[2025] KEHC 7835 (KLR)

[2025] KEHC 7835 (KLR)

The court found that the appellant, while a guarantor, had in fact benefited from the loan proceeds, as part of the funds were credited to his account and some were allegedly transmitted in cash. The court agreed with the lower court that the appellant's denial of benefiting from the loan was not credible. Applying...

Source-derived case information.

Citation
[2025] KEHC 7835 (KLR)
Parties
Appellant: Gedion Muriithi Gicimu; Respondent: John Kiam Miano
Court
High Court
Court Station
High Court at Kerugoya
Jurisdiction
Kenya
Judgment Date
5 June 2025
Case Number
Civil Appeal E117 of 2022
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal dismissed
Judges
JK Ng'arng'ar
Legal Topics
Guarantee Liability, Collateral Security, Burden of Proof, Privity of Contract
Source Language
english
Civil Procedure Banking and Finance Guarantee Liability Collateral Security Burden of Proof Privity of Contract

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Summary, issues, holding and outcome

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Parties

Gedion Muriithi Gicimu

Appellant

John Kiam Miano

Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the appellant, as guarantor, was liable for the outstanding loan amount after the respondent defaulted.
  2. 2 Whether the appellant benefited from the loan proceeds and thus bore liability.
  3. 3 Whether the lower court erred in its application of the burden of proof and privity of contract.

Ratio Decidendi

The court found that the appellant, while a guarantor, had in fact benefited from the loan proceeds, as part of the funds were credited to his account and some were allegedly transmitted in cash. The court agreed with the lower court that the appellant's denial of benefiting from the loan was not credible. Applying the principle of balance of probabilities, the court held that the appellant failed to discharge the burden of proof to show he did not benefit from the loan. The court further held that privity of contract did not shield the appellant from liability since he was found to have received part of the loan proceeds. Consequently, the appeal lacked merit and was dismissed with costs...

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed with costs to the respondent.