JUDGMENT OF THE COURT
1. There is a perennial vexing nightmare for borrowers who take a relatively small loan from a lending institution, but a few years down the line, the institution drops a bombshell of a demand for the immediate payment of a colossal sum, literally bankrupting the borrower, if not confining him/her to a hospital bed due to depression. The main bones of contention are invariably: uncertainty of lending terms and documentation, fluctuating rates of interest, penalty interest, default charges, interest on arrears, additional interest, commissions, bank charges, bank statements or lack of them, among others which may or may not have been part of the written contract. Take this case.
2. The appellant, Pius Kimaiyo Langat (Langat) was said to have borrowed Sh. 500,000 in 1997 but in 2004 the amount had ballooned to Sh. 4.7 million, rose further to Sh. 6.2 million in 2009 and continued to rise after the Judgment of the High Court in 2012. The respondent, Co-operative Bank …