Faulu Microfinance Bank Limited v Simiyu (Commercial Case E142 of 2024) [2024] SCC 27 (KLR)
The bottom line
#A Kenyan lender lost a Kshs. 445,499 loan claim because it never filed the loan statement account proving the borrower actually defaulted.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.whether the Claimant proved their claim to the required standards
Key legal issues
#Whether the Claimant proved its claim to the required standard in an undefended claim
The claim was not proved because the Loan Statement Account relied upon in evidence was never filed, so default could not be established
The loan advance was corroborated by the Personal Loan Application Form and Verification Form dated 16th July 2021, and CW1 testified. However, although CW1 referred to a Loan Statement Account, that document was not among those filed. Without it, the court could not make a definitive finding of default, and the claim failed on proof despite being undefended.
Legal principles established
#- A claimant must produce the loan statement account to prove default in servicing a loan facility; without it default cannot be established
Court orders
#- 1.This Claim is struck out without an order of costs
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Original jurisdiction of the adjudicator over the money claim as pleaded in the Statement of Claim dated 05th September 2024
Relief refused
#Judgment in the sum of Kshs. 445,499.77/= with interest until full payment
The Loan Statement Account referred to in evidence was not filed, so the court could not find that the Respondent defaulted in servicing the loan
Costs of the claim
The claim was struck out without an order of costs
Costs
Claim struck out without an order of costs
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
The only issue for determination is whether the Claimant proved their claim to the required standards.
Whereas CW1 made reference to a Loan Statement Account during his testimony before this court, this court notes that the said Loan Statement Account was not part of the documents filed to support the claim herein.
For the reasons above, this Claim is struck out without an order of costs.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Faulu Microfinance Bank Limited v Simiyu (Commercial Case E142 of 2024) [2024] SCC 27 (KLR)", Case Analysis (2024). Statement of Claim dated 05th September 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2024/27/eng@2024-09-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.