MPs Petitioned to Amend Law as Borrowers Cry Out Over Crushing Interest Rates
Kenyan borrowers may finally breathe a sigh of relief. On Tuesday, the National Assembly received a powerful petition seeking to amend the Consumer Protection Act Cap 501. The goal? To shield borrowers from excessive interest rates and financial exploitation.
“We Must End This Cycle of Debt,” Petition Urges
Senior Counsel Allen Waiaki Kishore, who filed the petition, called for the in duplum rule to be clearly enshrined in law. Currently, the rule exists under Section 44A of the Banking Act. It states that once a loan becomes non-performing, interest should not exceed the principal.
“The purpose of the rule is to protect borrowers from exploitation,” the petition reads. “It prevents endless accumulation of interest and encourages fair lending practices,” it adds.
However, lenders continue to pile on interest, penalties, and fees—often exceeding the original loan amount.
Wetang’ula Confirms Petition Is Under Review
Speaker Moses Wetang’ula informed MPs that the petition had been committed to the Public Petitions Committee.https://dailymirror.co.ke/ndindi-nyoro-claims-govt-used-fuel-levy-to-secure-secret-ksh175b-loan/
“This matter is not before any court or constitutional body,” Wetang’ula said. “It is therefore admissible under parliamentary procedures,” he added.
The petition seeks a clear legal framework to define when the in duplum rule applies and whether it includes penalties and fees.
Borrowers Face Harassment and Confusion
Kishore raised concerns about aggressive debt collectors and inconsistent court rulings. Many borrowers remain unaware of their rights, making them easy targets.
“Lenders, especially microfinance outfits, exploit ignorance,” the petition claims. “They flout the law and trap borrowers in endless debt,” it adds.
The petition also calls for redress mechanisms to refund or settle cases where borrowers were unlawfully overcharged.
“We Need Justice, Not Just Loans,” Citizens Say
Kenyans have reacted emotionally to the news. Many shared stories of loans that ballooned beyond control due to hidden charges.
“I borrowed Ksh50,000. Now I owe over Ksh120,000,” said a frustrated borrower. “This law must change,” she added.
Others urged Parliament to act swiftly and protect vulnerable citizens from financial ruin.
“We need justice, not just loans,” said a youth leader in Nairobi.
Parliament Faces Pressure to Deliver Reform
As the petition gains traction, MPs are under pressure to act. Borrowers want clarity, fairness, and protection—not more confusion.
“Let’s amend the law with transparency, accountability, and social justice,” Kishore urged.
Now, all eyes are on Parliament. Will they listen to the cries of the overburdened?
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MPs Petitioned to Amend Law as Borrowers Cry Out Over Crushing Interest Rates
