JUDGEMENT OF THE COURT
:Pursuant to a letter dated 14th April, 1988 addressed by the appellant to and accepted by the respondent, the appellant at the request of the respondent afforded the latter financial facilities in form of a bills discounting facility to a maximum of Kshs. 2 million. Between them, it was agreed that the interest rate to be charged on this facility would be 18% per annum subject to change by the appellant at its sole discretion without notice, provided that such interest rate would not exceed the maximum rate chargeable as laid down by the Central Bank of Kenya. Subsequent thereto, the respondent’s property known as L.R. NO. 7752/95 (Original No.7752/32/1) and situate at Kyuna Estate, Nairobi, hereinafter called the suit property, was on 26th April, 1998 charged to the appellant to secure the financial facility referred to above.
During the year 1989,the respondent became increasingly unable to honour the discounted bills as and when they matured and in September, …