Joyce Rasugu & another (Suing As the Legal Representatives of Mosiabano Self Help Group) v Richard Maare Mogire [2020] eKLR Case Summary

Court
Micro and Small Enterprises Tribunal at Kisii
Category
Civil
Judge(s)
Joseph M. Were (Chairperson), Ocharo Kebira (Member), Annette Gikuya (Member)
Judgment Date
January 07, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the 2020 case summary of Joyce Rasugu & another v Richard Maare Mogire, detailing the legal representatives' claims on behalf of Mosiabano Self Help Group and its implications.

Case Brief: Joyce Rasugu & another (Suing As the Legal Representatives of Mosiabano Self Help Group) v Richard Maare Mogire [2020] eKLR

1. Case Information:
- Name of the Case: Joyce Rasugu & Abel Kebaso Ototo (Suing as the Legal Representatives of Mosiabano Self Help Group) v. Richard Maare Mogire
- Case Number: Claim Number 11 of 2019
- Court: Micro and Small Enterprises Tribunal at Kisii
- Date Delivered: January 7, 2020
- Category of Law: Civil
- Judge(s): Joseph M. Were (Chairperson), Ocharo Kebira (Member), Annette Gikuya (Member)
- Country: Kenya

2. Questions Presented:
The central legal issues in this case revolve around:
- Whether the Claimants are entitled to recover the principal amount of Kshs. 100,000/- along with the claimed interest from the Respondent.
- The appropriateness of the interest rate sought by the Claimants and its compliance with public policy.

3. Facts of the Case:
The Claimants, Joyce Rasugu and Abel Kebaso Ototo, are members and officials of the Mosiabano Self Help Group. They filed a claim against Richard Maare Mogire, a member of the same group, for a total sum of Kshs. 100,000/- which had been lent to him in two installments of Kshs. 50,000/- each on March 2, 2017, and August 2, 2017. The Claimants alleged that the Respondent failed to repay the loan along with the interest as stipulated in the Loan Agreements executed between the parties.

4. Procedural History:
The Claimants initiated the claim on July 10, 2019, serving the Respondent with the necessary documents including a notice of claim, statement of claim, and witness statement. The Respondent did not respond or appear in court. On December 19, 2019, the Tribunal allowed the Claimants to proceed with formal proof rather than entering a default judgment, as the interest rate claimed raised concerns regarding its reasonableness.

5. Analysis:
- Rules: Relevant legal principles include the enforceability of loan agreements and the regulation of interest rates. The Tribunal assessed the interest rate claimed by the Claimants against public policy considerations.
- Case Law: The Tribunal referenced prior cases that addressed unconscionable interest rates, emphasizing the need for fairness and adherence to public policy in financial agreements.
- Application: The Tribunal found that the Claimants adequately proved their case on a balance of probabilities regarding the principal amount owed. However, it rejected the Claimants' request for a 10% monthly interest rate, deeming it unconscionable. Instead, the Tribunal awarded interest at the ordinary court rate of 14% per annum from the date of borrowing until full payment.

6. Conclusion:
The Tribunal ruled in favor of the Claimants, awarding them the principal amount of Kshs. 100,000/- with interest at 14% per annum. The Respondent was ordered to bear the costs of the claim, assessed at Kshs. 25,000/-. This decision underscores the Tribunal's commitment to upholding public policy by rejecting exorbitant interest rates.

7. Dissent:
There were no dissenting opinions noted in this case, as the judgment was unanimous among the Tribunal members.

8. Summary:
The outcome of this case highlights the importance of reasonable interest rates in loan agreements and the Tribunal's role in ensuring that claims are adjudicated fairly and in accordance with public policy. The Tribunal's decision to award interest at a more reasonable rate reflects a balance between the rights of the lenders and the protection against unconscionable financial practices. The case serves as a precedent for future disputes involving similar claims in the Micro and Small Enterprises Tribunal.

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