NAIROBI, Kenya, May 24 – Kenyan tycoon Julius Mwale has scored a major legal victory after a U.S. federal court in the Southern District of New York dismissed a Sh220 million lawsuit filed against him and his wife, Kaila Mwale.
The case, brought by American plaintiffs Mathew and Brooke Shaw, was voluntarily withdrawn on May 23, 2025, just 11 days after it was transferred from a Utah court.
The plaintiffs had filed the suit in July 2024, alleging that they had lent Mwale funds in 2022 intended for his projects in the Democratic Republic of Congo and had been misled during the presentation of the $2 billion Mwale Medical and Technology City (MMTC) project in Kenya.
However, court filings revealed that both parties had previously reached a binding settlement in April 2023, which included a release agreement barring any future legal action.
In an earlier ruling on May 12, U.S. District Judge Ann Marie McIff Allen agreed with Mwale’s legal team that Utah lacked personal jurisdiction and transferred the matter to the Southern District of New York, as stipulated in the loan agreement between the parties.
Strikingly, the plaintiffs later concurred with the venue transfer, signaling that they had knowingly filed the case in the wrong court.
Following the transfer, the Shaws filed a voluntary dismissal, bringing an end to the case.
Mwale’s legal team, led by attorneys Jennifer Tomchak and Nicole Skolout, argued that the case was both frivolous and malicious, citing documentation of prior settlements negotiated with legal counsel on both sides.
“This lawsuit was a clear attempt to damage our client’s reputation through baseless claims that had already been resolved,” said a spokesperson for Mwale. “Justice has prevailed.”
Court documents highlighted that the Shaws had shared a draft lawsuit with Mwale in April 2023 but subsequently signed a loan modification and release agreement that fully settled the dispute. The release explicitly barred future legal claims related to the same matter.
Beyond the courtroom, the case offered a glimpse into Mwale’s extensive business ties in the U.S. Documents revealed partnerships between his MMTC solar power project and Elon Musk’s Tesla, as well as links with high-profile American figures including former U.S. ambassador Meg Whitman, former presidential candidate Mitt Romney, and artist Akon.
Despite the legal challenge, MMTC has continued to thrive. The Kenyan-based smart city hosted major investment events like the FESTAC Business Conference and the MMTC Marathon, which raised healthcare funds for low-income households.
The city also expanded its Hamptons Hospital model to Suriname and participated in the 2025 Milken Conference in Los Angeles, forging new international partnerships.
MMTC, a $2 billion sustainable metropolis in Butere, Kakamega County, is now operational and looking to replicate its model across 12 countries by 2050.
