Court orders Jie County MP to pay sh335m loan
In a judgment dated March 30, 2026, Justice Stephen Mubiru ruled that the legislator failed to honour the terms of the contract and ordered him to settle the outstanding amount.
Court orders Jie County MP to pay sh335m loan
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The Commercial Court has ordered Jie County MP, Peter Abrahams Lokii, to pay shillings 335 million to money lender Jain Amit after finding that he breached a loan agreement.
In a judgment dated March 30, 2026, Justice Stephen Mubiru ruled that the legislator failed to honour the terms of the contract and ordered him to settle the outstanding amount.
The court also directed that the sum will attract interest at a contractual rate of 24% per annum from September 4, 2014, the date the suit was filed, until full payment is made, in addition to costs of the suit.
Justice Mubiru noted that under the loan agreement, Lokii had borrowed shillings 265 million, which was to be repaid within nine months, by June 22, 2013, at an interest rate of 2% per month.
“The legislator failed to meet these obligations and did not present any valid justification for the default,” he said.
Court records indicate that by September 2018, only 91.8 million shillings had been recovered from the borrower.
The judge explained that a breach of contract arises when a party fails, refuses, or neglects to fulfil agreed obligations without a lawful excuse.
He added that awarding interest helps restore the lender to the financial position they would have been in if the breach had not occurred.
The court further found that the agreed interest rate of 24% per annum between the parties was lawful, as it falls within the limits set by the Tier 4 Microfinance Institutions and Money Lenders Regulations, which cap interest at 2.8% per month or 33.6% annually.
According to court documents, the loan agreement was signed on September 22, 2012. As security, Lokii pledged the logbook of his Mitsubishi Fuso Fighter truck, registration number UAP 540 Z.
He later issued two cheques of shillings 20 million each in January 2014, but both were dishonoured upon presentation to the bank. Following continued default, the money lender filed suit seeking recovery of shillings 335 million, along with interest and legal costs.