[1998] KEHC 201 (KLR)
The court held that, in the absence of any evidence or material indicating that the agreed interest was to be compounded, it would be unjust to interfere with the consent order specifying simple interest at 27% per annum. The consent order, as recorded by both parties' counsel, was clear and binding, and there was...
Source-derived case information.
- Citation
- [1998] KEHC 201 (KLR)
- Parties
- Plaintiff: Tito Kinyambu; Defendant: Kamsons Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Law Courts)
- Jurisdiction
- Kenya
- Case Number
- ? 3312 of 1990
- Procedural Posture
- Civil Case / Ruling on Application to Compound Interest
- Outcome
- Application to compound interest dismissed; interest to be paid at 27% per annum as per consent order.
- Judges
- A Mbogholi-Msagha
- Legal Topics
- Interest Awards, Consent Orders, Review of Judgment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Tito Kinyambu
Plaintiff
Kamsons Limited
Defendant
Procedural Posture
Civil Case / Ruling on Application to Compound Interest
Legal Issues
- 1 Whether the court should order that the interest awarded in the judgment be compounded.
- 2 Whether the consent order on interest rate can be varied in the absence of evidence on compounding.
Ratio Decidendi
The court held that, in the absence of any evidence or material indicating that the agreed interest was to be compounded, it would be unjust to interfere with the consent order specifying simple interest at 27% per annum. The consent order, as recorded by both parties' counsel, was clear and binding, and there was no basis to alter its terms to provide for compounding. The application to compound the interest was therefore declined, and the interest was to be calculated as agreed in the consent order.
Court Disposition
Application to compound interest dismissed; interest to be paid at 27% per annum as per consent order.
Orders
- Interest on the sum of Kshs. 65,000 shall be 27% per annum from the date the loan was obtained until payment in full.
- No order as to costs.
Full Case Text
Judgment text and source record
13 paragraphs
REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI CIVIL CASE NO. 3312 OF 1990
TITO KINYAMBU.........................................................PLAINTIFF VERSUS KAMSONS LIMITED.....................................................DEFENDANT
R U L I N G
This is an application by way of chamber summons under section 3A of the Civil Procedure Act for an order that the rate of interest awarded in the judgment for the sum of Kshs 65,000/- be compounded.
There is on record an application dated 18th and filed on 26th July, 1996 by the plaintiff where a review of the judgment was sought so that the interest should be at the same rate as that charged by Kenya Industrial Estates Ltd on the loan granted to the plaintiff, that is 27% per annum. On 13th November, 1996 both learned counsel recorded a consent order in the following terms.
“By consent interest on the sum of Kshs. 65,000 shall be 27% from the date the loan was obtained......”
There is no indication in the material before me to guide the court n whether or not the said interest was compounded yearly. In the absence of any such guidance, it will lead to a miscarriage of justice to interfere with the consent order aforesaid.
Accordingly the rate of interest shall be as agreed, that is, 27% per annum on the sum of Kshs. 65,000 from the date the loan was obtained until payment in full.
No order as to costs.
Order accordingly.
Dated and delivered at Nairobi this 10th day of August, 1998
A. MBOGHOLI MSAGHA
JUDGE