[2000] KEHC 404 (KLR)
The court found that the contract between the parties granted the plaintiff discretion to vary the interest rate on the loan advanced to the defendant, with the applicable rate to be determined by market forces as reflected in the schedule produced in evidence. The court accepted the plaintiff's evidence, including...
Source-derived case information.
- Citation
- [2000] KEHC 404 (KLR)
- Parties
- Plaintiff: Kenya Commercial Bank Ltd; Defendant: Stephen Kipkeriring Sugut
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 507 of 1998
- Procedural Posture
- Civil Case / Post Judgment Ruling on Interest
- Outcome
- Application on interest allowed; interest rate to be as per plaintiff's schedule.
- Legal Topics
- Loan Interest Rates, Contractual Discretion, Variation of Terms
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Commercial Bank Ltd
Plaintiff
Stephen Kipkeriring Sugut
Defendant
Procedural Posture
Civil Case / Post Judgment Ruling on Interest
Legal Issues
- 1 What is the applicable rate of interest chargeable on the loan advanced by the plaintiff to the defendant under the contract?
- 2 Does the plaintiff have contractual discretion to vary the interest rate based on market forces?
Ratio Decidendi
The court found that the contract between the parties granted the plaintiff discretion to vary the interest rate on the loan advanced to the defendant, with the applicable rate to be determined by market forces as reflected in the schedule produced in evidence. The court accepted the plaintiff's evidence, including the schedule marked as exhibit 6, as proof of the applicable interest rates. Accordingly, the court ordered that the interest rate chargeable on the loan be as reflected in the schedule provided in court.
Court Disposition
Application on interest allowed; interest rate to be as per plaintiff's schedule.
Orders
- The rate of interest chargeable on the loan advanced by the plaintiff to the defendant shall be as reflected in the schedule provided in court and marked as exhibit 6.
Full Case Text
Judgment text and source record
10 paragraphs
REPUBLIC OF KENYA
Kenya Commercial Bank Ltd v Stephen Kipkeriring Sugut
High Court Of Kenya At Nairobi November 30, 2000
Milimani Commercial Courts
T Mbaluto, Judge
Civil Case No 507 Of 1998
November 30, 2000 T Mbaluto, Judge delivered the following ruling.
November 30, 2000 T Mbaluto, Judge delivered the following ruling. Judgement has already been entered in this matter against the defendant and the only outstanding matter in the suit relates to interest.
According to the evidence tendered by the plaintiffs witness, interest chargeable on the loan advanced by the plaintiff to the defendant is between 36% and 54% depending on market forces. That evidence is supported by a schedule which the witness produced in the course of his testimony. Under the contract between the parties the plaintiff has the discretion to vary the rate of interest chargeable on the loan.
In view of the evidence tendered in this matter on behalf of the plaintiff, it is ordered that the rate of interest chargeable on the loan advanced by the plaintiff to the defendant be as reflected in the schedule provided in court and marked as exhibit 6.