[2025] KECPT 184 (KLR)
The Tribunal found that the claimant had established, on a balance of probabilities, his entitlement to a refund of Kshs. 233,314 as his deposits with the respondent SACCO. The respondent failed to provide any evidence of outstanding loans or guaranteed obligations by the claimant, despite being directed to do so....
Source-derived case information.
- Citation
- [2025] KECPT 184 (KLR)
- Parties
- Applicant: Charles Shiundu Nanjira; Respondent: Metropolitan National Sacco Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E522 of 2024
- Procedural Posture
- Civil Claim / Judgment
- Outcome
- judgment for applicant
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Sacco Member Refunds, Liquidated Demands, Voluntary Withdrawal Rights, Burden of Proof
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Charles Shiundu Nanjira
Applicant
Metropolitan National Sacco Limited
Respondent
Procedural Posture
Civil Claim / Judgment
Legal Issues
- 1 Whether the claimant is entitled to a refund of his deposits/savings upon withdrawal from the respondent SACCO.
- 2 Whether the respondent proved that the claimant had outstanding loans or guaranteed loans that would justify withholding the refund.
- 3 Whether an Annual General Meeting resolution can lawfully suspend a member's statutory right to refund.
Ratio Decidendi
The Tribunal found that the claimant had established, on a balance of probabilities, his entitlement to a refund of Kshs. 233,314 as his deposits with the respondent SACCO. The respondent failed to provide any evidence of outstanding loans or guaranteed obligations by the claimant, despite being directed to do so. The Tribunal rejected the respondent's reliance on an unfiled Annual General Meeting resolution to suspend refunds, holding that such a resolution cannot override statutory rights or the Tribunal's jurisdiction. The Tribunal emphasized that the right to voluntary withdrawal and refund of deposits is fundamental to SACCO membership, and the respondent's financial difficulties or...
Court Disposition
judgment for applicant
Orders
- The respondent shall refund the claimant Kshs. 233,314 being his deposits/savings.
- The respondent shall pay interest at Tribunal rates from the date of filing suit.
Full Case Text
Judgment text and source record
27 paragraphs
Nanjira v Metropolitan National Sacco Limited (Tribunal Case E522 of 2024) [2025] KECPT 184 (KLR) (Civ) (27 February 2025) (Judgment)
Neutral citation: [2025] KECPT 184 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Civil
Tribunal Case E522 of 2024
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
February 27, 2025
Between
Charles Shiundu Nanjira
Claimant
and
Metropolitan National Sacco Limited
Respondent
Judgment
1. This judgement is originated by a Statement of Claim dated 26/6/2024 filed by the Claimant on 4/7/2024 seeking for judgement against the Respondent for;a.Refund of Kshs. 233,314/= being his deposit/savings.b.Interest on (a) above.c.Cost of this suit.d.Any other relief that the Tribunal may deem fit.
2. In the Statement of Claim ,the Claimant states that he was a member No.40711 of the Respondent and before he withdrew his membership in February 2024, he had made deposits/savings which he sought to be refunded.
3. The Respondent field a Memorandum of Appearance on 15/7/2024 and subsequently filed a statement of defence dated 24/7/2024 on 30/7/2024. The Defence Statement denied every claim of the Claimant including an observation that the Claimant has not proved that he has cleared or paid all his outstanding loans and the members whom he had guaranteed loans had repaid their loans fully.
4. Further ,the Respondent provided a scenario where they state that the society has gone through turmoil financially as a result of mismanagement by previous committee. This was emphasized in the respondents w/sub that brought out an issue of suspension of all members refunds through an Annual General Meeting resolutions dated 21/4/2022.
Analysis And Determintaion. 5. It is not in despite that the claimant was a member of the Respondent and on record is the claimants letter of withdrawal dated 5/2/2024 and a copy of member statement printed on 16/4/2024 which show a balance of Ksh 233,314/=
6. The Respondent made sweeping denials in their Statement of Defence without filing evidence that the Respondent has an outstanding loan or had guaranteed another member, the Tribunal fund it not tenable to analyse generalities which lead nowhere.
7. In its written submissions, the respondent clung to the only straw of denying members their refunds by arguing that there is an Annual General Meeting resolution which was paned on 21/4/2022 to put on hold members refunds. This resolution was not filed. This tribunal pronounced itself in the case of metropolitan national sacco ltd vs Rotich civil appeal 229 of 2021 and stated,“that the Tribunals jurisdiction cannot be ousted by a resolution of the sacco’’.As much as we sympathise with the financial challenges faced by respondent, one thing that stands out is that the SACCO has not been liquidated.
8. The matter in issue is about a members refund which is his undeniable right. The issue of voluntary withdrawal is equally a right of member as exposed from a sacco as the1st principle of Co-operatives.The Claimant exercised his right of withdrawal and demanded to be refunded his deposits as long as the respondent sacco is in existance. It is expected to honour its obligations to her members.
9. On record, the Tribunal directed the Respondents on 21/8/2024 to provide evidence of the members whom the claimant guaranteed including all the details of the loans . since the Respondents did not file any information regarding the loans alleged to have been guaranteed by the claimant, we find that this line of defence does not hold any water.While under paragraph 5 of the Statement of Claim, the Claimant stated:‘’that at the time of resigning the claimant had cleared all his loans with the respondents sacco and had not guaranteed any loans taken by any member of the sacco’’.The Respondent did not controvert this statement by filing some documentary proof to the contrary.It is therefore our finding that on a balance of probability the amount claimed of Kshs. 233,314/= by the Claimant remains unchallenged and remains his right to be refunded.
10. This being a liquidated demand for the refund of a specified sum of deposits claimed by the claimant, the tribunal stands by the statement/phrase in the book of Matthew 22:21 which says ‘’give to Caesar what belongs to Caesar’’ consequently, we order the respondent to give to the claimant what belongs to him.
11. In a nutshell, we find merit in the Claimants claim hence either judgement in favour of the Claimant against the Respondent for refund of Kshs. 233,314/= plus costs and interest at Tribunal rates from date of filing suit.
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. 2.2025Tribunal Clerk JonahWafula advocate for ClaimantNo appearance for RespondentHon. B. Kimemia Chairperson Signed 27. 2.2025