A petition has been filed before the Kenyan Parliament seeking stricter regulation of loan interest charges. The petition, submitted by lawyer Allen Waiyaki Gichuhi, aims to amend the Consumer Protection Act to codify the in duplum rule, which limits interest on non‑performing loans to the outstanding principal amount.
According to Speaker Moses Wetangula, the petitioner argues that, although the in duplum rule is recognised under the Banking Act, borrowers continue to face excessive interest charges, penalties and fees from lenders. This has resulted in violations of consumer rights and unfair deprivation of property, as outlined in Article 46 of the Constitution.
Kenya has experienced a surge in digital‑credit providers, many of which have been accused of charging high interest rates, particularly to motorbike riders and low‑income borrowers. Consequently, calls to regulate the sector have grown as borrowers struggle with increasing debt burdens.
The petitioner seeks clarification on when the in duplum rule takes effect and whether it applies to penalties and default charges in addition to interest. The petition also proposes the establishment of uniform mechanisms for debt restructuring and recovery, as well as legal redress for borrowers subjected to unlawful charges, including refunds or set‑offs.
The petition has been referred to the Public Petitions Committee for review, with a directive to report its findings to the House and the petitioner. This development comes as the Kenyan government faces mounting pressure to address predatory lending practices and protect consumer rights. The proposed amendments to the Consumer Protection Act could have significant implications for Kenya’s lending industry and provide much‑needed relief to borrowers affected by excessive interest charges.
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