Q: A Muslim bakery sold bread on credit fifty years ago valued at Kenyan Shillings 6500/-, and the price of loaf was KShs 0.75 (75 cents). At that time the debtor had failed to pay. Now his kin want to settle the debt when the price of a loaf is KShs. 50/- and is ready to pay extra over the 6500/- owed. Can the Bakery demand to be paid according to the current price of a loaf of bread? Or can they accept the initial debt of KShs. 6500/- plus the extra the debtor is willing to pay seeing the difference of the cost of loaf today and fifty years ago? As the actual currency is gold, can the debt be evaluated according to the price of gold fifty years ago and now, i.e., the amount of gold that could have been bought of KShs 6500/- fifty years ago and the value of the same weight of gold at the current local market be the repayable debt? The owner of the bakery (now run by his children) died many years ago. Please advise.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)