Kenya Case Law

Dhiman v Shah

Dhiman v Shah [2025] KECA 1264 (KLR)

Court

Court of Appeal

Case number

Civil Appeal E380 of 2023

Judges

PO Kiage, WK Korir, JM Ngugi

The Court of Appeal held that setting aside the ex parte judgment of 16th September 1999 nullified all consequential orders, including the vesting order and transfer of the suit property to the respondent. The court found the loan agreement void for unconscionability, as the interest rate of 36% compounded quarterly over decades would result in an oppressive and disproportionate liability, violating principles of fairness and equity. The court rejected the argument that the agreement was illegal under the Banking Act, finding no evidence the respondent was engaged in habitual money lending. T…

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• Loan Agreements
• Unconscionable Contracts
• Public Auction Of Property
• Rectification Of Land Register
• Unjust Enrichment

Dohashe Enterprises Limited v Speed Capital Limited & another

Dohashe Enterprises Limited v Speed Capital Limited & another [2025] KEHC 370 (KLR)

Court

High Court

Case number

Civil Case 488 of 2014

Judge

PM Mulwa

The High Court held that interest on a loan was recoverable only up to full repayment of the principal, and capped total interest at 100% of principal.

• Loan Default
• Interest Rate Disputes
• Contractual Fairness
• Unconscionable Contracts
• Loan-default
• Interest-rate-disputes

Mogo Auto Limited v Otianga

Mogo Auto Limited v Otianga [2024] KEHC 13055 (KLR)

Court

High Court

Case number

Civil Appeal E036 of 2024

Judge

RE Aburili

High Court partly allowed an appeal over motor-vehicle finance repossession, setting aside the in duplum ruling and injunction, but restoring the vehicle for lack of notice.

• In Duplum Rule
• Repossession Procedure
• Loan Contracts
• Injunctive Relief
• Unconscionable Contracts
• In-duplum-rule

Premier Credit Limited v Sielei

Premier Credit Limited v Sielei [2024] KEHC 10275 (KLR)

Court

High Court

Case number

Commercial Appeal E206 of 2020

Judge

PM Mulwa

The court found that although parties are generally bound by the terms of their contract, including agreed interest rates, courts retain the power to intervene where contractual terms are unconscionable or grossly unfair. In this case, the loan agreement required repayment of Kshs. 896,784 on a principal of Kshs. 250,000 over 84 months, representing an annual interest rate of 30.36% and a total repayment more than three times the principal. The court held that such terms were grossly unfair and punitive, amounting to an unconscionable contract. Guided by established case law, the court conclu…

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• Loan Agreements
• Contractual Interest Rates
• Unconscionable Contracts
• Appeals Process

Mwaura v CK Gitonga t/a Koome & Koome Advocates

Mwaura v CK Gitonga t/a Koome & Koome Advocates [2024] KEHC 10348 (KLR)

Court

High Court

Case number

Civil Miscellaneous Application 28 of 2024

Judge

SM Mohochi

The court found that the fee agreement dated 8th January 2024, which required the applicant to pay Kshs 300,000 for drafting an out-of-court settlement agreement, was manifestly excessive and contrary to the cost-effective principles underlying the Small Claims Court Act. The court noted that Section 45(2) of the Advocates Act empowers it to set aside or vary such agreements if they are harsh, unconscionable, or unreasonable. The court was persuaded that the drafters of the Small Claims Court Act intended to ensure access to justice in an inexpensive manner, and that remuneration for advocate…

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• Advocate Client Fees
• Fee Agreements
• Unconscionable Contracts
• Remuneration Orders

Wekesa v Matata

Wekesa v Matata [2024] KEHC 8284 (KLR)

Court

High Court

Case number

Civil Appeal E685 of 2022

Judge

JN Njagi

The High Court allowed an appeal over a loan dispute, holding the respondent had not proved waiver of interest or unconscionability and that the appeal court could not rewrite the contract.

• Loan Enforcement
• Contractual Interest
• Unconscionable Contracts
• Jurisdiction Of Small Claims Court
• Pleadings And Evidence
• Contractual Waiver

Wekesa v Karumbu

Wekesa v Karumbu [2024] KEHC 8283 (KLR)

Court

High Court

Case number

Civil Appeal E682 of 2022

Judge

JN Njagi

The High Court found that the trial adjudicator erred in denying the appellant interest on the loan on grounds of unconscionability, as this issue was not pleaded by the respondent and was only raised in submissions, which do not constitute evidence. The court held that parties are bound by their contracts unless vitiating factors are pleaded and proved, which was not the case here. The agreement between the parties clearly stipulated the amount owed and the applicable interest, and there was no documentary evidence to support the respondent's claim that interest was waived. The court also fo…

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• Loan Enforcement
• Contractual Interest
• Unconscionable Contracts
• Jurisdiction Of Small Claims Court
• Pleadings And Evidence
• Costs Award

Kimutai & another (Suing as personal representative of Estate of Jeremiah Cheruiyot Kimutai) v Kenindia Assurance Company Ltd

Kimutai & another (Suing as personal representative of Estate of Jeremiah Cheruiyot Kimutai) v Kenindia Assurance Company Ltd [2024] KEHC 1908 (KLR)

Court

High Court

Case number

Civil Case 56 of 2006

Judge

SM Mohochi

The High Court dismissed a challenge to a 1991 loan charge, holding the plaintiffs failed to prove illegality or unconscionable interest and that limitation had run.

• Loan Default
• Mortgage Enforcement
• Interest Rate Regulation
• Statute Of Limitations
• Unconscionable Contracts
• Duplum Rule

Aisha Motor Dealers Ltd v Guru

Aisha Motor Dealers Ltd v Guru [2023] KEHC 27229 (KLR)

Court

High Court

Case number

Civil Appeal E301 of 2023

Judge

DKN Magare

High Court appeal over a vehicle sale dispute. The court held the agreement was in substance a sale, corrected the refundable amount to Kshs. 500,000, and dismissed the appeal with costs.

• Hire Purchase Agreements
• Unconscionable Contracts
• Repossession Of Goods
• Unconscionable-contracts
• Vehicle-sale-disputes
• Repossession-of-goods

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