Kenyan Members of Parliament (MPs) are reviewing a petition to cap loan interest so borrowers don't pay more than the original principal, addressing the rise of predatory lenders with excessive charges. The petition seeks to formally codify and strengthen the in duplum rule, a legal principle preventing interest from exceeding the principal.

• The petition was filed by senior lawyer Allen Waiaki Kishore.
• The in duplum rule, already found in Section 44A of the Banking Act, states that if unpaid interest equals the principal, no further interest may accrue.
• Recent court decisions have extended this rule beyond banks to all lenders, including microfinance institutions, SACCOs, digital lenders, and private individuals.
• The petition aims to clarify when the rule takes effect, its application to fees beyond interest, and mechanisms for borrowers to recover overcharges, highlighting regulatory gaps in Kenya's lending sector.
• The National Assembly referred the petition to the Public Petitions Committee for review.
• Embakasi East MP Babu Owino (ODM) is also pursuing separate legislation to curb exploitative lending on consumer items like motorcycles and mobile phones, where Kenyans often pay two to three times the original cost.