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• Lease charges are usually prohibitive i.e. the cost of finance is excessive.
• It may not be known to businessmen.
• Uncertainty as to returns from such assets i.e. the returns from such assets leased may not encourage the growth of lease finance.
• There is an imperfect market as a number of companies lease assets on basis of credibility of the lessee.
• Lack of flexibility i.e. a number of assets which are ideal for leasing are unavailable.
• Kenya’s financial markets are underdeveloped and this has affected the development of lease finance.
• After lease service is poor and this leads to loss of revenue.
Kavungya answered the question on March 11, 2019 at 13:42
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