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Originally published by Kenyanstop
September 1, 2026
1h ago
Kenyan Borrowers Get Key Warning as Court Rules on Foreign Loans

The decision also highlights the importance of understanding how cross-border financing agreements are structured...
✨ Key Highlights
The Court of Appeal has ruled that Kenyan borrowers cannot use a foreign lender's lack of registration in Kenya as an automatic excuse for non-repayment of loans.
- The ruling overturned a High Court decision that had dismissed a case involving a foreign lender seeking to recover approximately Ksh29.88 million (USD 230,868.51).
- The Court of Appeal clarified that non-registration does not automatically invalidate debts or contracts for foreign companies.
- This decision serves as a reminder to Kenyan businesses and individuals entering cross-border financing arrangements that loan enforceability is not solely dependent on the lender's Kenyan registration.
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