Canva Trading Kenya Ltd Mombasa v Mwanasema Ali Mwaguya [2021] eK;R [2021] KEMSET 410 (KLR)
- Court
- KEMSET
- Case number
- 410
- Citation
- [2021] KEMSET 410 (KLR)
- Decided
- 15 July 2021
AI Summary
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Machine-generated — may contain errors. Not legal advice.
Typeloan recoveryPostureclaim under certificate of urgencyCoramJ. BETT, R. KATINA, J. WERE, A.GIKUYA, A.KIBET
Holding
Interest payable should not exceed Kshs. 16,500/- as per the In Duplum rule, and the principal sum of Kshs. 16,500/- is not disputed.
Facts
Mwanasema Ali Mwaguya applied for a loan of Kshs. 16,500/- from Canva Trading Kenya Ltd Mombasa, which was approved but Mwaguya failed to repay the loan. Canva Trading Kenya Ltd Mombasa filed a claim for Kshs. 72,600/-, including interest, before the Micro and Small Enterprises Tribunal.
Issues
- determination of interest payable
- principal sum of the loan
Reasoning
The Tribunal applied the In Duplum rule, which limits interest to the principal amount when a loan becomes non-performing, to determine the interest payable.
Outcome
The Respondent is ordered to pay the principal sum of Kshs. 16,500/-, interest of Kshs. 16,500/-, and Kshs. 10,000/- in costs.
Orders
- Principal sum of Kshs. 16,500/-
- Interest of Kshs. 16,500/-
- Kshs. 10,000/- in costs
Remedies
- Payment of principal and interest
- Payment of costs
Authorities cited
Legislation (1)
- Banking Act
Cases cited (2)
- Kenya Hotels Ltd v Oriental Commercial Bank Ltd
- Housing Finance Company of Kenya Limited v Scholarstica Nyaguthii Muturi
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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