[2025] KECPT 186 (KLR)
The Tribunal found that the Claimant had established her membership and the amount of deposits held by the Respondent through documentary evidence. The Respondent's reliance on internal financial difficulties and AGM resolutions to suspend refunds was not a lawful basis to deny the Claimant her statutory right to a...
Source-derived case information.
- Citation
- [2025] KECPT 186 (KLR)
- Parties
- Applicant: Sophia Mumteia Kipury; Respondent: Metropolitan National Sacco Society
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 161/E246 of 2024
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- judgment for applicant
- Judges
- BM Kimemia, Janet Mwatsama, P. Gichuki, B Sawe, M Chesikaw, F Lotuiya, PO Aol
- Legal Topics
- Refund of Deposits, Cooperative Society Liabilities, Member Withdrawal Rights
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Sophia Mumteia Kipury
Applicant
Metropolitan National Sacco Society
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the Respondent is liable to refund the Claimant's deposits amounting to Kshs 634,145/=.
- 2 Whether the Claimant met the conditions for a refund from the Sacco.
- 3 Whether the Respondent's financial difficulties or AGM resolution suspending refunds lawfully bar the Claimant's entitlement.
Ratio Decidendi
The Tribunal found that the Claimant had established her membership and the amount of deposits held by the Respondent through documentary evidence. The Respondent's reliance on internal financial difficulties and AGM resolutions to suspend refunds was not a lawful basis to deny the Claimant her statutory right to a refund. The Tribunal held that statutory obligations under the Cooperative Societies Act prevail over internal resolutions, and the Respondent's financial challenges do not extinguish its liability to refund members' deposits. Judgment was therefore entered in favor of the Claimant for the full amount claimed, with costs and interest at Tribunal rates from the date of filing.
Court Disposition
judgment for applicant
Orders
- The Respondent shall refund Kshs 634,145/= to the Claimant.
- The Respondent shall pay interest at Tribunal rates from the date of filing the claim.
Full Case Text
Judgment text and source record
22 paragraphs
Kipury v Metropolitan National Sacco Society (Tribunal Case 161/E246 of 2024) [2025] KECPT 186 (KLR) (27 February 2025) (Judgment)
Neutral citation: [2025] KECPT 186 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 161/E246 of 2024
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, P. Gichuki, B Sawe, M Chesikaw, F Lotuiya & PO Aol, Members
February 27, 2025
Between
Sophia Mumteia Kipury
Claimant
and
Metropolitan National Sacco Society
Respondent
Judgment
1. The matter before the Tribunal is a Statement of Claim dated 17th April 2024. The Claimant avers that she has been an employee of the Teachers Service Commission since 1984 and retired on 21st September 2022The Claimant has made total deposits of Kshs 634,145/= being remitted to the Respondent by the Teachers Service Commission.
2. The Respondent failed/ neglected to refund the sum of Kshs 634,145/= to the Claimant.The Claimant avers that on 7th March, 2024, she wrote a Demand Letter to the Respondent seeking Claimant’s deposits but Respondent refused to make good of the Claimant’s demand.
3. The Claimant seeks for:1. A refund of Kshs 634,145/=2. Costs of the suit3. Interests of the above at court ratesThe Claimant also filed Verifying Affidavit dated 28/03/2024Claimant also filed List of Witnesses dated 28/03/2024 filed on 17th April 2024Claimant also filed List of Documents dated 28/3/2024 which had:1. Copy of payslip from TSC2. Copy of letter dated 10/01/2021 from TSC3. Copy of a Demand letter dated 07/03/20244. Copy of Claimant’s National ID card
5. The Respondent filed a Statement of Defence on 17/05/2024The Respondent is in denial with the averments in paragraph 3, 4 and 5 in the statement of claim and demands for strict proof.Respondent avers that the Claimant has not proved that Respondent is in possession of her shares/ savings and hasn’t met the condition for a refund.Respondent also avers the Claimant’s demands are made in bad faith contrary to the resolution of the Annual General Meeting that all refunds be suspended.Respondent says Claimant has never made any official demands of her claim.Respondent states that he has through so much turmoil, financial challenges and that it is overwhelmed by various Applicants seeking to withdraw from the society as result of mismanagement by previous committee which has been subjected to judicial review in the High Court.Respondent avers that it requires to have a more structured approach to handle the outstanding cases.
6. The Claimant through its documents has proved:1. She was an employee of the Teachers Service Commission and a member of the R2. She has saved a total of Kshs 634,1453. She wrote a demand letter on 7/03/2024 seeking for refund of her deposits of Kshs 634,145/=Claimant provided a copy of her last payslip and the same indicates that her total deductions at the Respondent amount to Kshs 634,145/=
7. Respondent on Defence states that Respondent society is undergoing so much turmoil, financial and challenges and its overwhelmed by various applicants seeking to withdraw from the society as a result of mismanagement by previous committee which has been subjected to judicial review in high court.Respondent requires to have a more structured approach to handle the outstanding matters.
8. The fact that the Respondent is undergoing so much turmoil, it does not convince the Tribunal that judgement should not be served in favour of the Claimant.We are convinced that Respondent owes Claimant kshs 634,145/=.Judgement is entered in favour of Claimant against Respondent for Kshs 634,145/= plus cost and interest at Tribunal rates from the date of filing claim.
JUDGEMENT SIGNED, DATED AND DELIVERED VIRTUALLY THIS 27TH DAY OF FEBRUARY, 2025HON B. KIMEMIA - CHAIRPERSON SIGNED 27. 02. 2025HON J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 27. 02. 2025PHILIP GICHUKI - MEMBER SIGNED 27. 02. 2025BEATRICE SAWE - MEMBER SIGNED 27. 02. 2025MICHAEL CHESIKAW - MEMBER SIGNED 27. 02. 2025FRIDAH LOTUIYA - MEMBER SIGNED 27. 02. 2025Tribunal Clerk JonahObina advocate for the ClaimantNo appearance for Respondent