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.