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Small ClaimsPartially AllowedNot stated in the judgment provided

Elizabeth v Ariwi t/a St David Primary School (Commercial Case E230 of 2026) [2026] SCC 142 (KLR)

Small Claims Court
18 June 2026
TMTheresa N. Mwangeka
1,048 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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A Mombasa Small Claims Court ordered a borrower to repay Kshs. 9,000 because 'I didn't sign' alone is not a defence in Kenya.

What this practically means

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Executive summary

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This Small Claims Court judgment at Mombasa concerned an alleged loan of Kshs. 20,000/- advanced on 23rd April 2025 pursuant to a Loan Agreement. The Claimant testified that the Respondent sent his workmate, David Lewa, to apply for and receive the loan, with repayment promised in two weeks. Kshs. 6,000/- was repaid in cash and, after the matter was reported to the police, a further Kshs. 5,000/- was sent by the Respondent's wife, totaling Kshs. 11,000/-. The Claimant sought Kshs. 29,000/- being the balance plus interest. The Respondent denied taking the loan, denied signing the form, denied sending David, and could not explain why his wife sent money to the Claimant. The court framed the sole issue as whether the Claimant had proved its case on a balance of probabilities. Relying on Margaret Njeri Mbugua v Kirk Mweya Nyaga on the insufficiency of a bare denial, and Anne Wambui Ndiritu v Joseph Kiprono Ropkoi & Another on the evidential burden under sections 107(1), 109 and 112 of the Evidence Act, the court held that the Respondent had not disputed the existence or contents of the agreement, had failed to explain his wife's payments, and had neither called David Lewa nor taken out a third-party notice. Judgment was entered for the Claimant for Kshs. 9,000/- being the unpaid balance of the principal. The agreed-interest claim was denied because the Claimant is not a registered money lender; instead, court-rate interest runs from the date of filing, with costs fixed at Kshs. 2,000/-.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the Claimant has proved its case on a balance of probabilities against the Respondent

Key legal issues

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01

Whether the Claimant proved the loan claim against the Respondent on a balance of probabilities

Holding

The claim was proved to the extent of Kshs. 9,000/-, the unpaid balance of the Kshs. 20,000/- loan

Reasoning

The loan application form bore the signature of David Lewa, who came on behalf of the Respondent. The Respondent did not dispute the existence of the agreement or its details, only his signature. He was confirmed to have been called to the police over the matter, and failed to explain why his wife sent the Claimant money. He offered no evidence beyond denial, did not call David Lewa or take out a third-party notice, and therefore failed to disprove that David acted under his instructions.

p. 2
02

Evidential burden on a party relying on a bare denial

Holding

A mere denial is insufficient; the Respondent bore the evidential burden under sections 109 and 112 of the Evidence Act to disprove the indebtedness

Reasoning

Applying Margaret Njeri Mbugua v Kirk Mweya Nyaga and Anne Wambui Ndiritu v Joseph Kiprono Ropkoi & Another, the court held that a defendant who denies liability must give a fair and substantial answer, and where a fact is especially within a party's knowledge, the burden of proving or disproving it rests on that party. The Respondent adduced no such evidence.

p. 2

Legal principles established

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  • A mere denial is not a sufficient defence; a defendant must give a fair and substantial answer and show a reason why the money is not owed
  • Under section 112 of the Evidence Act, where a fact is especially within the knowledge of a party, the burden of proving or disproving it lies on that party

Court orders

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  1. 1.Judgment entered in favor of the Claimant against the Respondent for Kshs. 9,000/- being the balance of the principal sum of Kshs. 20,000/-
  2. 2.The claim for interest denied; the said sum shall attract interest at court rates from date of filing
  3. 3.Costs awarded at Kshs. 2,000/-

The bench

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One judgment of the whole court — no separate or dissenting opinions.

TM
majority

Wrote the judgment

Jurisdiction invoked
Small Claims Court jurisdiction over the money claim (no specific provision cited in the judgment)

Relief refused

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Claim for Kshs. 29,000/- (balance plus interest) as sought in the Statement of Claim

The court awarded only Kshs. 9,000/- being the outstanding balance of the Kshs. 20,000/- principal, since Kshs. 11,000/- had been repaid

p. 3

Interest as agreed on the loan

The Claimant is not a registered money lender as per the law

p. 3

Costs

Costs awarded at Kshs. 2,000/-

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Consequently, judgment is entered in favor of the Claimant against the Respondent for Kshs. 9,000/being the balance of the principal sum of Kshs. 20,000/-.
p. 3Final orders - judgment amount
The claim for interest is denied as the Claimant is not a registered money lender as per the law. The said sum shall attract interest at court rates from date of fiiling. Costs are awarded at Kshs. 2,000/-.
p. 3Final orders - interest and costs
this court finds that the sole issue for determination is whether the Claimant has proved its case on a balance of probabilities against the Respondent.
p. 2Issue framing
A mere denial is not a suficient defence and a defendant has to show either by afidavit, oral evidence, or otherwise, that there is a good defence
p. 2Effect of bare denial (as cited from Margaret Njeri Mbugua v Kirk Mweya Nyaga)
The Respondent has therefore failed to disprove that David Lewa was not acting under his instructions when taking the loan from the Claimant.
p. 2Agent's authority and failure of rebuttal

Issues in the judgment

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minor

Judgment date anomaly - the hearing is recorded as 4th June 2026 and judgment as 18th June 2026, but the loan agreement is dated 23rd April 2025; the year 2026 appears to be in the future relative to the stated loan date, suggesting a possible typographical error in the dates

minor

The case title and case number do not appear in the judgment text provided; parties are referred to only as Claimant and Respondent

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Elizabeth v Ariwi t/a St David Primary School (Commercial Case E230 of 2026) [2026] SCC 142 (KLR)", Case Analysis (2026). Not stated in the judgment provided. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/142/eng@2026-06-18

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.