In a ruling that reads more like a crime thriller than a court transcript, Malawi’s High Court has declared illegal the unholy trinity of katapila lending, extortionist interest rates, and the growing trend of hiring street muscle to squeeze debts out of the desperate like juice from a lemon
Justice Trouble Kalua of the Commercial Division minced no words this week as he presided over a case that spotlighted both shady lending and even shadier collection tactics. At the centre of the drama was a family feud turned courtroom brawl: Joana Phiri sued her own uncle, Smith Kamwangala, claiming he owed her a jaw-dropping K15.75 million from a series of high-interest loans starting in 2021.
What began as a K3 million loan with a 50% two-month interest ballooned into a complex web of additional loans, partial repayments, midnight visits from so-called “debt collectors,” and even car seizures. The court heard that Kamwangala repaid over K9 million, not to mention surrendering a Mercedes Benz, and yet, the loan somehow kept growing—like a weed that thrives in darkness.
But what truly shocked the courtroom was the claimant’s tactics: when Kamwangala hesitated to pay more, musclemen were allegedly sent to his home to harass his wife, seize vehicles (including one she didn’t own), and force him to sign agreements under duress. “He thought the matter was closed. But he thought wrong,” the judgment noted with a hint of courtroom sarcasm rarely seen in black robes.
Justice Kalua compared katapila to a wolf in designer clothing: “Dressed in a promissory note three-piece suit. Complete with a matching pocket square and silk necktie.” But strip away the linen and what remains is plain, predatory lending—cloaked in civility but dripping with exploitation.
Kalua was equally scathing about the use of mercenaries, saying “this is mob (in)justice” and a blatant violation of the law. He reminded the public that debt recovery is strictly a legal process, not a playground for roadside gangsters or in-laws moonlighting as bounty hunters.
Quoting the Loans Recovery Act, the judge ruled that the interest rates charged were “harsh, excessive, and unconscionable,” and declared the debt fully settled. As for the amateur enforcers, Kalua warned that debt collection for gain without a legal license could earn one a long stay behind bars—not just a slap on the wrist.
In a country where katapila is as common as rain in December, this judgment is both a legal landmark and a moral wake-up call. The High Court has spoken: if you want to lend money, do it lawfully; and if you want to collect it, leave your goons at home—and hire a lawyer instead.
