ECOBANK KENYA LIMITED V. BELL PACIFIC INTERNATIONAL LIMITED

JUDGMENT OF THE COURT

The appellant, EcoBank Limited, was aggrieved by the judgment of the High Court, (Sewe, J.) which found that the appellant was liable to pay the respondent, Bell Pacific International Limited a sum of Kshs. 34,378,836.90 together with interest being special damages for breach of contract. And for dismissing the appellant’s counterclaim after finding that it was without basis.

The facts are, after the respondent was awarded a tender for the supply of 10,000 metric tonnes of Urea Fertiliser by the Ministry of Agriculture the respondent entered into a supply contract dated 2^nd February 2009 (MoA supply contract) for a sum of US$ 3,392,000 with the Ministry. To ensure performance of the Ministry’s supply contract, the respondent secured a supply contract with Diamond Gate Trading LLC (DGGT) a Dubai based company for the supply of 10,000 metric tonnes of calcium ammonium nitrate fertiliser for the sum of US$ 2,750,000 (DGGT supply contract). As a condition for supply, …