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Mukua Tutuma v. Co-operative Bank of Kenya Ltd

(2008) JELR 98851 (CA)

Court of Appeal  •  Civil Appli. Nai 134 of 2008 (UR 86/2008)  •  17 Oct 2008  •  Kenya

Coram
Riaga Samuel Cornelius Omolo, Daniel Kennedy Sultani Aganyanya, John walter Onyango Otieno

Judgement

RULING OF THE COURT

Mukua Tutuma, the applicant in this application, by way of notice of motion dated 19th June 2008, was together with his two brothers, Alex Munene Tutuma and Raphael Kibiru Tutuma, trading under the firm name of Tutuma General Stores. Vide a letter dated 15th February 2001, addressed to Co-operative Merchant Bank Ltd, they applied for a loan of Ksh.10,000,000/= (ten million) from the same bank to enable them expand their business by building a new business premises and expanding their stock. They explained in subsequent letters to the same bank how they were going to repay the loan if granted. In a letter dated 2nd March 2001, the Bank made an offer of banking facilities limited to Kshs.10,000,000/= at interest rate of 6% above base rate, which base rate was then 20% p.a. The loan was guaranteed by the three brothers and the applicant’s land L.R. No. 209/9692 was charged as security for the loan. There is evidence on record that the entire loan was disbursed. In the …

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