A constitutional petition filed at the High Court in Kiambu is seeking far reaching reforms in Kenya’s banking sector, with petitioner Francis Awino accusing regulators and commercial banks of operating a lending system that unfairly burdens borrowers, weakens consumer protections and benefits financial institutions at the expense of ordinary Kenyans.
In the petition lodged before the Constitutional and Human Rights Division, Awino names the Central Bank of Kenya (CBK), the Cabinet Secretary for National Treasury and Economic Planning, the Kenya Bankers Association (KBA) and the Attorney General as respondents, arguing that the prevailing banking model violates constitutional protections on fairness, accountability, access to information and consumer rights.
The case, filed as Constitutional Petition No. E045 of 2026, has been placed before Justice Bahati Mwamuye, who directed that the respondents be served with the petition, application and supporting documents, with responses expected by June 12, 2026. The matter is scheduled for mention on July 2, 2026 to confirm compliance and issue further directions.
At the centre of the petition is Awino’s argument that commercial banks continue to impose opaque loan-pricing systems, unilateral interest adjustments and contractual terms that disproportionately disadvantage consumers while maintaining strong profitability. He contends that many loan agreements permit banks to revise lending rates, impose additional charges and restructure repayment obligations without meaningful negotiation or adequate disclosure to borrowers.
Awino further argues that although the banking sector remains profitable and well-capitalised, private sector borrowers continue facing costly credit, elevated non-performing loan burdens and limited access to affordable financing. The petition references financial disclosures from major banks and banking sector reports to argue that strong profits have not translated into fairer lending terms for consumers and small businesses.
Among the constitutional issues raised are alleged violations of Articles 10, 35, 40, 43, 46 and 47 of the Constitution, with the petitioner claiming that consumers are denied adequate information on loan pricing, repricing mechanisms, interest rate variations and enforcement practices. He further alleges that the continued reliance on standard-form contracts leaves borrowers vulnerable to punitive lending conditions and weak bargaining power.
The petition also questions what Awino describes as a disproportionate preference by banks for government securities over private sector lending, arguing that the trend limits access to affordable credit for households, businesses and mortgage holders despite public monetary policy interventions intended to stimulate lending.
Through the case, Awino is seeking several declarations and court orders, including a finding that aspects of the prevailing banking sector model are unconstitutional, unlawful and inconsistent with public interest obligations. He is also asking the court to compel regulatory reforms on lending transparency, disclosure requirements, borrower protection safeguards and the publication of fair loan pricing frameworks.
In interim applications before the court, the petitioner has further sought conservatory reliefs aimed at restraining the continued implementation of disputed lending practices pending determination of the matter.
The case is expected to attract significant public attention as it touches on issues affecting borrowers, depositors, mortgage holders, small businesses and the wider cost of credit in Kenya.
