Ellegant Credit Ltd v Kamundia (Commercial Case E17396 of 2024) [2026] SCC 51 (KLR)
The bottom line
#A Kenyan court cut a lender's Kshs. 170,000 claim to Kshs. 37,000 because its 5% monthly interest was unfairly excessive.
What this practically means
#Executive summary
#Key legal issues
#Whether the outstanding sum of Kshs. 170,000/= is legally recoverable considering repayments and interest terms
Only Kshs. 37,000/= is recoverable; the excessive interest was unconscionable and contrary to the in duplum principle, and judgment was entered for the net balance after repayments
It was undisputed that the respondent received a loan of Kshs. 150,000/= and repaid Kshs. 140,000/=. The claimant's 5% monthly interest equated to about 60% per annum, inflating the claim to more than twice the principal, which offends the in duplum rule restraining unfair enrichment of lenders. The court substituted a lawful interest of 18% per annum for twelve months, yielding Kshs. 177,000/= less Kshs. 140,000/= repaid, leaving Kshs. 37,000/= awardable.
Who bears the burden of proof
The burden of proving a fact lies on the party wishing the court to believe in its existence, on a balance of probabilities
Relying on the Court of Appeal decision in Mumbi M'Nabea v David M. Wachira and sections 107, 108 and 109 of the Evidence Act, the court applied the civil standard of proof on a balance of probabilities. The claimant had to prove the sums claimed over and above admitted receipts and repayments, and succeeded only partially.
Legal principles established
#- The standard of proof in civil claims is on a balance of probabilities
- A court retains discretion to decline enforcement of unconscionable contract terms notwithstanding the general binding nature of contracts
Court orders
#- 1.Judgment entered in favour of the claimant as against the respondent for the sum of Kshs. 37,000/=
- 2.The claimant is awarded costs of Kshs. 10,000/=
- 3.The respondent is awarded 30 days stay of execution
- Jurisdiction invoked
- Small Claims Act, Section 30 (proceedings without formalities)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ellegant Credit Ltd v Kamundia (Commercial Case E17396 of 2024) [2026] SCC 51 (KLR)", Case Analysis (2026). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/51/eng@2026-06-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.