Zenka Digital Ltd v Tarus (Commercial Case E1462 of 2026) [2026] SCC 173 (KLR) (13 May 2026) (Judgment)

Zenka Digital Ltd v Tarus (Commercial Case E1462 of 2026) [2026] SCC 173 (KLR) (13 May 2026) (Judgment) Neutral citation: [2026] SCC 173 (KLR) Republic of Kenya In the Milimani Small Claims Court Commercial Case E1462 of 2026 M Cherotich, RM May 13, 2026 Between Zenka Digital Limited Claimant and Salome Tarus Respondent Judgment Introduction 1.The Claimant instituted this suit vide a Claim dated 28th January 2026 seeking the following reliefs:a)Judgment in the sum of Kshs. 163,300/=,b)costs of the claim; andc)interest at court rates from the date of filing until payment in full. 2.The Respondent filed an amended response dated 6th April 2026, opposing the claim. 3.The matter proceeded by way of Section 30 of the Small Claims Court Act. Claimant’s Case 4.The Claimant avers that on 5th August 2024, vide the Claimant’s mobile loan application, the Respondent borrowed and was advanced Kshs. 78,000/= by the Claimant. The Respondent was required to repay the loan within a month at an interest rate of 26%, arriving at a total of Kshs. 98,281/=. The loan facility was governed by the loan agreement entered into between the parties. It was a fundamental term of the said agreement, pursuant to Clause 8.3, that in default of payment, the outstanding loan amount would attract a daily interest at the rate of 1.5% of the loan amount until payment in full. The Respondent breached the terms of the agreement by failing to repay the loan as agreed, and consequently, the sum of Kshs. 156,000/= remains outstanding to date. Respondent’s Case 4.The Respondent contends that she partly admits to the contents of paragraph 4 of the Statement of Claim and the entire Witness Statement of Ann Nkatha Muriuki and avers that the she borrowed a sum of Kshs. 78,000/= from the Claimant on 5th August 2024, which amount was to be repaid with interest within one month of disbursement. The Respondent further avers that on 13th August 2024, she borrowed an additional amount of Kshs. 46,800/=, bringing the total loan amount to Kshs. 124,800/=, which as to be repaid within one month, specifically on or before 4th September 2024. 5.The Respondent avers that on 4th September 2024, in accordance with the agreement made on 5th August 2024, she repaid the entire loan amount in the sum of Kshs. 150, 387/= being the principal amount and the interest. The Respondent further avers that she fulfilled her contractual obligations under the agreement and does not owe the Claimant any monies, having fully repaid the loan plus interest as per the terms of the agreement and within the agreed period, being one month. The Respondent therefore prays that the claim be dismissed with costs. Issues for Determination 8.I have considered the pleadings, submissions and the authorities attached thereto. The following are the issues for determination:a.Whether there was a breach of contract by the Respondent; andb.Whether the Claimant is entitled to the reliefs sought. Analysis and Determination Whether there was a Breach of Contract by the Respondent 9.Both parties in their respective submissions acknowledge the existence of an agreement dated 5th August 2024. In the circumstances, the Court is spared from delving into the issue of whether there existed a contract between the parties herein since the same is not in dispute. 10.The Claimant averred that the Respondent breached the contract by failing to repay the principal sum of Kshs. 78,000/= plus interest within the stipulated period of 30 days. The Claimant further contended that the outstanding amount continued to accrue interest, increasing the outstanding balance to Kshs. 156,000/=. In support of the claim, the claimant filed a loan agreement, Mpesa disbursement messages and a demand letter. 11.The Respondent, on the other hand, denied breaching the terms of the said agreement, contending that she fully repaid the loan on 4th September 2024, being the date agreed upon by the parties. In support of her case, the Respondent filed Mpesa statements evidencing various repayments made to the Claimant. 12.From the evidence on record, the Court is satisfied that the Respondent repaid the loan on the agreed date under the agreement. This is evidenced by the Mpesa statements, which indeed reflect that several payments were made by the Respondent to the Claimant on 4th September 2024, through Pay Bill number 979988 of Kshs. 4,387/=, Kshs. 88,000/= and Kshs. 55,000/=. 13.Consequently, the interest contemplated under Clause 8.3 of the agreement did not crystallize, as the same would only arise upon default or breach of the repayment terms. Further, the Court is of the considered view that allowing the Claimant to recover amounts, and in the face of evidence demonstrating repayment by the Respondent, would amount to unjust enrichment. 14.The Court therefore finds that the Respondent did not breach the contract as she complied with the repayment obligations under the agreement. b. Whether the Claimant is Entitled to the Reliefs Sought 15.Having found that the Respondent did not breach the contract, the Claimant is not entitled to the reliefs sought. Disposition 16.The upshot of the foregoing, I make the following orders: -a.The Claim is dismissed with costs of Kshs. 15,000/= to the Respondent.b.Right of appeal be exercised within 30 days.c.Let the file be closed forthwith. 17.Orders accordingly. DATED, SIGNED AND DELIVERED VIRTUALLY AT MILIMANI SMALL CLAIMS COURT THIS 13th DAY OF MAY 2026.CHEROTICH MARYLEENADJUDICATOR/ RESIDENT MAGISTRATEJudgment delivered in the presence of:Ms. Wangusi for the Claimant.Mr. Murgor for the Respondent.