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National Bank of Kenya Limited v Insurance Experts (K) Ltd (Civil Appeal 226 of 2016) [2022] KECA 141 (KLR) (18 February 2022) (Judgment)

[2022] KECA 141 (KLR) Court of Appeal
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Court
Court of Appeal
Case number
141
Citation
[2022] KECA 141 (KLR)
Decided
18 February 2022
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeAppealPostureSecond appeal from the judgment of the High Court of Kenya at NairobiCoramW. KARANJA, D. K. MUSINGA, F. SICHALE
Holding

The Court finds that there was no privity of contract between the appellant and the respondent, and therefore, the appellant is not liable to pay the sum of Kshs.530,000.

Facts

National Bank of Kenya Limited sued Insurance Experts (K) Ltd for a sum of Kshs.530,000 in excess insurance premium allegedly paid by the respondent to United Insurance Company Limited for and on behalf of Kenya Taxi Cab Association.

Issues

  1. existence of privity of contract between the appellant and the respondent
  2. liability of the appellant to pay the sum of Kshs.530,000

Reasoning

The Court reviewed the correspondence between the parties and concluded that there was no privity of contract, as the appellant was not a party to the consideration of the contract.

Outcome

The appeal is allowed, and the judgment of the High Court is set aside. The appellant is not liable to pay the sum of Kshs.530,000.

Orders

  • Set aside the judgment of the High Court and enter judgment in favor of the respondent in the sum of Kshs.530,000.
  • Award costs of the appeal and of the suit before the trial court to the appellant.

Authorities cited

Cases cited (4)
  • Black's Law Dictionary
  • Halsbury's Law of England
  • Agricultural Finance Corporation v Lengetia Limited & Jack Mwangi
  • Savings & Loan (K) Limited v Kanyenje Karangaita Gakombe & Another
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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