The first defense witness in the case between Kahama Oil Mills Limited and its affiliates against Equity Bank Tanzania Limited (EBT) and Equity Bank Kenya Limited (EBK) has concluded his testimony. The case, which involves a contested loan amounting to $46 million (over Sh122 billion), is being heard in the High Court’s Commercial Division in Dar es Salaam.
Michael John Kessy, a representative from EBT, completed his testimony on Monday, July 29, 2024. During his testimony, Kessy addressed various documents related to the loan and answered questions from both the plaintiff’s lawyer, Frank Mwalongo, and the defense lawyer, Zaharani Sinare.
The plaintiffs in this case include Kahama Oil Mills Limited and Kamahama Import & Export Commercial Agency Limited. They have brought the case against the banks, asserting that the banks are demanding repayment of funds that they claim were never borrowed or have already been repaid.
Additional plaintiffs in the case, numbered 78/2023, include the loan guarantors: Kom Group of Companies Limited, Shinyanga Royal Pharmacy (2015) Limited, Royal Supermarket (2008) Limited, and Mhoja Nkwabi Kabalo, the director of these companies.
The case is part of a series of legal actions involving these banks and companies, where the banks are being sued for billions in loans. The banks have countered these claims, arguing that the loans were indeed provided, and the borrowers have not repaid them.
The dispute arose after the banks sent letters demanding repayment of over $46.6 million (more than Sh122.54 billion) from the companies.
Presiding over the case, Judge Professor Agatho Ubena is currently overseeing the defense phase. The defense has begun presenting its evidence after the plaintiffs concluded their presentation.
In this stage, the banks, represented by lawyer Zaharani Sinare, are providing evidence to refute the plaintiffs’ claims and to substantiate their own allegations that the companies owe them the specified amounts.
According to Kessy, the claimed debt includes the principal loan amount of $32 million (over Sh84 billion) plus interest, which the banks assert was provided to the companies but remains unpaid.
During his testimony, Kessy elaborated on his initial written statements and provided documentation as evidence. He was guided through his testimony by lawyer Sinare and responded to questions from the plaintiffs’ lawyer, Mwalongo.
After answering the cross-examination questions, Kessy addressed additional clarifications with Sinare before concluding his testimony. He emphasized that the banks had indeed lent the money to the companies, which have failed to repay the loan.
Following Kessy’s conclusion, Sinare informed the court that a new witness will be presented to continue the defense on Tuesday, July 30, 2024.
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