The owners of Nairobi’s 14 Riverside complex, Cape Holdings Limited, want the High Court to determine whether a section of the Banking Act is unconstitutional for allowing interest on court-awarded debts to grow beyond the principal amount and expose borrowers to potentially disproportionate financial claims.
The company and its directors are challenging Section 44A (4) of the Banking Act, which excludes judgment debtors and court decrees from the protection of the in duplum principle. This rule generally limits recoverable interest on a debt to the outstanding principal.
