, NAIROBI, Kenya, July 13 – The Law Society of Kenya (LSK) is seeking a review of the Money Lenders Act that was repealed way back in 1984.
Through a petition to the National Assembly, the Society’s President Allen Gichuhi said the various Acts through which credit services are provided do not adequately protect borrowers and mobile lending.
He noted that ordinary citizen are suffering at the hands of unscrupulous lenders and shy-locks who are charging high monthly interest rates at 5 per with no protection for innocent borrowers.
“The Money Lender Act was repealed in 1984 and has not been replaced with any other act to regulate individuals who provide credit services in view of providing equity and equality for all Kenyans citizen as the provided by law,” he said.
He argued that Parliament being the legislative organs, the petition is falls under its purview and province in which the issue raised can be properly addressed.
The expenses lawfully incurred in the recovery of any amount owed by the debtor the Act should pronounce that it should not be charged from the debtor, he says in the petition.
The president contended that, Parliament should legislate into law that all credit agreement, interest shall automatically stop to run when it equals unpaid principal.