Down Payment

An initial upfront payment made when entering a lease or purchase agreement. A larger down payment reduces your monthly payments and total interest paid. Example: A matatu operator puts down KES 150,000 on a KES 1,500,000 minibus lease. This 10% down payment reduces his monthly instalments from KES 45,000 to KES 38,000 and saves him KES 84,000 in total interest.