Any bankers out there who can help? I took a loan to purchase a van but am now rethinking the idea. I want to sell the van midway through the loan repayment. The van is registered under both my name and the bank. Can i legally sell it and give the bank the balance from the sale to clear the loan balance? Your help will be much appreciated, thanks.

Read the early exit clause. You may have to pay the interest for the whole term!

I believe early repayment penalty is now outlawed under the recent consumer protection law?

Go to the bank with the buyer.

Get an undertaking from the bank for release of log book to the new buyer upon full settlement of the loan balance.

It should not take more than 24 hours to release logbook after loan repayment.

And yes hakuna penalty ya early repayment.

Am also wondering if there is any bank of finance institution that can finance a residential plot worthy 4 million.at the best rates .

From the Consumer Protection Act No.46 of
2012 (“CPA”) which came into effect pursuant to the
provisions of Article 46 of the Constitution

it is also in the constitution

Id duplum rule comes into play only when the loan is non performing. As long as the loan is classified as performing, you can pay in excess of 100% i.e. you can't take a ksh 100 loan and dutifully pay 25 cents per month as agreed with the bank and expect the interest not to exceed ksh 100.

2. The Amendment (Banking (Amendment) Act, 2006 (Act No 9 of 2006) section 17)
As already stated, the Banking (Amendment) Act introduced section 44A in the Banking Act (Banking Act, cap 488, Laws of Kenya) which is reproduced here. Section 44A Limit on interest recovered on defaulted loans:
"An institution shall be limited in what it may recover with respect to a non performing loan to the maximum amount under subsection (2).The maximum amount referred to in subsection (1) is the sum of the following: the principal owing when the loan becomes non-performing; interest, in accordance with the contract between the debtor and the institution, not exceeding the principal owing when the loan becomes non-performing; and expenses incurred in the recovery of any amounts owed by the debtor."
The above cited two subsections formulate what is known as the in duplum rule. It can be seen from paragraph (b) of subsection (2) that the amount of accrued interest on the loan is restricted to equal the amount of the principal amount owing when the loan becomes non-performing. In effect, therefore, the lender cannot recover at any one given time an amount that is more than double the outstanding principal.