Retail chain Naivas Supermarkets has rolled out a credit purchasing program that enables its customers to acquire household goods and pay for them gradually over a period of one year in either daily or monthly installments.

Speaking during the formal launch of the credit system program dubbed Lipabaadaye at the Naivas Gateway branch on Mombasa Road, Naivas Chief Commercial Officer W***y Kimani said that the program is being facilitated through its partnership with Aspira, a product finance company.

“Our research together with that of Aspira, showed that Kenyans aspire to own good quality household goods, including electronics and furniture and need a service that gives them the flexibility to acquire and use the products while paying for them in small affordable amounts,” said Kimani.

“We settled on Aspira who have a strong technological platform that powers the whole process- from registration, verification to approval and eventual disbursement of the funds to Naivas,” explained Kimani.

The creditworthiness of a customer will be based on their M-Pesa activity and bank statements in what is expected to be a game-changer in the retail market. The program allows for credit between Kshs. 10,000 and 500,000 per customer

He noted that the credit purchasing program is unique because it allows the customers to carry away the goods they have purchased on credit immediately. This is unlike other programs that require the customer to fully pay for the goods before collecting them.

Tuskys has a similar initiative called Lipia Polepole but customers only take the goods home after paying for them in full.

According to Kimani, Lipabaadaye credit financing program will boost Kenyans’ capacity to acquire household goods at a time when retail consumption is experiencing a downturn and average basket values have reduced considerably

“Household goods have been slow movers for retailers across the board and services like Lipabaadaye offer customers a chance to pay slowly without breaking the bank.

He added that the service allows the two organisations to structure payments in a way that will give customers flexibility and ease of paying the daily and monthly installments while using the products at home.

Aspira Managing Director Yoeal Haile said that the partnership will also allow Kenyans to plan without stressing themselves financially.

“We are honored and very excited to partner with Naivas, a retailer with more than 60 branches countrywide. We are confident this program will be a hit with the market,” said Mr. Haile.

“We pride ourselves on being a responsible lender and not overextending borrowers which is common in the market,” added Mr. Haile.