Kenya Case Law

I & M Bank Limited v Kabew Kenya Limited & 2 others

I & M Bank Limited v Kabew Kenya Limited & 2 others [2025] KEHC 8905 (KLR)

Court

High Court

Case number

Civil Suit 193 of 2018

Judge

FG Mugambi

The court found that the plaintiff bank had established, on a balance of probabilities, that it advanced various credit facilities to the 1st defendant, which were secured by guarantees from the 2nd and 3rd defendants and debentures over the 1st defendant's assets. The defendants admitted receipt of the facilities but failed to adduce evidence to rebut the plaintiff's claim or substantiate their allegation that the bank failed to account for repossessed assets. The court held that the liability of the 2nd and 3rd defendants as guarantors was joint and several but limited to the guaranteed sum…

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• Loan Default
• Guarantee Liability
• Debenture Security
• Joint And Several Liability
• Recovery Of Debt

I&M Bank Kenya Limited & another v Synergy Industrial Credit Limited & 2 others

I&M Bank Kenya Limited & another v Synergy Industrial Credit Limited & 2 others [2024] KECA 855 (KLR)

Court

Court of Appeal

Case number

Civil Appeal E758 of 2021

Judges

PO Kiage, LA Achode, PM Gachoka

The Court of Appeal held that the appeals were moot because execution of the decree against the suit property was completed upon registration of the prohibitory order, in accordance with Order 22 Rule 48 of the Civil Procedure Rules. On the merits, the Court found that the Bank did not establish a valid legal interest in the suit property, as the debenture did not cover it and was created after Synergy's rights had crystallized. The administration of Cape Holdings was found to be a collusive and bad faith attempt to frustrate execution of a lawful decree, not a genuine insolvency process. The…

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• Insolvency Administration
• Priority Of Creditors
• Execution Of Decrees
• Debenture Security
• Fraudulent Transactions
• Judicial Discretion

I & M Bank Limited v Shani Active Limited & 2 others

I & M Bank Limited v Shani Active Limited & 2 others [2022] KEHC 11962 (KLR)

Court

High Court

Case number

Civil Case 401 of 2018

Judge

WA Okwany

The High Court found the bank had proved debt against the borrower and held the guarantors potentially liable, but directed updated statements before final orders.

• Loan Guarantees
• Debenture Security
• Joint And Several Liability
• Guarantor Liability
• Debt Recovery
• Contractual Obligations

Guaranty Trust Bank (Kenya) Limited & Mechanized Cargo Systems Limited v Jagdeep Lalji Kotedia & Nilesh Jayantilal Kotedia

Guaranty Trust Bank (Kenya) Limited & Mechanized Cargo Systems Limited v Jagdeep Lalji Kotedia & Nilesh Jayantilal Kotedia [2020] KEHC 1273 (KLR)

Court

High Court

Case number

Civil Case 638 & 383 of 2005

Judge

F Tuiyott

The court found that the Bank's claim was not statute barred because the debenture and guarantees remained valid and undischarged. The 1st and 2nd Defendants, as directors and guarantors, executed the relevant letters of offer and guarantees with full knowledge of their implications, and could not claim lack of consent or consideration. Although the Bank breached Section 44 of the Banking Act by increasing interest rates without ministerial approval, subsequent restructuring and admissions by the borrower and guarantors estopped them from relying on those breaches. Allegations of further brea…

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• Loan Facilities
• Guarantees And Indemnities
• Interest Rate Regulation
• Debenture Security
• Statute Of Limitations
• Advocate Client Costs

Automotive Solutions (Nairobi) Ltd v Business Partners International (K) Ltd

Automotive Solutions (Nairobi) Ltd v Business Partners International (K) Ltd [2017] KEHC 10015 (KLR)

Court

High Court

Case number

Civil Case 328 of 2016

Judge

GL Nzioka

The High Court declined an injunction in a loan-enforcement dispute, finding the main issue was accounts. It ordered the lender to furnish updated accounts.

• Loan Enforcement
• Debenture Security
• Injunctive Relief
• Accounting Orders
• Royalty Agreements
• Injunctive-relief

Associated Construction Company (K) Limited v Spire Bank Limited (Formerly Equatorial Commercial Bank Ltd)

Associated Construction Company (K) Limited v Spire Bank Limited (Formerly Equatorial Commercial Bank Ltd) [2016] KEHC 8677 (KLR)

Court

High Court

Case number

Civil Case 394 of 2016

Judge

OA Sewe

The court found that the plaintiff admitted to owing the defendant a substantial sum under a loan facility secured by a debenture, and had not fully repaid the debt. While the plaintiff claimed to have receivables and had made some payments, it failed to provide a concrete proposal for repayment or evidence of utmost good faith. The court held that the plaintiff did not demonstrate a prima facie case with a probability of success, as required for the grant of an interlocutory injunction. Furthermore, the court noted that disputes over accounts do not justify injunctive relief, and the plainti…

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• Interlocutory Injunctions
• Loan Default
• Debenture Security
• Statement Of Account
• Prima Facie Case

National Bank of Kenya Ltd v Mweta Company Limited, Martha C Towett & William C Towett

National Bank of Kenya Ltd v Mweta Company Limited, Martha C Towett & William C Towett [2015] KEHC 900 (KLR)

Court

High Court

Case number

Civil Case 500 of 1996

Judge

JK Mulwa

The High Court held the defendants liable for an overdraft debt secured by debenture and guarantees, rejected misrepresentation, and applied the contractual interest rate.

• Loan Advances
• Guarantees And Indemnities
• Debenture Security
• Interest Rates
• Misrepresentation
• Contractual Liability

AKIBA BANK LIMITED v AMINA GHAFUR HAJI, ABDUL GHAFUR HAJI & ABDUL RAHIM ISMAIL

AKIBA BANK LIMITED v AMINA GHAFUR HAJI, ABDUL GHAFUR HAJI & ABDUL RAHIM ISMAIL [2010] KEHC 3608 (KLR)

Court

High Court

Case number

Civil Case 511 of 2004

Judge

FI Koome

The High Court found the defendants liable under guarantees they signed for a company loan and entered judgment for the bank, with costs and interest.

• Loan Guarantees
• Director Liability
• Default On Loans
• Debenture Security
• Loan-guarantees
• Director-liability

GROFIN EAST AFRICA FUND (GEAF) LLC v KIANJAMBA TRANSPORTERS CO. LTD.

GROFIN EAST AFRICA FUND (GEAF) LLC v KIANJAMBA TRANSPORTERS CO. LTD. [2009] KEHC 1688 (KLR)

Court

High Court

Case number

Civil Case 281 of 2009

The High Court declined to restrain disposal of secured vehicles, holding that the lender’s remedy lay under the debenture and not an interlocutory injunction.

• Loan Enforcement
• Debenture Security
• Interlocutory Injunctions
• Default And Repossession
• Loan-enforcement
• Debenture-security

UNEECO PAPER PRODUCTS LTD v MULTI OPTIONS LIMITED

UNEECO PAPER PRODUCTS LTD v MULTI OPTIONS LIMITED [2009] KEHC 3560 (KLR)

Court

High Court

Case number

Civil Suit 9 of 2006

The High Court lifted attachment over property claimed by Ecobank Kenya Limited, holding the secured creditor’s debenture and receiver appointment gave it priority over an unsecured creditor.

• Objector Proceedings
• Debenture Security
• Priority Of Creditors
• Attachment Of Property
• Objector-proceedings
• Debenture-security