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Kenyan businessman Julius Mwale, founder of Mwale Medical and Technology City (MMTC), has been ordered by the High Court to deposit $132,400 in court as he prepares to appeal a judgment against him over a road construction dispute. The ruling requires the US-based entrepreneur to make the deposit within 30 days, effectively pausing Sifatronix Limited’s effort to recover Ksh17.1 million ($132,400) pending the appeal.
Sifatronix had won the case in February, claiming that Mwale and his company Tumaz and Tumaz Ltd., failed to pay for murram supplied for a six-kilometer road at MMTC in 2019. Mwale, dissatisfied with the decision, returned to the High Court to seek a suspension of the judgment until his appeal is heard. “I am satisfied that the matter warrants urgent attention. Accordingly, the application is certified as urgent,” the court noted.
Tumaz challenges Sifatronix over payment
Mwale argued that allowing the contractor to recover funds before the appeal would render the case an academic exercise. “The balance of convenience tilts in favour of preserving the status quo,” he said, noting that Sifatronix’s ability to refund the money with interest is uncertain, and recovering the funds prematurely could cause irreparable harm to him and his business.
Sifatronix originally sued Tumaz and Tumaz in July 2019, seeking Ksh30.6 million ($236,750) for the murram supply. Mwale countered, arguing that the contract was between Tumaz and Tumaz and Epic Agency Limited, which had already made payments. He explained that the post-dated cheques issued to Sifatronix were tied to confirmation of work completed and that Sifatronix had failed to start the road tarmacking as agreed.
Tumaz and Tumaz are now seeking reimbursement of $20,000 or a court order compelling the contractor to complete the project. The court acknowledged that Sifatronix delivered the murram and issued invoices but revised the amount due to Ksh17.1 million ($132,260), reflecting partial acknowledgment of the claim.
Mwale’s smart city shapes African futures
Julius Mwale has made a name for himself as a practical entrepreneur focused on healthcare and technology. MMTC, a $2 billion smart city in Butere, Kakamega County, provides modern healthcare, education and clean energy. It now spans 12 African countries, with plans for 18 smart cities across Africa by 2050, thus aiming to improve the lives of up to 800 million people.
His expansion includes deals with Zambia’s Industrial Development Corporation and a 2023 agreement for a medical city in Ghana. Similar projects are underway in Botswana, Congo and Sierra Leone, thus reflecting his commitment to transforming healthcare and infrastructure in Africa.
Earlier this year, Mwale also secured a legal victory in the United States after a federal court in New York dismissed a $1.7 million lawsuit against him and his wife, Kaila Mwale, filed by an American couple. The case was withdrawn shortly after moving from Utah, with the court citing New York as the proper venue under the loan agreement.
