JUDGMENT
The appellants, the Manchester Outfitters Suiting Ltd and Galot Industries, are limited liability companies incorporated and registered in Kenya and carrying on the business of manufacturing clothes and property developers respectively. The former is a subsidiary company of the latter hereinafter collectively referred to as “the borrowers” where the context so requires. The respondents are a prominent firm of advocates practicing law in Kenya and based in Nairobi.
The 1st appellant negotiated successfully a loan from the Standard Merchant Bank Ltd, (the London Bank), through the East Africa Acceptances Ltd; another company incorporated in Kenya, (The Acceptances), to the tune of 1.3 million Deutsche Marks and 1.05 million Swiss Francs. The loan was guaranteed by the Acceptances Ltd, hereinafter collectively referred to as “the lenders” where the context so requires. The names of the 1st appellant and Acceptances appear to have changed but nothing turns on this.
The respondents w…