Kenyan businessman Julius Mwale cleared as U.S. court dismisses $1.7 million lawsuit

Key Points

• Kenyan businessman Julius Mwale won a $1.7 million U.S. lawsuit after a New York court ruled Utah lacked jurisdiction.
• Lawsuit dropped due to a 2023 loan settlement barring future claims, ending a dispute over MMTC funding allegations.
• Mwale’s $2 billion MMTC plans 18 African smart cities by 2050, expanding healthcare, tech, and infrastructure with recent deals in Zambia and Ghana.

Kenyan businessman Julius Mwale, the visionary founder of  Mwale Medical and Technology City (MMTC), has won a major legal battle in the United States after a federal court in New York dismissed a $1.7 million lawsuit brought against him and his wife, Kaila Mwale.

Lawsuit dropped after jurisdiction ruling

The lawsuit, filed by American couple Mathew and Brooke Shaw, was withdrawn on May 23, 2025, just 11 days after it was moved from a court in Utah to the Southern District of New York. Earlier, on May 12, U.S. District Judge Ann Marie McIff Allen ruled that the Utah court didn’t have jurisdiction over Mwale, aligning with the terms of a loan agreement between the parties that specified New York as the proper venue.

Once the case was transferred, the Shaws dropped the lawsuit altogether. Their withdrawal effectively ended the dispute. Mwale’s lawyers, Jennifer Tomchak and Nicole Skolout, said the case had no legal standing and accused the plaintiffs of trying to tarnish their client’s name. “This lawsuit was a clear attempt to damage our client’s reputation through baseless claims that had already been resolved,” a spokesperson for Mwale said. “Justice has prevailed.”

Court cites binding 2023 agreement

Court documents showed that the Shaws had initially drafted a lawsuit in April 2023 but later signed a loan modification and release agreement that resolved the issue in full. That agreement also barred any future legal claims related to the matter.

The Shaws had claimed they loaned Mwale money in 2022 for business ventures in the Democratic Republic of Congo and alleged they were misled during discussions around the $2 billion MMTC project in Kenya. However, the courts found that a binding settlement had already been reached in April 2023, including a clause that prevented any further legal action.

While the case has now been laid to rest, it shed light on Mwale’s business connections in the United States. Documents revealed collaborations between MMTC’s solar power initiative and Tesla, and connections to notable American figures such as former U.S. ambassador Meg Whitman, former presidential candidate Mitt Romney, and artist-entrepreneur Akon.

Julius Mwale’s MMTC plans 18 cities by 2050

Julius Mwale has built a name for himself as an entrepreneur with bold ideas and a practical approach to solving big challenges. He is the driving force behind Mwale Medical and Technology City (MMTC), a $2 billion smart city focused on healthcare and technology in Butere, Kakamega County.

The city offers modern healthcare, education, and clean energy to underserved communities. What began as a local project has grown beyond Kenya’s borders, MMTC now has a presence in 12 other African countries and plans to build 18 smart cities across the continent by 2050. The long-term goal: improve the lives of up to 800 million people.

MMTC expands healthcare across Africa

Despite an ongoing legal battle, Mwale hasn’t let up. MMTC recently hosted major events, including the FESTAC Business Conference and the MMTC Marathon, which helped raise funds to expand healthcare access. Meanwhile, the city’s Hamptons Hospital model has been introduced in Suriname. Mwale also made a stop at the 2025 Milken Conference in Los Angeles, where he met with global investors and leaders to discuss potential partnerships.

His vision for MMTC is already gaining ground in other parts of Africa. In June 2024, he signed a deal with Zambia’s Industrial Development Corporation to support projects in smart cities, mining, infrastructure, and agriculture, sectors seen as key to job creation and long-term economic growth. That came on the heels of a 2023 agreement to develop a medical city in Ghana. Similar projects are also underway in Botswana, Congo, and Sierra Leone, all part of his broader push to rethink how healthcare and infrastructure are delivered across the continent.