EASTLANDS THEATRES LIMITED,JAMES SAMUEL KINYANJUI & ANN NJERI KINYANJUI V. KENYA NATIONAL CAPITAL CORPORATION LIMITED

JUDGMENT OF THE COURT

1. The respondent’s claim against the appellants in its amended plaint was for Kshs. 23,978,096.30 with interest at the rate of 18% per annum on account of moneys advanced to the 1^st appellant sometimes in 1981. The said sum was secured by a charge over a parcel of land known as L.R. No. 209/8155 that was owned by the 1^st appellant.

2. By two continuing guarantees and indemnity dated 2^nd March, 1981 executed by the 2^nd and 3^rd appellants, the two guarantors guaranteed and bound themselves jointly and severally to repay to the respondent on demand upto a maximum of Kshs.7 million together with interest of any sum of money which the 1^st appellant would be liable to pay to the respondent.

3. The 1^st appellant defaulted in the loan repayment. Consequently, on 11^th February 1983 the respondent sent out a demand letter to the 2^nd and 3^rd respondents asking the guarantors to pay the guaranteed sums together with interest thereon at the rate of 16% per annum.

4. The responde…