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Mtwapa EPZ Limited v. Coast Apparel EPZ Limited &

(2018) JELR 98877 (CA)

Court of Appeal  •  Civil Application 65 of 2017 (UR 53/2017)  •  15 Feb 2018  •  Kenya

Alnashir Ramazanali Magan Visram, Martha Karambu Koome, Wanjiru Karanja



1. Mtwapa EPZ Limited (the applicant) and Coast Apparel EPZ Limited (the 1st respondent) entered into an agreement dated 17th November, 2017 wherein the appellant agreed to construct on its property, Plot No.MN/IV/875/1 a factory, an administrative office and residential blocks according to the 1st respondent’s specification. In order to construct this custom-made property for the benefit of the 1st respondent the applicant borrowed a sum of USD 1,900,000 from 1&M Bank Limited (the 2nd respondent) to partly finance the project which was worth more than Kshs.400,000,000. According to the applicant, it did so based on the agreement that the 1st respondent would lease the suit premises for a period of 10 years. As part of the agreement, the 2nd respondent provided an irrevocable guarantee of USD 522,599 issued by the 2nd respondent, in favour of the applicant being rent for the first year of the 10-year lease.

2. Somewhere along the line a dispute arose between the …

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