And it just became one of Kenya's most important debt rulings.
January 2021. COVID-19 had crushed businesses. Mbobu, a respected advocate and law lecturer, needed capital.
He turned to Hypac Investments Limited.
The terms?
→ 15% interest per month
→ 5% weekly penalty for late payments
→ His family home as collateral
Do the math.
That's over 400% annual interest when compounded.
He paid.
And paid.
And paid.
Ksh22 million total. Double the original loan.
But the lender said: "Not enough. You owe us Ksh69 million." And they moved to take his home.
Mbobu took them to court.
Then, in September 2025, while the case was still pending...He was shot dead by unknown gunmen along Magadi Road.
And last week, Justice Moses Ado delivered the judgment. Posthumously.
And it's a game-changer for every Kenyan in debt.
Here's what the court said:
✅ The loan terms were unconscionable and illegal. "No reasonable borrower could sustain such oppressive terms."
✅ The in duplum rule applies. Once interest paid equals the principal, it STOPS. The debt was fully satisfied at Ksh22 million.
✅ The property must be returned. Hypac and Family Bank (who held a secret charge) have 30 days to discharge the title and return it to Mbobu's estate.
✅ Any further claim is unenforceable. Not one more shilling is recoverable.
What this means for YOU:
If you're a borrower:
→ Signing a contract doesn't mean you've waived all your rights.
→ Courts will intervene when terms are predatory.
→ Know the in duplum rule: once your interest paid = principal, you're legally protected.
→ Document EVERYTHING. Keep receipts, statements, reconciliations.
If you're a lender:
→ Unconscionable terms will NOT be enforced.
→ Exploiting someone's distress will cost you the entire debt.
→ You cannot secretly deal with collateral—it's a breach of trust and law.
→ Fair lending isn't optional. It's the law.
Rest in peace, Mathew Kyalo Mbobu.
Your fight wasn't in vain.
This ruling will protect thousands.
-gidi
#wealth
#TheHeartbeatOfLeadership
#Shylock
#loans
#kenya
