Petition seeks stricter law to curb predatory lending in Kenya
NAIROBI, Kenya, Sept 24 - A fresh petition before Parliament is seeking tighter regulation of loan interest charges, amid growing concern over predatory Kenya breaking news | Kenya news today |..
✨ Key Highlights
A new petition filed in the Kenyan Parliament seeks stricter regulation of loan interest charges to combat predatory lending practices by banks, digital lenders, and shylocks.
- The petition, filed by lawyer Allen Waiyaki Gichuhi, proposes amending the Consumer Protection Act, Cap. 501 to codify the in duplum rule.
- The in duplum rule caps interest on non-performing loans at an amount equal to the outstanding principal.
- The petition highlighted concerns that lenders charge interest, penalties, and fees exceeding the loan principal despite the in duplum rule being recognized under Section 44A of the Banking Act.
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Court Orders Target StanChart and Ecobank; Petition Seeks Stricter Lending Laws - September 2025
The High Court has halted the release of Sh7 billion in pension funds to 629 retirees of Standard Chartered Bank due to a dispute over legal fees. The injunction was issued by Justice Moses Ado following an application by lawyer Ruth Wanyonyi. In a separate case, the High Court ordered the seizure and auction of EcoBank Kenya’s assets to recover KSh 284 million owed to the estate of former cabinet minister Mbiyu Koinange, a ruling that redefines banks’ obligations in managing estate accounts. Concurrently, a new petition has been filed in the Kenyan Parliament seeking stricter regulation of loan interest charges to combat predatory lending practices by banks, digital lenders, and shylocks.
