a hire purchase payment plan. In most cases, the deposit that one ought to pay is capped at least 20-30%. Interest rates make the difference in the total cost of the items when compared to cash purchases. Comparing deals between different companies ensures that you can always find the better deal.

4.      Repayment terms

Apart from the interest rates, one also needs to consider the monthly installments before they sign any agreement. Late payments will mean that you incur penalties. On the other hand, lack of payment will see the seller repossess the items. You will end up losing the money you have fronted.

Visit our Blog page to learn more about hire purchases. Also, follow us on Facebook, Kenya Credit Traders to find the latest offers and deals.

Hire purchase, or lipa mdogo mdogo, is a popular method of payment in recent times. It is possible to acquire essential personal assets such as mobile phones, TVs, or tablets on hire purchase. You can also utilize this payment option for items that are considered expensive such as furniture, appliances such as double-door refrigerators, washing machines, microwaves, and commercial blenders. Leading hire purchase dealers in Kenya, Kenya Credit Traders, offer a variety of assets that you can acquire on hire purchase terms. Visit our website to find the best deals.

Hire purchase agreements

Hire purchase contracts are legally binding documents signed by both the hirer and the owner or the seller. The agreements usually indicate the obligations of both parties as well as their rights. In most cases, the hire purchase agreement also illustrates the penalties and consequences of not honoring the agreements. It is thus vital to ensure that you understand the contents of the hire purchase agreement before signing it. Here are some don’ts when signing a hire purchase agreement.

·         Don’t fail to take your time before signing the agreement

Regardless of the item that one opts to purchase on hire purchase, there are chances that it will cost them a considerable amount of cash. It is thus vital to ensure that you are making the right decision about your investment. Ensure that you take time to determine whether the item you want to purchase will be profitable to you. One also needs to learn their financing options before they settle for a high purchase.

·         Do not skim

Most people tend to quickly go over terms and conditions before they sign accept agreements. In the case of a higher purchase agreement, it is vital to thoroughly read through the terms and conditions to make sure that you are making the correct decision. This helps you to understand your rights and duties. One also learns of any penalties that they might incur as a result of contravening the agreement. Ensure that you understand the finer details in any hire purchase agreement before signing.

·         Do not ignore red flags

Scamming has become rampant in modern times. When reading through the hire purchase contract, ask for advice on areas that you do not understand. Check for any hidden fees or costs. This will help guarantee that you get the best deal.

Check more educative articles about hire purchases on our website. Also follow us on Facebook, Kenya Credit Traders.


When looking to add some assets to your home or business, you will want to find out the best deals. Apart from focusing on the quality of products and services, it is also vital to learn the payment options that are available. Some payment options that you can utilize include cash payments, loans, and hire purchases. Hire purchase is quickly gaining popularity in Kenya, in the form of Lipa mdogo mdogo.

What is a hire purchase?

Hire purchase is a payment option available for buyers that do not have all the cash to pay for particular items upfront. Some essential assets that we use in our homes such as gas cookers, dining sets, mahogany beds, refrigerators, and TVs might be costly. However, one doesn’t have to wait until they save all the cash before they make a purchase. Hire purchase allows you to buy such items by paying just a fraction of the total cost. One can clear the balance in the form of monthly installments.

Principles guiding hire purchase

  1. In any given hire purchase agreement, the owner, or the seller, hires goods to the hirer with an option to buy when they pay a given amount of cash.
  2. In hire purchase, the buyers that do not have all the cash to buy a given asset have the chance to acquire the items after paying an initial amount. This down payment is known as a premium. After making this payment, you will acquire the assets for use. The balance is cleared in the form of monthly payments.
  3. After one pays all the monthly payments, they acquire full ownership of the assets. During the period when one is still making payments, the items belong to the seller. However, you acquire the title after you make the last payment.
  4. The seller has the right to repossess the items in a case where the buyer doesn’t honor the agreement. If this is a result of one not paying the installments, they end up losing even the cash they have paid upfront. Before you sign the hire purchase agreement, take your time and understand the terms and conditions. This helps you understand the conditions under which the agreement can be terminated.

Visit our blog page and learn more about hire purchase agreements. We also have a variety of products available on hire purchase payment plans. Follow us on Facebook, Kenya Credit Traders for the latest deals.


Hire purchase is quickly becoming a popular payment for Kenyans. There are companies such as Kenya Credit Traders that sell their products on hire purchase terms. This enables potential buyers to acquire assets at a fraction of the total cost. Afterward, one pays the balance plus the interest in monthly installments, allowing them to fully own the items or assets. Check our website to find many items available on hire purchase.

When one purchases goods on hire purchase, they will need to sign a hire purchase agreement. This is a legally binding agreement, and this means that you can be sued when you breach it. It is thus vital to take time and go through the agreement before signing. It is advisable that one doesn’t skimp when it comes to these agreements. Here are some key elements of the hire purchase agreements

Duties of the owner (Seller)

  1. Notification of the total price: The owner has to notify the buyer of the total cost of the items. This will include the premium or the down payment, the installments, and the interest.
  2. Disclosure of defects: It is also the duty of the seller to disclose to the buyer any defects on the products they intend to purchase.
  3. Delivery of goods: The owner will also need to deliver products to the buyer. Kenya credit traders ship all the products to a branch near you after you place an order and sign the agreement.
  4. Compensation: The seller also has an obligation to compensate for any damages or defects on the products they are delivering.
  5. Register the hire purchase contract.

Rights of the owner

  1. Recovery of installments in arrears: The seller remains the rightful owner of the product until the buyer has paid the last installment.
  2. Sue in damages for breach: The seller has every right to sue the buyer if they breach the hire purchase agreement. This includes damages to the products by the buyer.
  3. Retention of the sum paid: After you make the down payment, the seller has the right to retain the sum as well as the installments. Even when the goods are repossessed due to a breach, they will retain the sum.
  4. Right to be notified about the change in location of the goods.
  5. Right to repossess the products: When the hirer breaches the agreement, and when the circumstances justify it, the owner can repossess the goods.

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A hire purchase agreement or contract is a credit agreement. The buyer hires items such as dining sets, double door refrigerators, and mobile phones, among others from credit dealers such as Kenya Credit Traders.

In most cases, such products might be expensive for one to pay upfront. Hire purchase thus offers them the chance to acquire the products by just paying a fraction of the total cost as a down payment. Afterward, one clears the balance in periodic installments. This can be in the form of daily, weekly, or monthly payments. Hire purchase, or Lipa mdogo mdogo, is slowly becoming a popular payment method.

Contents of the hire purchase agreements

  1. Most of the hire purchase contracts will have terms and definitions as used in the contract. This helps you understand the contents of the agreement before signing.
  2. The duties of both the seller and buyer are also specified in the hire purchase agreements. This includes the disclosure of crucial information by both parties.
  3. The rights of the seller and the buyer are also part of the hire purchase agreement. Both parties have their rights, and it is essential to understand them before you sign any hire purchase agreement.
  4. Payments and penalties are also part of the hire purchase agreement. The costs of the products as well as the interest charged ought to be part of the contract. One also learns penalties they incur as a result of breaching the contracts. This will include late payments or lack of payments.
  5. The exchange of notices information is included in the contract. Both parties will need to issue notices whenever they need to terminate the contract. It is also possible to issue a notice when one requires amending the contract. The mode of exchanging the notices is determined in the agreement.

Benefits of the hire purchase agreement

The primary purpose of the hire purchase agreements is to protect both parties. The buyer is protected from acquiring defective products. They are also protected from abrupt changes in the prices of the products. The seller is protected from losing their products. They are also protected from a lack of payments by the hirer. The steps that one can take whenever there is a breach of the agreement are specified in the hire purchase act.

Learn more about hire purchases by visiting our blog page. Also, follow Kenya Credit Traders on Facebook for great deals.

A hire purchase agreement is a legally binding contract between the buyer and the seller. Its primary purpose is to protect the seller as well as the buyer from exploitation. It is vital for both parties to take their time and understand the terms and conditions in the hire purchase agreements before signing. When you take your time to understand the details in the agreement, it is possible to find out any clauses allowing room for exploitation. The buyer also understands whether hire purchase is the right payment option to utilize.

Things to watch out for before signing a hire purchase agreement

  • It is essential to keep in mind that a hire purchase will cost more than the cash price for any given product. This is due to the interest as well as administrative costs that one incurs.
  • Always take your time to go through the hire purchase agreement. You should not sign any hire purchase agreement if you are not sure. Ask for a copy, take it home, and read. It is also advisable to seek advice. You can also compare the deal with other dealers.
  • When there is information missing on the contract, one might not have to pay all the cost of the credit. The law requires the seller to provide all the necessary information to the hirer.
  • Until you have made the last payment, you are not the owner of the products. This means that one cannot sell the products or even use them as security when borrowing. If you do, it will be a breach of the contract, and this can lead to the seller repossessing the goods.

Steps to take when cheated under a hire purchase agreement

The first step when one feels uncomfortable about the hire purchase agreement is to seek an audience with the seller. If the dispute can be settled between both parties, there will be no need for legal action.

One of the best ways to settle disputes that might arise from hire purchase agreements is to seek the services of a qualified lawyer. The lawyers will help you understand your rights. They can also help you draft a consumer complaint. Even in a case where one chooses to file a suit in a court of law, there is an arbitration clause. If arbitration doesn’t work for both parties, the case may be argued in a court of law.

Learn about hire purchase agreements at our website. We have numerous products available on hire purchase terms. Also follow us on Facebook, Kenya Credit Traders.


Hire purchase agreement

With hire purchase becoming a popular payment option in Kenya, one might be eager to learn about the hire purchase agreements. In the case of cash purchases, one will only take a receipt home and assume ownership of the product immediately after making the purchase. However, in the case of hire purchase, you are hiring a product to use until you make all the payments. This makes a hire purchase contract necessary to govern the owner of the product as well as the buyer.

Clauses under hire purchase agreements

1.      Nature of the agreement

This is the first clause in any hire purchase contract, and it states the purpose of the agreement. If you are purchasing household items such as TVs, microwaves, or dinner sets, the nature of the agreement will be for personal use. On the other hand, when purchasing items to utilize in your business such as commercial blenders, refrigerators, and other appliances, the nature of the agreement will be for commercial purposes.

It is in this clause that the dates for commencement and termination of the agreement are stated. Payment details are also indicated in this clause. It states how to make payments, when to pay, the name, as well as the address of the owner.

2.      Delivery of goods

It is the duty of the owner to deliver the products to the buyer in the case of hire purchase agreements. This clause defines the date, time, and place of delivery.

3.      Risk clause

This is the clause that defines any damages to the products, and who will bear the costs. If the products are damaged or defective before delivery, the owner bears the cost. On the other hand, after delivery, the hirer owes full responsibility for the damages.

4.      An explanation of the rights of both parties

This clause will explain the rights of the owner, including the rights to repossess products and termination of the contracts. One can understand circumstances under which the owner can repossess the goods.

The rights of the buyers will also be explained under this clause. This includes the right to get the necessary information, and the right to termination.

5.      Charges and total cost of the hire purchase agreement

In this part of the agreement, one learns the costs involved when purchasing a given product. This includes the down payment, interest, monthly installments, booking fees, maintenance, insurance, and other relevant charges. The owner has an obligation to disclose the fees to the buyer.

Visit our website for a variety of essential products available for hire purchase. Also find out the latest deals by following us on Facebook, Kenya Credit Traders.