There is no doubt that the Kenyan economy is not at its highest at the moment. There are a variety of factors that have contributed to the economic downturn. One such factor is the Covid-19 pandemic. Almost three years after the first Covid-19 case was reported in the country, the country continues to feel the effect of the pandemic. While normalcy has returned in almost all sectors, not every business or individual has recovered from the economic disruption caused by the pandemic.
The past general election is also part of the factors that have contributed to the economic downturn in the country. Elections are always hotly contested in this country, and in most cases, cases of political instability follow the conclusion of the general elections. Weekly riots and protests have affected businesses and lowered productivity, thus contributing to an economic downturn.
The Effects of Economic Downturn in Kenya
Almost every sector suffers when the country experiences an economic downturn. This in turn affects the livelihoods of the Kenyans. Cases of high taxation, as the country looks to turn the economy around, means that the citizens end up with less cash in their pockets. Inflation also means that you can only acquire a few assets with the little savings you are able to make. This means that there is a need to find a way to get around the negative impact of the economic downturn.
Benefits Of Hire Purchase in Economic Downturn
Hire purchase is one of the best ways to get around the results of an economic downturn. With hire purchase agreements, shoppers have a chance to acquire assets with a fraction of the total cost. The balance after one makes a down payment is divided into daily, weekly, or monthly installments. You do not require waiting until you make enough savings to acquire a particular asset that you intend to purchase.
Another reason to consider hire purchase in the current Kenyan economy is that it comes with fixed interest rates. Inflation is one of the effects of an economic collapse. This at times leads to readjustment of interest rates for term loans. If you opt to acquire a loan to purchase a given asset, if the interest rates are adjusted, you end up paying more than you initially planned to. Hire purchase interest rates even in the economic downturn are fixed. This means that one can plan their payments ahead depending on their income.