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Kenya Tourist Development Corporation v. Sundowner Lodge Limited

(2018) JELR 99903 (CA)

Court of Appeal  •  Civil Appeal 120 of 2017  •  28 Sep 2018  •  Kenya

William Ouko, Patrick Omwenga Kiage, Agnes Kalekye Murgor



The sole issue that falls for our determination in this appeal is whether, as contended by the appellant, the High Court (E.K. Ogola, J.) erred in awarding Kshs. 30 million general damages to the respondent for breach of contract or, as the latter contends in its cross-appeal, such damages were payable but ought to have been a lot higher.

The dispute between the parties was triggered by the appellant’s unilateral withdrawal on 18th January 1999 of a letter of offer dated 19th April 1996 by which it had agreed to grant the respondent a Kshs. 15 million loan for the construction of a Two-Star Hotel in Nakuru to be eponymously named. Whereas the respondent pleaded and maintained that the withdrawal was unwarranted and amounted to a breach of contract which caused it to suffer much loss and damage in the form of opportunity costs and loss of business profits hence the claim for a total of Kshs. 421,760,000, the appellant contended that the respondent brought that event…

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