The court said the charges were not only unreasonable but also unlawful.
The case centered on a loan of Sh10 million that had been issued to Kositany. Over time, however, the amount being demanded by KDC rose sharply to about Sh180 million.
This dramatic increase raised questions and led to the legal challenge. The family argued that the interest and penalties applied to the loan were excessive and did not follow proper rules.
After reviewing the evidence, the High Court agreed with the family’s claims. The judge noted that the bank had no legal basis to demand such a high amount from the borrower.
According to the ruling, financial institutions must act within the law and ensure that their loan terms are fair, clear, and reasonable.
The court emphasized that lenders should not take advantage of borrowers by applying hidden or inflated charges.
It added that any interest charged must be transparent and agreed upon at the time the loan is issued. In this case, the judge found that the bank had failed to meet these standards.
The ruling is seen as a significant reminder to banks and other lenders about the importance of fairness and accountability.
It also highlights the role of the courts in protecting borrowers from exploitation.
For Kositany’s family, the judgment is both a financial and emotional victory.
They had maintained that the demands made by the bank were unjust and placed unnecessary pressure on them. The refund order now offers some relief after years of dispute.
Legal experts say the case could influence how similar disputes are handled in the future.
It may encourage more borrowers to question unclear or excessive loan terms and seek legal redress where necessary.
At the same time, the ruling sends a clear message to financial institutions to review their practices.
Banks are expected to follow regulations and ensure that their dealings with customers are honest and lawful.