The High Court has set aside a Sh10.8 million legal costs award previously granted to Kenya Commercial Bank (KCB) and Metropol Credit Reference Bureau in a long-running dispute over an alleged wrongful credit listing. The ruling found that the taxing officer wrongly based instruction fees on an inflated suit value.
According to a Business Daily report of 8 September 2026, the court found the costs were based on a pleaded claim value of about Sh191 million that included disputed loan figures and unproved special damages. KCB’s bill had been assessed at Sh7.7 million and Metropol’s at Sh3.1 million. Both bills were ordered to be assessed afresh by a new taxing officer.
The ruling follows the 2023 judgment that dismissed the borrower’s case against KCB and Metropol and ordered him to pay their costs.
Background: The Original Dispute
The case, Mutyaene v Metropol Credit Reference Bureau Ltd & another (Civil Case 47 of 2016) [2023] KEHC 20764 (KLR), was brought by Reuben Kioko Mutyaene. He sued Metropol CRB and KCB after being listed as a loan defaulter on the bureau’s database.
Mutyaene argued that the two non-performing loan accounts used to justify the listing had been settled and deleted as early as August 21, 2015. He claimed the outdated listing damaged his creditworthiness and sought substantial damages.
In the July 2023 judgment by Justice H.K. Chemitei, the High Court found that the defendants had acted within their statutory duties and in good faith once notified. The special damages claim was not strictly proved. The suit was dismissed with costs to the defendants.
KCB and Metropol later sought taxation of those costs. A taxing officer awarded them approximately Sh10.8 million. Mutyaene successfully challenged that taxation, leading to the latest High Court decision that set the award aside and ordered fresh assessment.
Why the Costs Award Was Overturned
The court identified these main problems with the taxation:
- The suit value used for instruction fees included facilities that had already been closed years earlier.
- Unproved special damages could not properly inflate the value of the suit.
- The taxing officer relied on the plaintiff’s pleadings instead of examining the full record and the issues that were actually contested and determined.
Under the Advocates Remuneration Order, instruction fees must reflect the true subject matter of the dispute as determined by the court, not the highest figure a plaintiff chooses to plead.
What Borrowers Should Know: CRB Protections Under CBK Rules
The dispute highlights ongoing tension between banks, credit bureaus and consumers over negative listings. The Banking (Credit Reference Bureau) Regulations, 2020 (Legal Notice 55 of 2020) set clear safeguards:
- 30-day pre-listing notice – A lender must give written notice at least 30 days before submitting negative information to a CRB (or a shorter period if the contract allows). Listing without proper notice can be challenged.
- Right to dispute and investigation timelines – A customer can dispute inaccurate information. The CRB must mark the entry as disputed, and the information provider must investigate and notify the CRB of the outcome within 21 days of receiving the dispute notice.
- Sh1,000 minimum threshold – Lenders should not submit negative information for defaults below Sh1,000.
- Credit score not the sole factor – A customer’s credit score should not be the sole basis for denying a credit facility; lenders should consider other relevant factors when making a credit decision (Regulation 40).
- Penalties and civil remedies – Banks remain responsible for the accuracy of data they submit. Wrongful or outdated listings can attract CBK penalties and civil claims for negligence or defamation where loss is proved.
Borrowers who discover an error should first write to the lender and the CRB, keep records, and escalate to the Central Bank of Kenya if the dispute is not resolved within the statutory timelines.
Related:Metropol CRB Kenya — Credit Reports, Scores & Clearance Certificate | Business Listings Kenya
Bottom Line
The High Court has cancelled a Sh10.8 million costs award that was calculated on an inflated and partly dismissed claim in the Mutyaene CRB dispute. The ruling reinforces that taxation of costs must track the real value of the issues determined, not the highest figure pleaded. Both bills have been sent back for fresh assessment by a new taxing officer.
For consumers, the case is a reminder of the protections already built into the CRB Regulations: mandatory notice, the right to dispute, and the duty on banks to keep listings accurate and up to date. Anyone facing a listing they believe is wrong should act quickly and document every step.
Sources:
Business Daily – Court cancels Sh10m legal costs award to KCB, Metropol (8 September 2026);
Mutyaene v Metropol Credit Reference Bureau Ltd & another (Civil Case 47 of 2016) [2023] KEHC 20764 (KLR);
Banking (Credit Reference Bureau) Regulations, 2020 (Legal Notice 55 of 2020);
CBK PDF of the Regulations.
Readers should consult the full court rulings and a qualified advocate for advice on any specific case. This article is for information only.