Kenya Case Law

Simple Pay Capital Limited v Kioko & another

Simple Pay Capital Limited v Kioko & another [2025] KEHC 10206 (KLR)

Court

High Court

Case number

Commercial Suit E162 of 2023

Judge

BM Musyoki

The court found that the plaintiff was entitled to proceed directly against the guarantors without first pursuing the borrower, as the deeds of guarantee and indemnity did not require prior enforcement against the principal debtor. The court also held that the contracts between the plaintiff and the defendants did not contain an arbitration clause, so the plaintiff was not bound to refer the dispute to arbitration. Regarding interest, the court determined that the plaintiff failed to prove entitlement to 10% per month as claimed, since the agreement did not clearly incorporate the letter of o…

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• Loan Guarantees
• Enforcement Of Guarantee
• Interest Rate Disputes
• Contractual Liability

Aluanga v Mokaya

Aluanga v Mokaya [2025] KECPT 362 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case E941 of 2023

Judges

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

The tribunal found the claimant had not proved a guarantee agreement or causal link for deductions from her salary, but ordered reconciliation and disclosure of loan records.

• Loan Guarantees
• Burden Of Proof
• Contractual Liability
• Account Reconciliation
• Burden-of-proof
• Loan-guarantees

Lekaram & another v Onyiego

Lekaram & another v Onyiego [2025] KECPT 344 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 46.E084 of 2024

Judges

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

The tribunal found that the applicant failed to provide a credible or satisfactory explanation for the delay in filing the application to set aside the ex-parte judgment. The applicant's assertion that his previous counsel failed to act was deemed an internal matter not substantiated before the tribunal. The tribunal further held that the draft defence did not raise any triable issues, consisting only of bare denials without substantive response to the claimants' allegations. The tribunal emphasized the need for expeditious and efficient disposal of cases in line with the overriding objective…

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• Setting Aside Ex Parte Judgment
• Overriding Objective
• Loan Guarantees
• Default And Recovery

Mogonchi & 3 others v Nyasetia & another

Mogonchi & 3 others v Nyasetia & another [2025] KECPT 320 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 1043/E031 of 2023

Judges

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

The Cooperative Tribunal found the recovery from guarantors was unprocedural and ordered refund of Kshs. 74,000, with costs and interest.

• Loan Guarantees
• Guarantor Liability
• Debt Recovery
• Procedural Fairness
• Guarantor-liability
• Loan-recovery

Wambugu v Okeyo

Wambugu v Okeyo [2025] KECPT 327 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 590/E616 of 2023

Judges

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

The Tribunal awarded Kshs. 212,185 to a claimant whose shares were used to satisfy a guarantor default, but dismissed an unproven claim for lost dividends.

• Loan Guarantees
• Default And Recovery
• Dividend Loss
• Summary Judgment
• Loan-guarantees
• Default-and-recovery

Ochieng v Chuna Sacco D.T. Limited

Ochieng v Chuna Sacco D.T. Limited [2025] KECPT 281 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case E765 of 2024

Judges

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

The Tribunal found that the Respondent's action of prioritizing the repayment of loans guaranteed by the Claimant over his own loan, using his salary deductions, was not supported by any Sacco by-law or policy and was an administrative action lacking legal basis. The Tribunal held that such prioritization was unprocedural, unreasonable, and unfair, especially as the Claimant was not given prior notice or an opportunity to be heard. The Tribunal further held that the Claimant could not be considered in default of his loan as long as his salary deductions continued as per the loan agreement, an…

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• Cooperative Societies
• Loan Guarantees
• Credit Policy Compliance
• Administrative Action
• Board Member Suspension

Magut & 6 others v Kitisuru Sacco Society Limited & another

Magut & 6 others v Kitisuru Sacco Society Limited & another [2025] KECPT 280 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case 456 of 2020

Judges

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

The Tribunal barred Kitisuru Sacco from deducting guarantors’ accounts for a member’s loan after finding inadequate notice of default under the Sacco’s policy.

• Loan Guarantees
• Sacco Operations
• Guarantor Liability
• Loan Default Procedure
• Loan-guarantees
• Guarantor-liability

Trust Bank Limited (In Liquidation) (Suing through the Deposit Protection Fund Board, the Central Bank Appointed Liquidator)) v Eagles Tiles and Allied Product Limited & 2 others

Trust Bank Limited (In Liquidation) (Suing through the Deposit Protection Fund Board, the Central Bank Appointed Liquidator)) v Eagles Tiles and Allied Product Limited & 2 others [2025] KEHC 1133 (KLR)

Court

High Court

Case number

Civil Suit 239 of 2004

Judge

PM Mulwa

The High Court held that the 3rd defendant was bound by a personal guarantee for Kshs. 25 million and entered judgment for the plaintiff with interest and costs.

• Loan Guarantees
• Director Liability
• Banking Facility Disputes
• Loan-guarantees
• Guarantor-liability
• Banking-facility-disputes

Otumba v Omolla

Otumba v Omolla [2025] KECPT 190 (KLR)

Court

Cooperative Tribunal

Case number

Tribunal Case E997/928 of 2022

Judges

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

The Cooperative Tribunal found that the claimant proved he guaranteed the respondent’s Sacco loans and was entitled to reimbursement after the Sacco deducted his savings.

• Loan Guarantees
• Breach Of Contract
• Sacco Disputes
• Loan-guarantees
• Breach-of-contract
• Sacco-disputes

Nyamu v Mwangi & 2 others

Nyamu v Mwangi & 2 others [2025] KEHC 1812 (KLR)

Court

High Court

Case number

Civil Appeal E188 of 2024

Judge

JM Nang'ea

High Court dismissed an application for a temporary injunction pending appeal, finding no prima facie case where the debt was admitted and sale of charged property could proceed.

• Interlocutory Injunctions
• Statutory Power Of Sale
• Loan Guarantees
• Jurisdiction Of Tribunals
• Interlocutory-injunctions
• Statutory-power-of-sale