Naivas Supermarkets has rolled out a credit purchasing program dubbed Lipabaadaye that will enable customers to acquire household goods and pay for them in installments over a period of one year.
The installments can be made on a daily or monthly basis with the program allowing for credit between Ksh. 10,000 and Ksh. 500,000 per customer.
Speaking during the formal launch of the program Naivas Chief Commercial Officer Willy Kimani said that the program is being facilitated through its partnership with Aspira, which handles the credit financing.
“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. 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,” Mr. Kimani explained.
He noted that the Naivas 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.
“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. We have structured the payments in a way that will give customers flexibility and ease of paying the daily and monthly installments while using the products at home,” said Mr. Kimani.
On his part, Aspira Managing Director Yoeal Haile said that the partnership will bring a significant change to the Kenyan retail market.
“We are honored and very excited to partner with Naivas as the largest retailer with more than 60 branches countrywide and we believe this program will allow Kenyans to plan their lives and finances responsibly. By giving them this offering, we allow them to pay for products they need without straining their pockets. We pride ourselves on being a responsible lender and not overextending borrowers which is common in the market,” commented Mr. Haile.
“We will also set credit limits for individuals based on their MPesa or bank statements,” Mr. Haile added noting that the key differentiating aspects of the service are its ease of application, ability to utilize the product upon approval of the transaction and flexible repayment plan customized to suite customer needs.