Understanding Buy Now, Pay Later

Buy Now, Pay Later (BNPL) is a service that is becoming increasingly popular in Kenya. It allows you to purchase goods and services and make flexible payments in instalments over an agreed-upon period.

This service is widely used by fashion, travel, beauty and electronics retailers.

BNPL allows you to purchase what you need when you need it; you don’t have to dip into your everyday expenditure, especially when on a tight budget. What’s more, the loans are usually interest-free.

But this is not a new concept; hire purchase, a similar service, has existed since before independence, used mainly by civil servants, like teachers and police officers.

What differentiates Buy Now Pay Later from hire purchase is that the Central Bank of Kenya (CBK) regulates the former. With BNPL, you also wholly own the goods immediately on purchase.

According to the Business Daily, the Buy Now Pay Later market grew significantly by 16.7%, reaching USD 1.26 billion in 2024. Its gross merchandise value is expected to increase to USD 2.10 billion by 2029.

Watch the video below to learn whether you qualify for this service and how to apply for it.