KBA chief executive officer Habil Olaka (left) and Jared Osoro, the
research and policy director, at a recent event. PHOTO | FILE
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
Posted
Friday, October 30
2015 at
12:27
In Summary
- The Kenya Bankers Association was seeking to
terminate a case pitting banks against borrowers who are accusing them
of charging interest rates without the Finance minister’s authority as
required by law.
- Kenyan law requires lenders to seek the minister’s permission before increasing interest rates or other bank charges.
- The
Supreme Court ruled that the issues the KBA had raised in its appeal
had not been argued in the lower courts and could therefore not be
canvassed in the top court.
- The ruling paves the way for hearing of the case to begin in earnest.
Commercial banks Thursday lost a last-ditch effort to
terminate a potentially devastating class action suit pitting them
against hundreds of borrowers who are seeking compensation for interest
rates they claim were illegally charged on their loans.