NURU CHEMIST LIMITED & ANOTHER
V.
NATIONAL BANK OF KENYA

JUDGMENT OF THE COURT

In a plaint dated 31^st August 2001 and filed at the High Court of Kenya at Milimani on 4^th September 2001, the respondent in this appeal, National Bank of Kenya Limited (respondent) sued Nuru Chemists Limited and James Isaboke, the first and second appellants respectively, alleging as follows, inter alia:

“4. Sometimes in 1996, the plaintiff Bank took over all debts, liabilities, obligations and duties of Standard Chartered Bank Kenya Limited, Kisii Branch.

5. The 1^st defendant maintains and operates a current account and a loan account with the plaintiff Bank.

6. By an agreement dated 16^th August 1993, the 1^st defendant applied for and was granted a loan of Kshs.2,000,000/= by Standard Chattered Bank Kenya Limited, Kisii Branch.

7. It was a term inter alia of the said agreement that the said:

(a) Sum would accrue interest at the rate of 37% per annum.

(b) Sum would be repaid on demand at any time at the Banks discretion.

8. By an instrument of guarantee and indemnity da…