[2025] KECPT 296 (KLR)
The Tribunal found that the respondent, through its CEO, admitted the claim amount of Kshs. 175,200/=, and the only reason for delay was the respondent's inability to trace the claimant's file. The Tribunal held that the respondent, as custodian of the file, could not use its own administrative lapses to delay...
Source-derived case information.
- Citation
- [2025] KECPT 296 (KLR)
- Parties
- Applicant: Samson Njoroge Gitau; Respondent: Ufundi Sacco Society Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 676 of 2017
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- claim allowed in part
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, PO Aol
- Legal Topics
- Cooperative Societies, Member Savings Refund, Dividends Non Payment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Samson Njoroge Gitau
Applicant
Ufundi Sacco Society Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of Kshs. 175,280/= from the respondent Sacco.
- 2 Whether the claimant is entitled to dividends for house shares.
- 3 Whether the respondent's delay in refunding savings due to a missing file is justifiable.
Ratio Decidendi
The Tribunal found that the respondent, through its CEO, admitted the claim amount of Kshs. 175,200/=, and the only reason for delay was the respondent's inability to trace the claimant's file. The Tribunal held that the respondent, as custodian of the file, could not use its own administrative lapses to delay justice to the claimant. The Tribunal further held that, as no dividends had been declared since 2007 due to poor performance, the claimant was not entitled to dividends. The Tribunal clarified that while shares in a cooperative are not refundable, savings are, and thus the claim for refund of savings was merited. Judgment was entered for the claimant for the admitted sum with costs...
Court Disposition
claim allowed in part
Orders
- Respondent to refund the claimant Kshs. 175,280/= with costs at Tribunal rate from date of filing suit.
- Prayer for dividends is declined.
Full Case Text
Judgment text and source record
31 paragraphs
Gitau v Ufundi Sacco Society Limited (Tribunal Case 676 of 2017) [2025] KECPT 296 (KLR) (29 May 2025) (Judgment)
Neutral citation: [2025] KECPT 296 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 676 of 2017
BM Kimemia, Chair, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki & PO Aol, Members
May 29, 2025
Between
Samson Njoroge Gitau
Claimant
and
Ufundi Sacco Society Limited
Respondent
Judgment
1. The Claim is instituted vide Statement of Claim dated 22/11/2017. In this Claim, the claimant, a member of the Respondent, member number 4377 alleges that he had savings with the Respondent Sacco with up to June 2017 when he retired.He claims for Kshs. 175,280/= with interest among others.
2. The Claimant filed a Witness Statement, undated but received in this Tribunal on 23/11/2017 and documents dated 22/11/2017.
3. The Claimant’s case was heard on 17/8/2020 where the Claimant in person adopted his Statement of Claim and documents as his evidence.
4. He stated that his major Claim was for refund of Kshs. 179,280/= plus 2 months deductions after retirement.
5. He stated that he had not been receiving dividends for the house shares. He stated he had 100 shares of Kshs. 200/= each.
6. The Respondent’s case is based on the reply to the Statement of Claim dated 18/12/2017 where the Respondent denies that it owes Claimant Kshs. 175,280/= indicating that the Claimant’s file is one of those not traced and pleads for more time to authenticate the Claim.
7. The Respondent filed Supporting documents vide bundle dated 2/5/2018. The documents filed are basically citations.
8The Respondent’s case came up for hearing on 13/11/2024 where Mr. Alfonse Makori, the Chief Executive Officer of the Respondent adopted his Affidavit as his evidence in chief.
9. He confirmed that the Claimant was a member of the Respondent and made savings with them. He admitted the Claim amount of Kshs. 175,200/= but stated that no dividends were declared since 2007 due to poor performance.
10. He stated that the Respondent Board is planning to sell their Plaza/house to clear withdrawals.
Analysis. 11. We find that the Claim of Kshs. 175,200/= is not denied. Indeed it is admitted by the Chief Executive Officer of the Respondent during the hearing of the Respondent’s case on 13/11/2024.
12. We note that the Respondent has attributed the delay in authenticating the claim amount to the Claimant’s file being lost.
13. We also note that the Respondent admits not declaring dividends since 2007 due to poor performance hence Claimant is not entitled to dividends.
14. We also observe that this being a 2017 matter, the Claimant deserves justice and cannot wait for the Respondent to look for his file any longer. The custodian of the Claimant’s file is the Respondent and therefore the Claimant should not be subjected to further delay of his savings refund.
15. Member’s share in a Cooperative are not refundable. They can only be transferred to another member.
16. In view of the above, we find that the Claim has been well prosecuted and thus has merit. On the balance of probability, we enter judgement in favor of the Claimant against the Respondent and order as hereunder:a.Respondent to refund the Claimant Kshs. 175,280/= with costs at Tribunal rate from date of filing suit.b.Prayer b fails.c.Costs to the Claimant.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 29TH DAY OF MAY, 2025. HON. B. KIMEMIA - CHAIRPERSON SIGNED 29. 5.2025HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 29. 5.2025HON. BEATRICE SAWE - MEMBER SIGNED 29. 5.2025HON. FRIDAH LOTUIYA - MEMBER SIGNED 29. 5.2025HON. PHILIP GICHUKI - MEMBER SIGNED 29. 5.2025HON. P. AOL - MEMBER SIGNED 29. 5.2025Tribunal Clerk MutaiMs. Wambui advocate holding brief for Mr. Njuguna advocate for the Claimant.Ajiambo advocate holding brief for Mr. Muriuki Gitonga advocate for the RespondentAjiambo advocate – We seek 30 days stay of executionMs. Wambui advocate – They can have stay.Tribunal order30 days stay of execution granted.