Claudia Nekesa Wafula v Cosmos Sacco Society Ltd

**REPUBLIC OF KENYA** **IN THE CO-OPERATIVE TRIBUNAL AT NAIROI** **TRIBUNAL CASE NO. E439 OF 2023** **(Coram: Hon. J. Mwatsama- Chairperson, Hon. B. Sawe- Member, Hon. F. Lotuiya- Member, Hon. M. Chesikaw- Member and Hon. P. Aol- Member.)** **CLAUDIA NEKESA WAFULA……………………………….........CLAIMANT** **VERSUS** **COSMOS SACCO SOCIETY LTD………………………….….RESPONDENT** **JUDGEMENT** **Brief Background.** 1. The Claimant herein state that she was an employee of Cosmos ltd from 1996 to 2022 during which time she registered as a member of the Respondent and was allocated member No. MIWAF555. During the period of her employment her salary was being deducted monthly through check-off system and remitted to my savings account held by the Respondent. That as at March 2022 and before her employer declared her redundant, she had Kshs. 547,325/= in her savings account. Following the redundancy, she wrote a letter dated 10th March 2022 to resign from the Sacco. Further vide a letter of demand dated 13th April 2022 the Claimant demanded to be paid back her savings plus interest and dividends. **The Claim** 1. By a statement of Claim dated 19th May 2023, the Claimant herein Claudia Nekesa Wafula seeks for judgement against the Respondent for: 2. An order compelling the respondent/defendant to pay sh 547.325/= being the accumulated savings for the period running from 1996 – 2022 and other incidental dividends payable to the Plaintiff. 3. Costs and interest at the court rates 4. Any other relief that is deemed necessary to grant to meet the ends of justice. The Claimant founded these reliefs on the fact that upon resigning/withdrawal from the Respondent, the Respondent declined and /or neglected to refund her savings. 1. In support of her Claim, the Claimant filled a Witness Statement and a list of documents dated 19th May 2023 containing copies of the Claimant’s Statement of Account, Resignation Letter dated 10th March 2022, Demand Letter dated 13th April 2023 and unsigned letter dated 24th November 2020 demanding for payment of some dividends. **The Respondents Defence.** 1. Through a Memorandum of Defence dated 12 September 2023, the Respondent opposed the Claimants claim and averred that the claimant’s savings is subject to the management committee analysis to establish whether the claimant has some running loan or that she has guaranteed another member with existing Loan. On the issue of stopping the monthly contributions, the respondent stated that a member can still retain his/her savings account with a Sacco with an intention to earn dividends. To the Respondent, the Claim is premature and unmerited in the circumstances. **Tribunal’s Directions.** 1. The Tribunal scheduled pre-trial mentions, after which on 19th January 2026 ordered that the matter be canvassed by way of written submission and each party was granted 30 days to file and serve the Written Submissions. 2. In compliance the Claimant filed and served her Written Submissions dated 20th May 2026 yet as at the date of writing this judgement the Respondent has not filled any. 3. Nonetheless, the Tribunal shall proceed to determine the issues raised in the Claim and the respondence defence. **Issues.** 1. Having considered the Claimant’s Statement of Claim, the Supporting Documents, together with her Written Submissions and the Respondents’ Statement of Defence, we have framed two (2) issues for determination. **a) Whether the Claimant has established a proper basis to warrant an order for refund of her savings or not?** **b) Who should bear the cost of the Claim?** **Analysis & Determination.** 1. **Whether the Claimant has established a proper basis to warrant an order for refund of her savings or not?** 2. To begin with, this is a claim for refund of savings/deposit. Th Claimant contend that she wrote a letter of resignation from the respondent on 10th March 2022 which reads: *“I wish to resign from cosmos savings and credit cooperative society with effect from 10th March 2022.* *I kindly urge you not to make any deductions from my salary as from the date stated above*”. 1. A plain interpretation of this letter, is that the Claimant simply resigned and instructed that further deductions from her salary should stop. The letter does not indicate that she wanted to withdraw or terminate her membership with the respondent. 2. We note that the Claimant did properly withdraw from the Respondent vide her letter dated 10th March, 2022, however she followed her resignation by a demand letter from her Advocates dated 13th April 2023 asking for the refund. This, in our opinion is a clear indication that the Claimant was not desirous to maintain the savings account held by the Respondent. 3. Therefore, the argument advanced by the Respondent that the Claimant did not make any formal withdrawal and request to be paid her savings is hollow with no feet to stand on, considering the fact that the same Respondent did not file or produce anything to show that there is a standard format for notice of withdrawal from the SACCO. Moreover, this Tribunal will not be persuaded by technicalities of procedure but rather it shall remain to be guided by the provisions of Rule 4 of the **Cooperative Tribunal (practice and Procedure) Rules 2009** which states as follows; “**The tribunal shall have power and discretion to decide all matter before it with due speed and dispatch without undue regard to technicalities of procedure”** 1. Given that the statement of claim was served upon the respondents on 24th July 2023 and the Respondent has not pleaded any liability on the part of the Claimant in terms of loans and guarantees to other members, the tribunal is alive to the fact that a member has a right to her deposits. The [***Co-operative Societies Act***](https://kenyalaw.org/akn/ke/act/1997/12)is clear on the concept of voluntary membership to a co-operative society as provided under Section 4 (b) (i) and as long as a Co-operative society is in operation, it is expected to honor its obligations to its members. 2. The Respondents in their Defence did not deny that they do not owe the claimant the claimed sum of kh547,325/= neither did they demonstrate that she has some outstanding Loan or she guaranteed another member who has some existing loan. The Legal Notice No. 82 (The [*Sacco Societies Act*](https://kenyalaw.org/akn/ke/act/2008/14)) at Section 21 (6) cleary provide that: **“A non-deposit-taking Sacco society shall refund to a member the amount accumulated in the member's non-withdrawable account within sixty days of receiving the written notification of the member to withdraw from membership of the Sacco society.”** 1. Further, the Claimant produced her Statement of Account yet the Respondent did not dispute the running balances or the amounts owed except clinging to the fact that the Claimant did not make a formal request for refund. On record is an Affidavit of Service dated 30th August 2023 sworn by Walter O.Motari which show that the Respondent was served with the Claimants pleadings. 2. The fact that the Respondent formally knew that the Claimant was seeking for the refund of her saving as at 24th July 2023 when they were served with the pleadings and did not take any action all along till the date of writing this judgement (3 years after) cannot be said that the claim is premature or an abuse of the tribunal process. 3. In the absence of credible Defence by the Respondent devoid of semantics, this Tribunal is persuaded that the Respondent owes the Claimant the claimed sum of Kshs. 547,325/=. 4. Drawing from the above analysis, it is the tribunal’s finding that the claimant has established her case on a balance of probability to warrant the refund of her savings. 5. Accordingly, we hereby enter judgement in favour of the Claimant against the Respondent for the refund of Ksh.547,325/= plus costs and interest at the Courts rate from the date of filling the Claim. Ruling signed, dated and delivered *virtually* at **Nairobi** this **27th** day of **August, 2026.** **Hon. J. Mwatsama Chairperson Signed** **27.8.2026** **Hon. Beatrice Sawe Member Signed 27.8.2026** **Hon. Fridah Lotuiya Member Signed 27.8.2026** **Hon. Paul Aol Member Signed 27.8.2026** **Hon. Michael Chesikaw Member Signed 27.8.2026** **Tribunal Clerk Jemimah** Kithure advocate for the Claimant. Humphrey & Co. Advocate for Respondent – No appearance. **Hon. J. Mwatsama Chairperson Signed 27.8.2026**