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In Z.A.S. Investment Company Limited and 5 Others v Equity Bank Tanzania Limited and Equity Bank Kenya Limited, Civil Appeal No. 1321 of 2024, the Court of Appeal (CoA) of Tanzania dismissed an appeal by a borrower and its guarantors against a judgment of the High Court (Commercial Division). Judgment was delivered on 22 September 2026.
23 October 26
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The Court held that a letter of credit issued under the ICC Uniform Customs and Practice for Documentary Credits (UCP 600) is independent of the underlying contract. It also held that a borrower who received the benefit of a foreign loan cannot avoid repaying a bank by claiming that the foreign loan was illegal. The decision gives banks clear guidance on documenting and enforcing trade finance and restructured facilities.
In this legal alert, we analyse the decision and its practical implications for banks.
Click here to download and read the full alert.
Should you have any questions regarding the information in this publication, please do not hesitate to contact Yassin Maka.
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Contributor
Emmanuel Mallya – Intern