[2025] KECPT 244 (KLR)
The Tribunal found that the claimant had established her membership and the amount of her contributions, and had properly given notice of withdrawal and requested a refund. The respondent's reliance on an AGM resolution to suspend refunds was rejected as it could not lawfully override the claimant's statutory right...
Source-derived case information.
- Citation
- [2025] KECPT 244 (KLR)
- Parties
- Applicant: Jane W Metuo; Respondent: Metropolitan National Sacco Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 780/E1026 of 2023
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- judgment for the claimant
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Refunds, Share Capital Repayment, Liquidity Constraints, Annual General Meeting Resolutions
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Jane W Metuo
Applicant
Metropolitan National Sacco Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of her share contributions from the respondent Sacco.
- 2 Whether the respondent's AGM resolution to suspend refunds for two years is a valid defence against the claimant's demand for payment.
- 3 Whether alleged mismanagement or misappropriation by former officials can justify withholding the claimant's refund.
Ratio Decidendi
The Tribunal found that the claimant had established her membership and the amount of her contributions, and had properly given notice of withdrawal and requested a refund. The respondent's reliance on an AGM resolution to suspend refunds was rejected as it could not lawfully override the claimant's statutory right to repayment. The Tribunal further held that allegations of mismanagement or liquidity constraints, while explaining the respondent's financial position, did not constitute a valid legal defence to the claim. The Tribunal was satisfied with the claimant's documentary evidence and the respondent's admission of liability, and accordingly entered judgment for the claimant for the...
Court Disposition
judgment for the claimant
Orders
- The respondent shall pay the claimant Kshs. 441,485.71.
- The respondent shall pay interest at Tribunal rates from the date of filing the claim until payment in full.
Full Case Text
Judgment text and source record
23 paragraphs
Metuo v Metropolitan National Sacco Limited (Tribunal Case 780/E1026 of 2023) [2025] KECPT 244 (KLR) (27 February 2025) (Judgment)
Neutral citation: [2025] KECPT 244 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 780/E1026 of 2023
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
February 27, 2025
Between
Jane W Metuo
Claimant
and
Metropolitan National Sacco Limited
Respondent
Judgment
1. Matter for determination is Statement of Claim dated 1. 12. 2022 filed on 21. 11. 2023. The Claimant avers she is a member of Respondent society being number 11024. She contributed diligently to Respondent and as of 7. 9.2022 she had accumulated Kshs. 441,485. 71. claimant wrote to withdraw from Respondent vide a notice given on 31. 7.2022.
2. As at the time of filing suit the Respondent had not refunded the Claimant her monies.Her claim is for:a.The sum of Kshs. 441,485. 71/=b.Interest at commercial rates of 14% per annum from 7th September 2020 until judgment or at such rate and for such period as the tribunal thinks fit.Claimant filed list of documents dated 1. 12. 2022 on 21. 11. 2023 to include:a.A letter by the Claimant dated 31. 5.2022 requesting the Respondent to withdraw and stop monthly deductions.b.A letter by the claimant dated 7th September 2022 requesting the Respondent to remit the total refund of her share and dividends for the year 2022. c.A copy of the demand notice dated 6th October 2022 addressed to the Respondent and certificate of posting in respect thereof.
3. The Respondent filed statement of Defence dated 2. 2.2024. The Defence consisted of not only denials but Respondent stated they were having liquidity issues and had an Annual General Meeting in 2022 which resolved to suspend refunds for a period of 2 years.
4. The matter being one of refunds the same was directed to be dispensed off by way of written submissions.As at the date of writing this judgment Respondent had filed written submission dated 19. 9.2024 filed on 24. 9.2024 and claimant filed written submissions dated 20. 6.2024
5. The issue at hand is whether the Claimant is entitled to the refund.The Respondent stated there was a resolution passed in the Annual General Meeting to suspend payment for 2 years.We note the Annual general meeting and resolution was passed in the year 2022. As such this can no longer be used as the Respondent’s Defence and even that it was still running we (the Tribunal) cannot estop members from getting back their refunds.The Respondent further alludes to the fact that there was mismanagement by the former officials and are inquiry was undertaken which found the directors guilty of misappropriation.This line of argument should not be used to stop any payments due to the claimant.As such we find the Respondent is liable to pay claimant their dues.
6. We have called for further proofs from the Claimants to prove deductions were made out of abundance of caution.The Claimant has provided payslips which show payment/deductions have been.
Upshot 7. We are satisfied with evidence given by Claimant as well as the Respondent admitting Claimant as well as the Respondent admitting Claimant is their member and the only reason they cannot pay is because of the financial constraint.
8. We enter judgment in favour of Claimant against Respondent for kshs.441,485/71 plus costs and interest at Tribunal rates from the date of filing claim.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 27TH DAY OF FEBRUARY, 2025. HON. B. KIMEMIA CHAIRPERSON SIGNED 27. 2.2025HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 27. 2.2025HON. BEATRICE SAWE MEMBER SIGNED 27. 2.2025HON. FRIDAH LOTUIYA MEMBER SIGNED 27. 2.2025HON. PHILIP GICHUKI MEMBER SIGNED 27. 2.2025HON. MICHAEL CHESIKAW MEMBER SIGNED 27. 2.2025HON. PAUL AOL MEMBER SIGNED 27. 2.2025Tribunal Clerk JonahNon appearance by the parties.HON. B. KIMEMIA CHAIRPERSON SIGNED 27. 2.2025