A hire purchase company that once stood as a lifeline for thousands of teachers is closing its business. Kenya Credit Traders (KCT), a household name in the 1990s and early 2000s has announced the closure of its business operations effective October 31, 2025.
This will mark the end of more than three decades of service.
At its peak, KCT was a trusted partner of the Teachers Service Commission (TSC), providing household goods, electronics, and furniture to teachers nationwide through a convenient hire-purchase scheme.
Teachers would acquire items and repay through a check-off system, a model that earned the firm immense goodwill in an era when access to consumer credit was limited.
In an internal memo dated October 29, 2025, the company’s General Manager announced with regret that “the Company cannot sustain its operations anymore and subsequently is abruptly closing down with effect from 31st October 2025 after more than thirty years of existence.”
The memo cited persistent financial struggles stemming from low sales, harsh economic conditions, and mounting losses.
“We have struggled for a long time to remain in business as a result of poor sales and harsh economic times,” the statement read, adding that despite resilience and restructuring attempts, “prospects do not look bright.”
Employees have been directed to wind up operations and return customer items from workshops before the final closure.
“Please contact customers immediately you receive this memo to come for their articles, whether the item has been sent to the workshop or not,” the document instructed, reflecting a rapid and emotional winding down of what was once a thriving enterprise.
For staff, the closure carries financial and emotional weight. The company has outlined a compensation plan for retirees and those nearing retirement, including payments in lieu of leave, notice, and ex gratia benefits.
“A very sad moment indeed for all of us,” the memo concluded, capturing the sentiment of finality shared by both management and long-serving employees.
Background
KCT was established in the late 1980s as a pioneering hire-purchase and consumer credit company that transformed household access to durable goods among middle- and lower-income earners.
The firm gained national recognition in the 1990s when it entered into a formal check-off partnership with the TSC, allowing thousands of teachers to acquire home appliances, furniture, and electronics on credit and repay in small, manageable monthly deductions from their salaries.
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This innovative credit model made KCT a household name, particularly among civil servants and salaried workers who previously lacked access to banking loans or flexible financing options.
At its peak in the early 2000s, KCT operated branches in nearly all major towns in Kenya, including Nairobi, Kisumu, Nakuru, Eldoret, Nyeri, and Mombasa.
Its showrooms were filled with trusted brands—cookers,televisions, radios, and sofa sets—that became symbols of progress and dignity for thousands of Kenyan families.
The company’s motto, emphasising affordability and reliability, resonated deeply with teachers and low- to middle-income earners who saw KCT as a pathway to improving their living standards.
The check-off system helped keep default rates low, giving KCT a competitive edge over emerging microfinance institutions and informal traders.
By Joseph Mambili
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