[2025] KECPT 302 (KLR)

Mwathi v Bacista Savings & Credit Cooperative Society (Tribunal Case 454 of 2020) [2025] KECPT 302 (KLR) (29 May 2025) (Judgment)

Neutral citation: [2025] KECPT 302 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 454 of 2020

BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki & PO Aol, Members

May 29, 2025

Between

Timothy Mwaura Mwathi

Claimant

and

Bacista Savings & Credit Cooperative Society

Respondent

Judgment

1. The matter for determination is a Statement of Claim dated 5th October 2020. In the Statement of Claim, the Claimant claims that he was a member of the Respondent, member number 0124. He claims that he resigned as a member of the society on 11th August 2020 and that at the time of resignation he had accumulated shares worth Kshs. 573,000/=. That he had also taken a loan worth Kshs. 700,000, which he had made substantial payments prior to hi resignation. That upon resignation e wrote to the Claimant t have them balance off the outstanding loan amounts against the shares and inform him if there is any outstanding liability. That despite all this the Respondent is yet to act. The Claimant is aggrieved and prays for :a.That the Respondent does issue the Claimant with a true statement of accounts indicating the claimant’s shares and the balance of the loan amounts.b.An order directing the respondent to deduct the claimant’s loan balance from his shares and the balance if any be paid within ninety days by the claimant.c.Costs of this suit.The Claimant filed a witness statement and a List of Documents in support of their claim.

2. The Respondent did not enter an appearance or file any response to the Claim. An interlocutory judgment was entered on 6th June 2023.

3. The Claimants case was heard on 8th August 2023. In his testimony the Claimant informed this Tribunal that he resigned from the Sacco and that he has no Statement of Account as the same has never been availed. He informed this court that he is praying for the Statement of Accounts and a refund of his shares. This court then ordered the Respondent to file and serve the Statement of Accounts for the deposits, shares and the loan of the Claimant within 21 days of 6th June 2023. The document, the Claimants loan statement, were filed through the Claimant.

Analysis 4. The question before this Tribunal is whether the Claimant is entitled to the relief sought, to wit, an order directing the Respondent to deduct the Claimant’s loan balance from his shares and the balance if any be paid within ninety day by the claimant. The first prayer was dispensed with in the Tribunal’s order of 6th June 2023.

5. To answer this question, the Tribunal has to inquire into the evidence adduced by the Claimant in support of his Claim. The Claimant informed this court that he resigned from the Respondent on 11th August 2020, and the time of resignation he had shares with the Respondent, and also a loan liability. The Claimant, in his Claim told this court that at the time he exited the Respondent, he had a deposit of Kshs. 573,000. 00. he also informed this court that the Respondent continued to deduct deposits from his salary and that at the moment, the deposits stand at Kshs. 657,555/-. This amount is confirmed by the Claimant’s financial statement sent by the Respondent. This amount is, therefore, not disputed.

6. As regards the loan amount due, the Claimant claims that he took out a loan of Kshs. 700,000/- and that he had made substantial repayments. According to the statement provided by the Respondent, the Claimant was given a loan totaling to Kshs. 700,000/= between July and August 2020. As at September 2021, the outstanding loan is Kshs. 432,386/=. This amount has been submitted by the Claimant, and hence it is not disputed.

7. The Claimant resigned from the Respondent, and the Respondent acknowledged the resignation via a letter dated October 16, 2018, in which they advised the Claimant to wait for his dues 60-90 working days from the date of withdrawal. This Tribunal notes that it is now over six years since the letter was written, and the Claimant’s dues have not been processed. It indeed took this Tribunal’s order for the Respondent’s to supply the Claimant with his statement, despite being a right of every member to get a statement of account with regards to their accounts. The Claimant is entitled to his deposits once he resigned from the respondent, and since he also had a loan, it is only fair that the same be balanced and he be paid the difference, if any.

8. The Upshot is that we find Claimant’s Claim merited, and make the following orders. Judgment is entered in favour of Claimant against Respondent.a.An immediate refund of Kshs. 225,169/- being the surplus after balancing the deposits with the loan due/-b.The Claimant is awarded costs and interest on the decretal sum from the time of filing suit till payment in full.

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. 5.2025****Tribunal Clerk MutaiJudgment delivered in absence of partiesLater : Ms. Oginda advocate for the 1st Respondent.