JUDGMENT
On the 17th October, 1987, Lion of Kenya Insurance Company Ltd, the respondent hereinafter, filed a suit against Octagon Private Investigations and Security Services, the appellant, claiming from the latter the sum of Shs 913,781/- together with interest thereon and costs. The claim was filed in the High Court at Eldoret. The respondent is an insurance company and the appellant who was simply described in the plaint as “a business concern carrying on its business in the Republic of Kenya” appears to be some kind of a security firm. The appellant had a transportation agreement with the then Bank of Credit and Commerce (Overseas) International Ltd, the bank, and under that agreement the appellant used to carry the bank’s money from Eldoret to Kisumu. The respondent, under a separate agreement with the bank, provided insurance cover for the money so being transported.
It was alleged in the plaint that on the 15th May, 1987, the bank entrusted to the appellant the sum of Shs 3,860,…