https://new.kenyalaw.org/akn/ke/judgment/kecopt/2026/278

Achola v Metropolitan National Sacco Ltd (Tribunal Case E050 of 2023) [2026] KECOPT 278 (KLR) (25 June 2026) (Judgment) Neutral citation: [2026] KECOPT 278 (KLR) Republic of Kenya In the Cooperative Tribunal Tribunal Case E050 of 2023 J Mwatsama, Ag Chair, B Sawe, F Lotuiya, M Chesikaw & PO Aol, Members June 25, 2026 Between Eric Titus Achola Claimant and Metropolitan National Sacco Limited Respondent Judgment Introduction 1.The Claimant instituted this claim dated 15th June 2023 against the Respondent seeking refund of his shares together with accrued dividends following his withdrawal from the Respondent Sacco. 2.The Claimant seeks the following orders:a.An order directing the Respondent to pay the Claimant Kshs. 184,449.22 being refund of shares;b.Payment of Kshs. 25,823.00 being accrued dividends allegedly calculated at the rate of 12% per annum for seven (7) years;c.Interest on prayers (a) and (b) above;d.Costs of the suit; ande.Any other relief that this Tribunal may deem fit and just to grant. The Claimant's Case 3.The Claimant averred that he joined the Respondent Sacco in August 2016 and contributed towards share capital. 4.He further averred that by a letter dated 17th February 2023, he notified the Respondent of his intention to withdraw from membership and demanded refund of his shares. 5.The Claimant contended that at the time of withdrawal, he had accumulated shares amounting to Kshs. 184,449.22. He further claimed Kshs. 25,823.00 being accrued dividends allegedly calculated at the rate of 12% per annum for a period of seven years. 6.In support of his claim, the Claimant produced: -a.a withdrawal letter dated 17th February 2023 andb.a Member Account Statement showing deposits amounting to Kshs. 184,449.22. The Respondent's Case 7.The Respondent filed a Statement of Defence denying liability and contending that refunds to members had been suspended pursuant to a resolution of the Annual General Meeting owing to financial challenges facing the Sacco and the large number of members seeking withdrawal. 8.The Respondent further indicated that it would rely on an AGM resolution, Audited Accounts, Statement of Account and Affidavit of Means in support of its defence. 9.Both parties subsequently filed written submissions which the Tribunal has considered. Issues For Determination 10.The issues for determination are:i.Whether the Claimant has proved his entitlement to refund of shares amounting to Kshs. 184,449.22;ii.Whether the Claimant has proved his entitlement to accrued dividends amounting to Kshs. 25,823.00;iii.What orders should issue as to interest and costs. Analysis And Determination 11.The Tribunal has considered the pleadings, documentary evidence and written submissions on record. 12.In Palace Investment Ltd v Geoffrey Kariuki Mwenda & Another [2015] eKLR, the Court of Appeal stated:“The burden of proof is on the party who would fail if no evidence at all were given on either side." 13.The Tribunal must therefore determine whether the material placed before it by the Claimant is sufficient to establish the claim on a balance of probabilities. 14.The Claimant produced documentary evidence demonstrating that he was a member of the Respondent Sacco, that he withdrew his membership by letter dated 17th February 2023 and that he had accumulated shares amounting to Kshs. 184,449.22. The Tribunal finds the said evidence credible and sufficient to establish the Claimant's entitlement to the shares claimed. 15.The Respondent relied on an alleged AGM resolution, Audited accounts, Affidavit of Means and Statement of Account. However, none of the said documents were produced before the Tribunal. In CMC Aviation Ltd v Cruisair Ltd [No. 1] [1978] KLR 103, the Court observed:“Pleadings contain the averments of the parties concerned until they are proved or disproved. They are not evidence and no decision could be based on them." 16.Consequently, the Tribunal is unable to place reliance on the Respondent's assertions regarding the alleged suspension of refunds. 17.The Tribunal finds that the Respondent failed to place before it any evidence capable of proving the alleged AGM resolution or the financial circumstances relied upon in defense of the claim. Consequently, the said assertions remain mere averments unsupported by evidence. 18.Accordingly, the Tribunal is satisfied that the Claimant has proved his entitlement to refund of shares in the sum of Kshs. 184,449.22. 19.With respect to the claim for Kshs. 25,823.00 being accrued dividends, the Tribunal notes that dividends in a co-operative society are not automatic or fixed entitlements. They are ordinarily declared from surplus generated by the society after consideration of audited accounts and approval by the Annual General Meeting in accordance with the applicable by-laws and co-operative governance principles. 20.Accordingly, entitlement to dividends must be supported by evidence such as by-laws, AGM resolutions, audited financial statements, dividend declarations or other records demonstrating both entitlement and computation. 21.In the present case, although the Claimant pleaded entitlement to dividends calculated at the rate of 12% per annum for seven years, no documentary evidence was produced to demonstrate that such dividends were declared or payable during the period claimed. No by-laws, audited accounts, AGM resolutions or dividend declarations were placed before the Tribunal to support the claim. 22.The Tribunal therefore finds that the claim for accrued dividends was not strictly proved and consequently fails. 23.In the result, judgment is entered in favor of the Claimant against the Respondent as follows:a.The Respondent shall pay the Claimant Kshs. 184,449.22 being refund of shares;b.The amount awarded in (a) above shall attract interest at court rates from 17th February 2023 until payment in full;c.The claim for Kshs. 25,823 being accrued dividends fails.d.The Claimant shall have the costs of the suit. JUDGMENT DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 25TH DAY OF JUNE, 2026.HON. J. MWATSAMA AG. CHAIRPERSON SIGNED 25/6/2026HON. BEATRICE SAWE MEMBER SIGNED 25/6/2026HON. FRIDAH LOTUIYA MEMBER SIGNED 25/6/2026HON. MICHAEL CHESIKAW MEMBER SIGNED 25/6/2026HON. P. AOL MEMBER SIGNED 25/6/2026Court Assistant – KokiNo appearance by partiesJudgement delivered in their absence