A court has faulted the Kenya Development Corporation (KDC) for compounding interest charges on a loan tapped by a businessman (now deceased) and also imposing interest on penalties, terming it illegal and in breach of the Banking Act.
The High Court said that a lender, formerly known as Industrial and Commercial Development Corporation (ICDC), is not permitted to recover more than the principal and outstanding interest at the date the loan was first declared as non-performing.
