Mbau v Tiken Co-operative Savings and Credit Society Ltd [2025] KECPT 354 (KLR)
- Citation
- [2025] KECPT 354 (KLR)
- Status
- Judgment
- Jurisdiction
- Kenya
- Court
- Cooperative Tribunal
- Panel
- Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Case number
- Tribunal Case E592 of 2024
- Language
- English
More details
- Court
- Cooperative Tribunal
- Panel
- Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Case number
- Tribunal Case E592 of 2024
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Tribunal found that the claimant had proved his membership and the total share contributions of Kshs. 524,000 through documentary evidence, including payslips and a witness statement. The respondent failed to contest the claim or provide any evidence to the contrary. The Tribunal held that, in the absence of proof of the claimed 12% per annum interest rate or evidence of declared dividends, the claimant was not entitled to pre-suit interest at that rate. The Tribunal therefore awarded the principal sum of Kshs. 524,000, with interest at tribunal rates from the date of filing until payment in full, and costs to the claimant. The claim for interest at 12% per annum and for dividends was dismissed for lack of substantiation.
Court disposition
claim partly allowed
Orders
- The respondent shall refund Kshs. 524,000 to the claimant.
- The respondent shall pay interest on the principal sum at tribunal rates from the date of filing until payment in full.
- The respondent shall bear the costs of the claim.
02
Material facts
Parties
Moses Mbau
ApplicantTiken Co-operative Savings and Credit Society Ltd
RespondentAmounts and remedies
- Share Contribution Refund Awarded: KES 524,000
03
Procedural history
Posture
Tribunal Claim / Judgment
04
Questions and positions
Legal issues
- 01
Whether the claimant is entitled to a refund of Kshs. 524,000 being share contributions from the respondent SACCO.
- 02
Whether the claimant is entitled to interest at 12% per annum on the share contributions prior to filing the claim.
- 03
Whether the claimant is entitled to costs and interest at tribunal rates from the date of filing until payment in full.
Party arguments
- Applicant
- The claimant argued that he was a member of the respondent SACCO through his employment at Toyota Kenya Limited, contributing Kshs. 5,000 monthly until April 2021, totaling Kshs. 524,000. Upon leaving employment, he requested a refund of his share contributions and declared dividends, but the respondent failed to pay despite demand and notice. He claimed the principal sum, interest at 12% per annum up to the date of filing, and costs.
- Respondent
- The respondent did not enter appearance or file any response to the claim, and did not participate in the proceedings.
05
Court’s reasoning
Legal principles
- 01
General principles of contract and evidence law; Tribunal's reasoning
A claimant seeking interest at a specific rate must substantiate the applicable rate with evidence, not mere assertion.
- 02
Co-operative Societies Act (Cap 490); Tribunal practice
A member of a SACCO is entitled to a refund of share contributions upon cessation of membership, subject to the society's rules and any outstanding obligations.
06
Ratio, limits and disposition
Ratio decidendi
The Tribunal found that the claimant had proved his membership and the total share contributions of Kshs. 524,000 through documentary evidence, including payslips and a witness statement. The respondent failed to contest the claim or provide any evidence to the contrary. The Tribunal held that, in the absence of proof of the claimed 12% per annum interest rate or evidence of declared dividends, the claimant was not entitled to pre-suit interest at that rate. The Tribunal therefore awarded the principal sum of Kshs. 524,000, with interest at tribunal rates from the date of filing until payment in full, and costs to the claimant. The claim for interest at 12% per annum and for dividends was dismissed for lack of substantiation.
Obiter and limits
- It is not enough to merely state an interest rate; the same must be proved.
- SACCO interest rates differ depending on various factors and must be supported by evidence.
Court disposition
claim partly allowed
- The respondent shall refund Kshs. 524,000 to the claimant.
- The respondent shall pay interest on the principal sum at tribunal rates from the date of filing until payment in full.
- The respondent shall bear the costs of the claim.
Source and reliance status
Cooperative Tribunal
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Cooperative Tribunal
Judgment
Mbau v Tiken Co-operative Savings and Credit Society Ltd (Tribunal Case E592 of 2024) [2025] KECPT 354 (KLR) (26 June 2025) (Judgment)
Neutral citation: [2025] KECPT 354 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case E592 of 2024
Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
June 26, 2025
Between
Moses Mbau
Claimant
and
Tiken Co-operative Savings and Credit Society Ltd
Respondent
Judgment
1. The Claimant brought the claim herein by way of Statement of Claim dated 22nd July 2024 wherein the prayers for judgement against the Respondent for; -a.A sum of Kshs 524,000/= being refund of the claimant share contribution.b.Declared dividends on the claimants shares up to the date of filing this claimc.In the alternative to prayer (b) above interest on the Claimant’s shares at 12% per annum to the date of filing this claim.d.Interest on (a) and (b) or (e) above at court rates from the date of filing this claim until payment in full.e.Costs of this cause be borne by the Respondent. It is the Claimants claim that he was a member of the Respondent while he was in the employment of Toyota Kenya limited and bought shares in the Respondent through salary deductions by his employer until April 2021 when his employment with Toyota Kenya come to an ended the claimant had bought shares valued at Kshs. 524,000/= that despite demand and notice of intention to sue issued, the Respondent has failed to pay the paid money or the claimants declared dividends, that the Claimants claim is for the said sum of Kshs. 524,000/=. Together with interest dividends or thereon at 12 percent per annum upto the date of filing this claim and thereafter interest at court rates until payment in full.
2. The defaulted failed to enter appearance and respond to the claim within the stipulated period and on 30/10/2024 summary judgement was entered in famous of the claimant in the sum Kshs. 524,000/= with costs and interest from the date of filing claim.
3. The matter then proceeded for formal proof hearing for purposes of prayers (b) and (e) of the claim, however the claimant withdrawal prayer of the claim before the claim before the matter proceeded to formal proof hearing at the hearing the claimant advanced sworn evidence wherein he produced the witness statement dated 22/07/2024 as his evidence in chief the Claimant also produced in the List of Documents dated 22/07/2024 and marked the documents thereto attached as the Claimants exhibits 1-3.
4. The Claimant stated in the hearing that after he left employment the requested for his deposits savings but the Respondent withheld the same from 2021 that his claim for interest is from April,2021 when he left employment on classification being by members of the Tribunal the Claimant started that he asked for his refund on 11/03/2024 though his advocate and after having employment he followed up on numerous occasions in vain
Analysis and Determination 5. We have considered the documents filed by the Claimant and the oral evidence handled in court.It is evident from the pay slip of the Claimant he was contributing the sum of Kshs. 5000/= to the Respondent Sacco monthly, it is also evident from the pay slip of April 2021, which was claimants last pay slip with Toyota Kenya Limited that the Claimant had contributed a total of Kshs. 524,000/=SummaryJudgement having been entered in this amount already and the Claimant having withdrawn prayer (b) of his claim what remains for our determination prayer (c) for interest on the claimants shares at 12% per annum up to the date of filing of the claim.It is common know knowledge that SACCO interest rates differ depending on various factors. Without any information from the claimant concerning the Respondent financials during the time before he filed the claim herein, we one not in a position to determine that indeed the interest on his deposits before suit is 12% per annum as Claimant in a nutshell, the Claimant has failed to substantiate or support his claim of interest of 12% per annum before the filing of the claim. It is not enough to merely state on interest rate, the same must be proved consequently we conclude by entering final judgement in favor of the claimant and against the Respondent as for:a.Refund of Kshs. 524,000/= deposits.b.Costs of this Claim to be borne by the respondent.c.Interest on (a) and (b) above at tribunal rated from the date of filing suit until payment in full
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 26TH DAY OF JUNE, 2025. HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 26. 6.2025HON. BEATRICE SAWE - MEMBER SIGNED 26. 6.2025HON. FRIDAH LOTUIYA - MEMBER SIGNED 26. 6.2025HON. PHILIP GICHUKI - MEMBER SIGNED 26. 6.2025HON. MICHAEL CHESIKAW - MEMBER SIGNED 26. 6.2025HON. P. AOL - MEMBER SIGNED 26. 6.2025Tribunal Clerk GechikoNo appearance by partiesJudgment delivered in absence of parties.
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