[2025] KECPT 291 (KLR)

[2025] KECPT 291 (KLR)

The Tribunal found that the dispute is between members of Harambee Co-operative Savings and Credit Society Ltd and concerns the business of the cooperative society, specifically the repayment of a loan guaranteed by the Claimants and defaulted by the Respondent. The Tribunal held that such disputes are expressly contemplated under section 76(1)(a) of the Cooperative Societies Act as disputes among members concerning the business of the society. The Tribunal further determined that the claim falls within the scope of section 76(2), as it relates to a debt arising from the cooperative society's business. Accordingly, the Tribunal has jurisdiction to hear and determine the matter, and the...

Citation
[2025] KECPT 291 (KLR)
Parties
Applicant: Nicholas Bodo; Applicant: George Gachora; Applicant: Gichuki Kabukuru; Respondent: Isaac Nduati
Court
Cooperative Tribunal
Jurisdiction
Kenya
Judgment Date
29 May 2025
Case Number
Tribunal Case 625/E247 of 2023
Procedural Posture
Preliminary Objection / Ruling on Preliminary Objection
Outcome
preliminary objection dismissed; tribunal affirms jurisdiction
Judges
BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, PO Aol
Legal Topics
Jurisdiction of Tribunal, Cooperative Societies Disputes, Guarantor Liability, Loan Default
Source Language
English
Civil Procedure Commercial and Corporate Jurisdiction of Tribunal Cooperative Societies Disputes Guarantor Liability Loan Default

Case Brief

Summary, issues, holding and outcome

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Parties

Nicholas Bodo

Applicant

George Gachora

Applicant

Gichuki Kabukuru

Applicant

Isaac Nduati

Respondent

Procedural Posture

Preliminary Objection / Ruling on Preliminary Objection

Legal Issues

  1. 1 Whether the Cooperative Tribunal has jurisdiction to hear and determine the dispute under section 76 of the Cooperative Societies Act.
  2. 2 Whether the dispute as filed is competent and discloses a proper cause of action.

Ratio Decidendi

The Tribunal found that the dispute is between members of Harambee Co-operative Savings and Credit Society Ltd and concerns the business of the cooperative society, specifically the repayment of a loan guaranteed by the Claimants and defaulted by the Respondent. The Tribunal held that such disputes are expressly contemplated under section 76(1)(a) of the Cooperative Societies Act as disputes among members concerning the business of the society. The Tribunal further determined that the claim falls within the scope of section 76(2), as it relates to a debt arising from the cooperative society's business. Accordingly, the Tribunal has jurisdiction to hear and determine the matter, and the...

Court Disposition

preliminary objection dismissed; tribunal affirms jurisdiction

Orders

  • The Preliminary Objection dated 15th August 2024 is dismissed with costs to the Claimant/Respondent.
  • Mention for Pre-trial directions set for 22nd October 2025.