JUDGMENT
The appellants are husband and wife respectively. The first appellant (Mr Gakere) applied for loan facilities from the respondent bank (“the bank”) in May, 1978 to the extent of Kshs 195,000/=. Negotiations between Mr Gakere and the bank resulted in the bank writing to Mr Gakere on 30th May, 1978 confirming the bank’s willingness to sanction a loan facility to the extent of Kshs 136,000/=. The bank stated that as security for such proposed loan its Uchumi Branch had first legal charge for Shs 10,000/= over a property known as Kiambaa / Ruaka / T14.
Additionally the bank sought first legal charges over properties known as LR 209/7383/278 (Kimathi Estate) and LR No LOC 15/Mugeka / 530 /13.
In its said letter of offer the bank stated as follows to Mr Gakere:
“You may rely on this facility being available to you for the time agreed upon provided there is no alteration as to the conditions as at present prevailing.”
Mr Gakere by his letter of 12th June, 1978 (written on letterhead of ‘…