Most people looking for hire purchase options do not really know the provisions of such agreements. They either make mistakes or fail to capitalise on some very important benefits. Perhaps the most common arrangements are check-off arrangement and straight hire purchase.While both systems have their own advantages and benefits, this article focuses on a check-off system. Read on to understand the benefits and then take advantage of them today. An educated shopper is an intelligent buyer.

Introduction to Check-off Arrangement

Just as the name suggests, this is a hire purchase option that has your paycheck linked to it. In simple terms, installments for the bought item are deducted from your salary. All you need to do is to discuss with your employer and vendor and make a prudent decision. For example, know exactly how much money will be deducted from your salary per month.Traders are known to be mischievous and you do not want to fall into their trap. Once you provide them with a payslip, your identification card and a guarantor, you are ready to purchase.

Affordability and Convenience

A check-off arrangement is perhaps one of the most convenient ways of paying for hire purchase items. As long as you are salaried or you have a stable source of income, you qualify for this arrangement.You will not have to physically go to the shop to pay installment. Instead, your employer or bank will channel the funds to the vendor’s account conveniently. Trusted vendors such as Kenya Credit Traders Limited can facilitate statements so that you know the status of your payment.

Gives Peace of Mind

The fact that you have a salary at the end of each month is great. In addition, buying items straight from your salary offers some peace of mind. In fact, you will work hard at work knowing that loss of employment will mean loss of the goods or items bought under hire purchase.

You have a Guarantor

A guarantor is someone or some organisation that underwrites your ability to pay for the goods needed. These are usually people close to you such as family members, work colleagues and employers. Knowing that you have someone to go to when finances are hard to come by is a welcome relief. However, do not misuse this sense of security to your advantage and at the expense of the guarantor. If you default payments, both of you will lose assets anyway.

Flexible Purchase and Delivery

This advantage does not only apply to a check-off arrangement, but also to other hire purchase options. Anyway we decided to include it here because of the weight that it carries. In addition, leading franchise such as Kenya Credit Traders Limited allows you to pay for an item at one shop and then pick it up at another shop. Having understood the benefits and advantages of the check-off system, is it not the time to start buying items that you need?

Are you looking for the best hire purchase company or trader in Kenya? Search no more, because Kenya Credit Traders Limited has already made your life easy. Read on to understand how to settle for the best vendor.It is true that some hire purchase traders in Kenya have fleeced innocent shoppers. For this reason, we educate you on the process of finding the best hire-purchase trader. When you have found one, you know that your money will go into a fruitful venture.

Research Widely

One of the biggest mistakes that you can make with hire purchase traders is a failure to research. You are highly encouraged to do a thorough homework. The last thing you want is to purchase faulty goods or highly-priced items from a blacklisted vendor.Ask your friends, family members and colleagues for the best hire-purchase
trader in Kenya. If the name Kenya Credit Traders Limited pops up several times, you know that it is a trusted company. Go ahead and do business with them.

Visit the Vendor’s Website

From the comfort of your home or office, browse different items listed on the vendor’s website or social media platforms. However, do not rely on this as the only way to collect information. Note that some traders take pictures of items and then edit them in Photoshop to make the item look newer and glossier hence making it pricier.
People who have used hire purchase in Kenya will tell you its benefits and drawbacks if any.More importantly, visiting the actual brick and mortar shop allows you to have the feel of the item before you take it away.

Go to the Actual Shop

Here is another mistake that people commonly make when buying from a hire purchaser. They rely on the information posted on websites and social media pages too much. Instead, visit the actual shop and chat with the customer representative. Ask as many questions as possible. Do not be in a hurry to buy from the first shop that you visit. Leave your contact details if the vendor asks and head to another shop. If you must, write down the various prices of the goods sold at various shops and then compare them. Be sure to note any varying specifications or features in different items.

Inspect the Ownership and Registration

You will have nobody to blame if the vendor fails to observe the stipulations of your hire purchase agreement. To avoid doing business with conmen, inspect the business licences as well as registration documents. When you visit any shop belonging to Kenya Credit Traders Limited, you will have access to all regulatory permits needed. That is how you know your purchase agreement is in safe hands. Ensure that the company is mandated by the relevant authority to transact hire purchase business.

Warranty and Insurance

Is the product you are buying covered by a warranty? Just like any other mode of payment, hire purchase should provide a generous yet comprehensive guarantee and insurance for items bought. To make the most use of hire purchase options, visit Kenya Credit Traders Limited today.

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.

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.

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