A Kenyan court has halted the repayment of what was initially described as a friendly loan of Sh7 million, which ballooned to an astonishing Sh69 billion, following allegations of spiraling interest and dubious contract terms.
The borrower, who accepted the loan under oral agreement, disputes the lender’s claim after seeing the debt inflate by more than 980,000%.
The court restrained both interest and repayment actions, citing potential exploitation and the need to assess the legality of the original contract.
Legal experts say this ruling draws attention to the perils of informal lending and calls for stricter oversight to protect individuals from debt spirals born out of ambiguous agreements.
The case has sparked widespread debate, warning Kenyans to scrutinize terms and remember that “friendly” loans can carry unexpected and ruinous consequences.
Written By Ian Maleve
