[2023] KECPT 819 (KLR)
The tribunal found that the claimant was a member of the respondent SACCO and had made contributions totaling Kshs 240,600/=. The respondent did not dispute the membership or the amount contributed but sought to deduct Ksh 5,000/= for institutional shares and Ksh 1,000/= as an administration fee, both of which are...
Source-derived case information.
- Citation
- [2023] KECPT 819 (KLR)
- Parties
- Claimant: Francis Njunge Gatimu; Respondent: Transcom Sacco Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 532 (E365) of 2021
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- Claim allowed in part for Ksh 212,140 plus costs and interest.
- Judges
- BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Refunds, Member Withdrawal, Deductions on Refunds
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Francis Njunge Gatimu
Claimant
Transcom Sacco Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of his contributions upon withdrawal from the SACCO.
- 2 Whether deductions for institutional shares and administration fees are lawful.
Ratio Decidendi
The tribunal found that the claimant was a member of the respondent SACCO and had made contributions totaling Kshs 240,600/=. The respondent did not dispute the membership or the amount contributed but sought to deduct Ksh 5,000/= for institutional shares and Ksh 1,000/= as an administration fee, both of which are permitted under the Cooperative Society Act and the SACCO's rules. The tribunal held that institutional shares are non-refundable and that the administration fee was properly deductible. The respondent had already paid the first instalment of Ksh 23,460/=. After deducting the institutional shares, administration fee, and the first instalment, the tribunal determined that the...
Court Disposition
Claim allowed in part for Ksh 212,140 plus costs and interest.
Orders
- The respondent shall pay the claimant Ksh 212,140 after deductions for institutional shares, administration fee, and the first instalment already paid.
- The respondent shall pay costs of the suit and interest on the awarded sum.
Full Case Text
Judgment text and source record
22 paragraphs
Gatimu v Transcom Sacco Limited (Tribunal Case 532 (E365) of 2021) [2023] KECPT 819 (KLR) (31 August 2023) (Judgment)
Neutral citation: [2023] KECPT 819 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 532 (E365) of 2021
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
August 31, 2023
Between
Francis Njunge Gatimu
Claimant
and
Transcom Sacco Limited
Respondent
Judgment
1. The Claim for determination is dated 01/11/2021 filed on 24/11/2021. The Claimant avers that on the 28th day of May 2020, he wrote to the Respondent appraising them of his impending retirement and requested for a refund of his total contributions of Kshs.240,600/=. He filed his Witness Statement dated 01/11/2021 and filed on 24/11/2021. He also filed a List of Documents dated 01/11/2021 on 24/11/2021. The list included;a.Payslip – September 2020b.Demand letter from the Claimant dated 28/05/2020c.Demand letter from the advocate dated 15/03/2021
2. The Respondent filed a Statement of Defence dated 04/01/2022. The Respondent avers that they owe the Claimant a total share amounting to Ksh 240,600/= Less institutional shares of Ksh 5,000/= and administration fee Ksh 1,000/= hence the total amount claimed being Ksh 234,600/=. The Respondent further states that it is ready to pay the amount over a ten month instalment rate of Ksh 23,460/=. They actually paid the first instalment and defaulted. However, the Respondent denies the receiving of the withdrawal notice from the Claimant.
3. This being a matter of refunds, the parties were directed to file written submissions. The Claimant filed his submission dated 13/01/2023 on 06/06/2023. The Respondent has not filed their written submissions as at the date of writing this judgement.
4. Having considered the pleadings and written submissions of the Claimant, the issue for determination is one;Whether the Claimant is entitled to their refund.It is not disputed by the Respondent that the Claimant was their member and held savings and contributions amounting to Kshs 240,600/=. The reason the Respondents are not refunding the Claimant the full amount is because of the administration fees of Ksh 1,000/= and institutional shares of Ksh 5,000/= they wish to deduct from the whole amount which is Kshs 240,600/=.Shares in SACCO are non refundable.
5. The Cooperative Society Act read together with the Cooperative Societies Rules of 2004 requires that members are entitled to refunds upon expulsion or withdrawal of membership.
6. The Ksh. 5,000/= of institutional shares and the first Instalment of Ksh 23,460/= will be deducted.
Determination 7. As such, the Claimant has proved their case and we thus find in favour of the Claimant against the Respondent for Ksh 212,140/= after deductions plus cost and interests.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 31ST DAY OF AUGUST, 2023. HON. BEATRICE KIMEMIA CHAIRPERSON SIGNED 31. 8.2023HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 31. 8.2023HON. BEATRICE SAWE MEMBER SIGNED 31. 8.2023HON. FRIDAH LOTUIYA MEMBER SIGNED 31. 8.2023HON. PHILIP GICHUKI MEMBER SIGNED 31. 8.2023HON. MICHAEL CHESIKAW MEMBER SIGNED 31. 8.2023HON. PAUL AOL MEMBER SIGNED 31. 8.2023TRIBUNAL CLERK JEMIMAHGitau advocate for the claimantNo appearance by Respondent