How a Ksh7M Loan From a Friend Grew to Ksh69B, Costing a Kenyan His Lavington Estate

Hello and welcome to the Money News Roundup. Today, we’re covering the Court of Appeal’s ruling in a case where a man borrowed Ksh7 million from a friend—only for the interest to balloon the debt to Ksh69 billion—and why Kenyans will now pay Ksh32,000 more when applying for US visas.

The Art of a Friend’s Bad Deal

A man who borrowed Ksh7 million from a friend can now breathe a sigh of relief after the Court of Appeal overturned a loan agreement whose interest had pushed the debt to Ksh69 billion.

According to Business Daily, the two friends entered the deal in 1996 with an unusually high annual interest rate of 36%. The borrower, however, defaulted after repaying Ksh3 million, and the debt spiraled to over Ksh69 billion by 2025 due to compounded interest.

At the time, average bank lending rates stood at 28.5%, and while the interest wasn’t illegal, the courts later found it excessive and exploitative.

The lender sued at the High Court in 1999, won the case, and went on to seize the borrower’s Lavington estate as compensation.

But in a dramatic turn, the Court of Appeal reversed the ruling, declaring that the terms of the agreement were unfair and that enforcing such a contract would violate basic principles of equity.

“In the present case, the sheer disparity between the original loan and the amount which would now be due evidences a contract whose enforcement, without judicial intervention, would undermine principles of fairness, good faith, and proportionality. We, therefore, find the contract between the parties void for unconscionability,” the judges ruled.

Read more in Business Daily.

Here are other top business headlines this morning;

Kenyans to Pay More for U.S. Visas as New Ksh32,000 Fee Takes Effect

Kenyans planning to visit the United States will soon face higher visa costs following the introduction of a new $250 (approx. Ksh32,500) Visa Integrity Fee by the Trump administration. According to Kenyans.co.ke, the new fee—part of the One Big Beautiful Bill Act signed into law on July 4, 2025—will apply to nearly all non-immigrant visas, including tourist, student, and work visas, and will be charged in addition to existing visa application fees.

The fee takes effect from October 1, 2025, and excludes countries in the U.S. Visa Waiver Program, such as the UK, France, and Japan. Kenya, like most African nations, is not exempt. As Kenyans.co.ke reports, this means a typical Kenyan applicant for a tourist visa, who currently pays $185, will now pay up to $435 (around Ksh56,500)—with a possibility of even higher costs in the future depending on U.S. policy adjustments.

Deported Turkish Businessman Behind Controversial Laikipia Solar Project

A company linked to Harun Aydin, a controversial Turkish businessman known for his close ties to President William Ruto, is seeking to develop a 50-megawatt solar power plant in Laikipia County under questionable circumstances. According to Kenyans.co.ke, the company—Unit 2HA Investment Energy Africa—has already received regulatory approval to proceed with the project on a 3,000-acre parcel of land despite discrepancies in its submitted environmental and financial documentation.

Mr. Aydin, who was deported from Kenya in 2021, is listed as a director and shareholder of the firm in official filings. Business Daily reports that the project has raised concerns over transparency and due diligence, given the inconsistencies in disclosures and the businessman’s past controversies.

NSE to Allow Single-Share Trading in Landmark Shift for Retail Investors

Starting August 1, retail investors at the Nairobi Securities Exchange (NSE) will be able to buy and sell shares in units as small as one, following a regulatory green light from the Capital Markets Authority (CMA). The rule change marks the end of the longstanding requirement to trade in minimum lots of 100 shares, a move aimed at boosting retail participation in the stock market. According to the Standard, the shift addresses a key barrier that has kept many Kenyans, especially those eyeing high-value stocks, from entering the market.

With this amendment, the NSE will also phase out the Odd Lot Board, which was previously used for smaller trades. NSE CEO Frank Mwiti said the move is part of efforts to make the stock market more inclusive and reflective of the financial realities of everyday Kenyans. Kenyans.co.ke also quoted Kasib’s Leah Maina, who noted that the change is expected to spark increased interest among retail investors and aligns with the NSE’s broader strategy to revitalise the market through enhanced accessibility.

Auditor General Flags Ksh1.96 Billion Irregular Stadium Tenders

Auditor General Nancy Gathungu has flagged Sports Kenya for awarding irregular contracts worth Ksh1.96 billion for the refurbishment of Kericho Green Stadium, Bukhungu Stadium, and Masinde Muliro Stadium in Bungoma, People Daily Reports. In Kericho’s case, a contractor was engaged even before the procurement process began. At Bukhungu, Phase III works were awarded before Phase II was completed. At Masinde Muliro, a contract was signed before the contractor had formally accepted the award — violating procurement law.

The report also reveals that Moi International Sports Centre illegally entered a revenue-sharing deal with the Nairobi Metropolitan Area Transport Authority to host a Bus Rapid Transit facility, a project outside Sports Kenya’s legal mandate.