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Court of AppealPartially AllowedCivil Appeal (from HCCC No. 468 of 2009)· [2025] KECA 271 (KLR)

Nation Media Group v Ezemak Refrigeration & Contractors Ltd

Court of Appeal
21 February 2025
6,079 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal threw out a contractor's Kshs.3.2 million claim against Nation Media Group, ruling the contractor breached the contract by installing different chillers without written approval.

What this practically means

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Executive summary

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This was a first appeal against the High Court (Makau, J.) judgment of October 4, 2018 in HCCC No. 468 of 2009, which had awarded the respondent (Ezemark Consultants Limited) Kshs.3,273,374, with costs and interest, for specific performance of a contract to install an air conditioning and chiller system at the appellant's (Nation Media Group's) premises. The trial court had found the appellant estopped from denying approval of the substitution of Carrier chillers with Dric chillers, and found the appellant in breach of consultants' recommendations that both parties had agreed to be bound by. The Court of Appeal, per a unanimous bench of Musinga, Asike-Makhandia and Ali-Aroni, JJ.A., identified three issues: approval of the model change, applicability of estoppel, and whether any monies were owed. The Court found the respondent's claim of written authorization a falsehood never substantiated, and its later claim of verbal authorization unproved and dishonest; no permission, oral or written, was obtained, so the breach was the respondent's. Estoppel did not apply because the appellant's position was constant and it queried the variation immediately. As to monies, the respondent had accepted a cheque of Kshs.4,149,517 in full and final settlement, offered only a 10-year warranty against the recommended 15, and its work was below par per the unchallenged consultants' report. No unjust enrichment arose as the appellant had paid for the plant. The appeal was allowed, the High Court judgment set aside, the suit dismissed with costs to the appellant, who also received the costs of the appeal.

Key legal issues

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01

Whether the appellant authorized the change of chiller model from Carrier to Dric

Holding

No authorization, written or oral, was proved; the respondent unilaterally breached the contract by installing Dric chillers.

Reasoning

The respondent consistently alleged written authorization but never produced it, despite undertakings to do so in meetings, correspondence, and the plaint. When that narrative failed, it shifted to claiming verbal authorization from the appellant's resident engineer, who was not called to testify. The Court found the changed narrative smacked of dishonesty, that the variation went to the core of the contract, and that the engineer was at most informed of, not consulted on, the change.

p. 10
02

Whether estoppel applied against the appellant

Holding

Estoppel was inapplicable; the appellant's position was constant, it queried the variation immediately, and it was the respondent who fraudulently held out that authority had been granted.

Reasoning

The Court found no acquiescence by the appellant: upon noticing the variation it made inquiries and engaged consultants. The respondent could not show any change of position to its detriment. The trial court's contrary finding was erroneous because it rested on meetings which did not in fact amount to approval.

p. 11
03

Whether the appellant owed the respondent any monies

Holding

No further monies were owed; the cheque of Kshs.4,149,517 accepted as full and final settlement covered the work done, and the respondent was itself the breaching party.

Reasoning

The consultants' unchallenged report valued work on the ground at Kshs.9,653,955.69 excluding VAT, found the work below par (old pumps, unrepaired/old control panel, uninsulated pipes, non-ISO-approved chillers with a refrigerant to be banned by 2030), and recommended a 15-year warranty which the respondent did not offer. The respondent accepted a final payment and signed away any further claim. A counterclaim could have been sustained against it.

p. 11

Legal principles established

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  • On a first appeal, the Court of Appeal must reconsider and evaluate the evidence afresh and draw its own conclusions, while making due allowance for not having seen or heard the witnesses; it is not bound by the trial judge's findings of fact.
  • Estoppel cannot be founded on conduct where the party asserting it gave no reliance-changing position; a party who unilaterally varies a material term of a contract without authorization cannot invoke estoppel against the innocent party.
  • A material variation of a contract must be agreed between the principals and reduced into writing; an unproved, casual oral variation by staff does not bind a party.

Court orders

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  1. 1.Appeal allowed
  2. 2.Judgment and decree of the High Court set aside
  3. 3.Respondent's suit in the High Court dismissed
  4. 4.Respondent to pay appellant's costs of the High Court suit
  5. 5.Appellant to have the costs of this appeal
On appeal from
High Court
HCCC No. 468 of 2009
Jurisdiction invoked
First appeal to the Court of Appeal under its appellate jurisdiction (Article 164 of the Constitution invoked implicitly; judgment states 'This is a first appeal')

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Nation Media Group v Ezemak Refrigeration & Contractors Ltd", Case Analysis (2025). Civil Appeal (from HCCC No. 468 of 2009). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/271/eng@2025-02-21

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.