TONONOKA STEELS LIMITED v EASTERN AND SOUTHERN AFRICATRADE AND DEVELOPMENT BANK [1999] KECA 3 (KLR)

Facts

The appellant, Tononoka Steels Limited, sought a loan from the respondent, the Eastern and Southern Africa Trade and Development Bank, to finance a steel manufacturing project in Kenya. The loan agreements were governed by English law, and the High Court had jurisdiction over the dispute.

Issues

1. Whether the High Court of Kenya has jurisdiction over the dispute
2. Whether the clause in the loan agreements that disputes should be judged by the tribunals of a particular country is binding

Reasoning

The court held that the clause in the loan agreements is not binding and that the right of access to the courts of Kenya may only be taken away by clear and unambiguous words of the Parliament of Kenya.

Outcome

Appeal Succeeds

Authorities cited