Kenya Case Law

Tanzania National Roads Agency v Kundan Singh Construction Ltd (In Receivership) & another

Tanzania National Roads Agency v Kundan Singh Construction Ltd (In Receivership) & another [2025] KEHC 10555 (KLR)

Court

High Court

Case number

Civil Suit 8 of 2010

Judge

G Mutai

The court held that it was not functus officio in respect of determining the commercial rate of interest for execution of the decree, as this issue pertained to the execution, discharge, or satisfaction of the judgment and thus fell within the court's jurisdiction under Section 34 of the Civil Procedure Act. The court accepted the objective evidence provided by certified public accountants, based on Central Bank of Kenya rates, to fix the applicable commercial interest rates for each year from 2010 to 2024. However, the court declined to grant leave for execution before taxation of costs, fin…

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• Execution Of Decrees
• Interest Rates
• Functus Officio
• Taxation Of Costs

Mutea v Kiringa

Mutea v Kiringa [2025] KECPT 371 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 58 of 2020

Judges

Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol

The Tribunal found that the applicant was properly served with all relevant pleadings, summons, and notices at her last known address, and that she failed to enter appearance or file a defence despite multiple opportunities. The Tribunal was not persuaded that the default judgment was irregular or that the applicant had raised any triable issues regarding the loan or the accrued amount, as she admitted to taking the loan and defaulting. The Tribunal exercised its discretion to review the interest rate awarded in the judgment, reducing it from 24% per annum to the Tribunal rate of 12% per annu…

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• Setting Aside Default Judgment
• Service Of Process
• Loan Default
• Interest Rates

Rafiki Microfinance Kenya Limited v Conier Limited & 2 others

Rafiki Microfinance Kenya Limited v Conier Limited & 2 others [2025] KEHC 6299 (KLR)

Court

High Court

Case number

Civil Suit E003 of 2021

Judge

LN Mutende

The court found that the Plaintiff advanced a loan to the 1st Defendant, which was subsequently restructured and secured by a charge over property. The Defendants, having executed the relevant agreements and guarantees, were bound by the contractual terms, including the stipulated interest rates. The Defendants did not present any evidence to challenge the Plaintiff's claim or to prove coercion, fraud, or undue influence. The court held that the contract was valid and enforceable, and the Plaintiff was entitled to recover the outstanding sum, interest, and costs. The Defendants' arguments reg…

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• Loan Default
• Contract Enforcement
• Secured Transactions
• Interest Rates

Orient Savings & Credit Society Limited v Ngogi

Orient Savings & Credit Society Limited v Ngogi [2025] KECPT 95 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 29 of 2021

Judges

Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol

The Cooperative Tribunal held that loan repayment survived termination of employment and entered judgment for the claimant for the reconciled balance plus interest and costs.

• Loan Default
• Employment Termination
• Contractual Obligations
• Interest Rates
• Loan-default
• Contractual-obligations

Githaiga v Mwangi

Githaiga v Mwangi [2024] KEHC 13449 (KLR)

Court

High Court

Case number

Civil Appeal E064 of 2022

Judge

DKN Magare

The High Court allowed a first appeal, holding that the respondent failed to prove a Kshs. 470,000 loan claim because no evidence was tendered and submissions are not evidence.

• Burden Of Proof
• Loan Disputes
• Admissibility Of Evidence
• Interest Rates
• Pleadings And Proof
• Costs Award

Kubai v Ochwangi

Kubai v Ochwangi [2023] KEHC 27254 (KLR)

Court

High Court

Case number

Civil Suit E018 of 2020

Judge

DKN Magare

The court found that while some loan agreements were executed and the Defendant acknowledged a debt, the Plaintiff failed to strictly prove the claimed sum of Kshs. 20,330,682.75 or provide a clear breakdown of how it was arrived at. The court held that the interest rate of 20% per month was excessive and unconscionable, warranting judicial interference. The Defendant's allegations of economic duress and unconscionability were unsupported by evidence of inequality of bargaining power or illegitimate pressure. Unsigned agreements could not be relied upon, and the Plaintiff's evidence was incon…

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• Loan Agreements
• Unconscionable Contracts
• Burden Of Proof
• Interest Rates
• Pleadings
• Contract Enforcement

Swift Capital Limited v Chandi

Swift Capital Limited v Chandi [2023] KEHC 22502 (KLR)

Court

High Court

Case number

Appeal E179 of 2022

Judge

FG Mugambi

The High Court upheld the Small Claims Court’s reduction of a loan claim, finding the 5% weekly penalty interest excessive and unconscionable.

• Loan Agreements
• Unconscionable Contracts
• Interest Rates
• Contract Enforcement
• Loan-agreements
• Unconscionable-contracts

Jelangant & another v Mwananchi Credit Limited & another

Jelangant & another v Mwananchi Credit Limited & another [2023] KEHC 19922 (KLR)

Court

High Court

Case number

Civil Case 374 of 2018

Judge

A Mabeya

The court held that the in duplum rule, though codified in the Banking Act, is a principle of public interest that applies to all lenders, including non-bank financial institutions and private lenders. The purpose of the rule is to protect borrowers from exploitation and prevent lenders from recovering interest exceeding the principal amount. The court found that the 10% per month interest rate, when allowed to accumulate beyond the principal, contravened the in duplum rule. Furthermore, the penalty charges were unenforceable due to lack of clarity in the contract regarding their computation.…

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• Loan Agreements
• In Duplum Rule
• Unconscionable Contracts
• Interest Rates
• Equity Of Redemption

Evangelical Lutheran Church in Kenya Registered Trustees v First Capital Kenya Limited

Evangelical Lutheran Church in Kenya Registered Trustees v First Capital Kenya Limited [2022] KEHC 12046 (KLR)

Court

High Court

Case number

Civil Suit 416 of 2018

Judge

A Mabeya

The court found that the loan agreement expressly provided for interest at 18% per month for three months, and that the plaintiff was bound by this term. However, the defendant, as a non-bank lender, was not strictly subject to the Banking Act, but the court held that the in duplum rule, being a matter of public interest, should apply to all lenders to prevent exploitation of borrowers. The defendant's varying and excessive demands were found to be unjustified and amounted to a clog on the plaintiff's equity of redemption. The court applied the in duplum rule, limiting the maximum recoverable…

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• Loan Agreements
• Interest Rates
• In Duplum Rule
• Statutory Power Of Sale
• Equity Of Redemption

Canva Trading Kenya Ltd Mombasa v Masita

Canva Trading Kenya Ltd Mombasa v Masita [2022] KEMSET 747 (KLR)

Court

Micro and Small Enterprises Tribunal

Case number

Tribunal Case 28 of 2021

Judges

J.Bett, R.Katina, J.Were, A Gikuya, A Kibet

The Tribunal held the respondent liable on a loan claim, applied the in duplum rule to cap recovery at Ksh 78,000, and awarded Ksh 10,000 costs.

• Loan Recovery
• Interest Rates
• In Duplum Rule
• Contract Enforcement
• Loan-recovery
• Interest-rates