[2025] KECPT 133 (KLR)

Adero v Metropolitan National Sacco (Tribunal Case 937/E586 of 2023) [2025] KECPT 133 (KLR) (30 January 2025) (Ruling)

Neutral citation: [2025] KECPT 133 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 937/E586 of 2023

Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members

January 30, 2025

Between

Dennis Onyango Adero

Claimant

and

Metropolitan National Sacco

Respondent

Ruling

1. The Claim herein was brought by the Claimant to the Tribunal vide the Statement of Claim dated 3rd August, 2023, filed on 17th January,2024. The Respondent opposed the claim vide the Defence dated 19th March, 2024. The parties were directed to file and serve written submissions in support of their cases and as at the time of writing this judgment only the submissions of the respondent filed on 22. 10. 2024 were in record.

Claimant’s Case 2. In support of his claim, the Claimant filed on 17th January 2024, a witness statement dated 3rd August 2023 and a List of Documents of even date.The Claimant’s claim is that he is a member of the Respondent having joined the Sacco in the year 2014 and that he has been dutifully remitting his contributions thereto through direct monthly deductions from his salary until August 2022; that the claimant noticed that his deposit was neither gaining interest or any other earnings despite investment thereof by the Respondent; that being dissatisfied with the investment activities of the respondent, the claimant expressed his desire to withdraw from the membership of the Sacco and wrote a letter to that effect; that thereafter the Respondent continued to receive the Claimant’s contributions directly from the Claimant’s employer and failed to refund the Claimant’s dues which stood at Kshs. 455,201. 54/= as at August 2022; that the Respondent’s actions amount to breach of contract; that despite demand and Notice of Intention to sue issued the Respondent refused to make good the Claimant’s claim.

3. The Claimant therefore prays for judgment against the Respondent as follows:a.Special damages of Kshs. 455,201. 54/=b.Interest on judgment sum at court rates from August 2022. c.Costs of the suit to be provided for.

Respondent’s Case 4. The Respondent in its Defence, denies the Claimant claim and states that the Claimant has not proved or sufficiently established that the Respondent is in possession of his savings and/or deposits ; that the Claimant has concealed from the Tribunal the resolutions of the Annual General Meeting where it was agreed that all refunds be suspended to allow the Sacco achieve sound financial position to accommodate refunds ; that the Respondent has serious financial challenges and is overwhelmed by various applicants seeking to withdraw from the society which then required a more structured approach to handle the outstanding cases. The Respondent prays for the dismissal of the Claimant’s claim with costs.In addition to the Defence, the Respondent filed a witness statement dated 1st July, 2024 and an illegible alleged list of Refunds.

Analysis And Determination 5. We have considered all the documents and evidence filed by the parties before the Tribunal and find that: 1. The Claimant had raised the sum of Kshs. 455,201. 54/= with the Respondent, as per the pay slip for August 2022.

2. The Respondent has not produced any evidence to controvert the Claimant’s claim for the sum of Kshs. 455,201. 54/=.

3. The alleged list of refunds filed by the Respondent was not legible enough to assist the Tribunal in any way.

4. Though the Respondent relies on a resolution passed on the 21st April 2022 to hold refunds in abeyance , the resolution has not been produced in evidence, and there is no evidence that the same was extended beyond 21st April 2024, in any event the Respondent has not produced before this Tribunal its audited accounts to indicate its current financial status whereas the Respondent makes a proposal to settle the case by monthly payments, the offer made on without prejudice basis and such cannot be considered by the Tribunal.Consequently, we hold that the Claimant’s case has merit.We therefore enter judgment in favour of the Claimant against the Respondent in the sum of Kshs.455,201. 54/= with costs of claim and interest at Tribunal rates from the date of judgment until payment in full.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 30TH DAY OF JANUARY, 2025. HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 30. 1.2025HON. BEATRICE SAWE MEMBER SIGNED 30. 1.2025HON. FRIDAH LOTUIYA MEMBER SIGNED 30. 1.2025HON. PHILIP GICHUKI MEMBER SIGNED 30. 1.2025HON. MICHAEL CHESIKAW MEMBER SIGNED 30. 1.2025HON. PAUL AOL MEMBER SIGNED 30. 1.2025TRIBUNAL CLERK MUTAIOdhiambo advocate for the ClaimantMetropolitan Sacco – No appearanceHON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 30. 1.2025