[2025] KECPT 353 (KLR)

[2025] KECPT 353 (KLR)

The Tribunal held that it has jurisdiction to hear and determine the dispute as it arises from the business of a co-operative society, specifically the recovery of money deducted from guarantors by a Sacco to satisfy a defaulted loan. The Tribunal found that the claim falls squarely within the meaning of a co-operative dispute under section 76 of the Co-operative Societies Act, as it involves members of the Sacco and relates to its business operations. The Tribunal rejected the argument that such disputes are the preserve of the commercial courts, citing statutory provisions and case law that mandate such disputes be adjudicated by the Co-operative Tribunal. The preliminary objection was...

Citation
[2025] KECPT 353 (KLR)
Parties
Applicant: Stella Mweni; Respondent: Miriam Kerubo
Court
Cooperative Tribunal
Jurisdiction
Kenya
Judgment Date
26 June 2025
Case Number
Tribunal Case 183/ E283 of 2024
Procedural Posture
Preliminary Objection / Ruling on Preliminary Objection Regarding Tribunal Jurisdiction
Outcome
Preliminary objection dismissed; Tribunal affirms jurisdiction to hear the claim.
Judges
Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
Legal Topics
Cooperative Societies Disputes, Jurisdiction of Tribunal, Guarantor Liability, Loan Default Recovery
Source Language
English
Civil Procedure Commercial and Corporate Cooperative Societies Disputes Jurisdiction of Tribunal Guarantor Liability Loan Default Recovery

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Parties

Stella Mweni

Applicant

Miriam Kerubo

Respondent

Procedural Posture

Preliminary Objection / Ruling on Preliminary Objection Regarding Tribunal Jurisdiction

Legal Issues

  1. 1 Whether the Co-operative Tribunal has jurisdiction under section 76 of the Co-operative Societies Act to hear and determine the dispute.
  2. 2 Whether the claim constitutes a dispute within the meaning of section 76 of the Co-operative Societies Act.
  3. 3 Whether disputes regarding recovery of money deducted from guarantors by a Sacco to satisfy a defaulted loan fall within the jurisdiction of the Co-operative Tribunal or the commercial courts.

Ratio Decidendi

The Tribunal held that it has jurisdiction to hear and determine the dispute as it arises from the business of a co-operative society, specifically the recovery of money deducted from guarantors by a Sacco to satisfy a defaulted loan. The Tribunal found that the claim falls squarely within the meaning of a co-operative dispute under section 76 of the Co-operative Societies Act, as it involves members of the Sacco and relates to its business operations. The Tribunal rejected the argument that such disputes are the preserve of the commercial courts, citing statutory provisions and case law that mandate such disputes be adjudicated by the Co-operative Tribunal. The preliminary objection was...

Court Disposition

Preliminary objection dismissed; Tribunal affirms jurisdiction to hear the claim.

Orders

  • The preliminary objection dated 4th June, 2024 is dismissed for lack of merit.
  • The Tribunal has jurisdiction to hear and determine the claim.