[2025] KECPT 323 (KLR)

Nyumba Regulated Sacco Society Limited v Ndirangu (Tribunal Case 988/E1038 of 2022) [2025] KECPT 323 (KLR) (12 June 2025) (Judgment)

Neutral citation: [2025] KECPT 323 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 988/E1038 of 2022

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

June 12, 2025

Between

Nyumba Regulated Sacco Society Limited

Claimant

and

Simon Maina Ndirangu

Respondent

Judgment

1. The Claimant is based on the Statement of Claim dated 16/12/2022 wherein the Claimant is claiming for Kshs 897,717. 17/= being over paid amounts from loan repayments.The Claimant avers that he has tried to get this refund from the Respondent without success.The Claimant used his Statement of Claim as his witness statement.This claim is supported by documents vide his letter dated on 16. 12. 2022The case came up for hearing on 12/11/2024 where the Claimant submitted that he was a member of the Respondent since 2013 and benefited from several loans between 2013 and 2015. The Claimant avers that his emergency loan was overpaid.Further the Claimant states that the Respondent reported him to CRB despite the Respondent having the Claimants three title deeds.He admitted receiving several letters from the Respondent and that he was to repaying his loans but was not sure of the loan balance.

2. He avers that some Kshs 100,000/- was debited from his account being consolidation fee and that his three titles with the Respondent were taken from him under duress.

3. In his written submissions dated 14/2/2025 the Claimant states that he is a member of the Respondent and had benefited with three loans form the Respondent.The Claimant takes issues with the accuracy of his loan statement with the Respondent and states that he does not owe the Respondent Kshs .826,786/- as alleged by the Respondent. The Claimant seeks a refund of Kshs 897,717/= allegedly being an over recovery by the Respondent.The Respondent’s case is instituted through the response to the Statement of Claim dated 23/2/2023 wherein the Respondent maintains that the Claimant has defaulted on his loans with the Respondent.

4. The Respondent admits that upon continued defaulting by the Claimant they recovered Kshs 1,176,197/- from guarantors for the normal loan and Kshs 1,097,165/= for the commercial loan hence settling both loans.The Respondents states that they have been unable to recover the balance of the emergency loan a total of Kshs 826,785. 24/- in their witness statement dated 20. 11. 2024 the Respondent through their Credit Collection Officer Ms. Emily kabuthia enumerated the three loans given to the Claimant and their terms she states that the Claimant defaulted on his loans as follows:-- Emergency loans Kshs 826,781/= -11/11/2022- Normal loan Kshs 1,176,197/- - 30/9/2020- Commercial loan --Kshs 1,097,165/---30/9/2020The Respondents admits that the guarantors of the commercial and Normal loans cleared both loansThe Respondent has filed under paragraph 9 workings on each loan given to the claimant challenging the accuracy of the Claimant calculations in the Statements of Claim the Respondent prays for Kshs 826,785. 24/- being outstanding loan which the Claimant has defaulted

5. The Respondent has filed documents dated 23/2/2023 in support of the Defence case. These documents include the Claimant’s loan statement Respondent’s workings herein and cheque which were later bounced particulars from the Claimant.

6. During the hearing of the Defence case on 29/1/2025 they stated that the Claimant was their member and was a vice chair of the Sacco upto 2019She admitted that the Claimant’s normal and commercial loans were fully recovered from the guarantors in 2020 and that none of the guarantors have complained to the Sacco.She averred that the emergency loan was defaulted to the tune of Kshs 826,000/- she stated that the Sacco owes the Claimant nothing.During clarification the Respondent admitted that the Claimant twice requested for restructuring of his loan.

7. In their written submissions dated 7/3/2025 the Respondent have enumerated the status of the Claimant’s loans which reflect a loan balance of Kshs 826,785. 24 for the emergency loan the Respondent states that they filed case CTC 988/E1038 of 2022 for Kshs 826,785. 24 while the Claimant filed CTC 966/E1042 of 2022 for an over-recovery of Kshs 897,717. 17/= and that both suits were heard concurrently.The Respondent states that the Claimant’s calculations were erroneous.As regards the Claimants title deeds held by the Respondent the same were voluntarily given by the Claimant as alien.The Respondent admitted listing the Claimant with CRB.

AnalysisThe gist of the suit is the emergency loan granted to the Claimant on 1/1/2016 and which the Respondent allege that the loan was last paid on 25/11/2022 the Respondent alleges that the outstanding loan balance as at 25/11/2022 stood at Kshs 826,785. 24/=

8. The Claimant has admitted defaulting in the emergency loan in 2020 due to covid but disputes the figure by the Respondents.The said emergency loan of Kshs 1,250,000/- was to be repaid in 6 months at 12% interest.The Respondent has filed evidence of Claimant bounced cheques towards repayment of the loan a situation not denied by the Claimant.

9. We observe that the primary documents used by the Claimant in calculating his claim of overpayment are from the Respondent. The Respondent primary documents are similarly from the Sacco.The contention is therefore not the source of documents but rather how the interest computation is done by each party .The Claimant has not filed evidence of emergency loan repayments, especially the Kshs 450,000/- allegedly repaid by the Claimant. we believe that the Sacco (Respondent) member statements filed in this Tribunal are credible enough and that the loan balance computation is as guided by the existing loan regulations.

10. We also note the Claimant having been an official at the Respondent Sacco for 10 years would familiar with the loan policy and regulations of the Respondent.This Tribunal is invited to determine whether the Claimant’s emergency loan was repaid by the Claimant and if not, how much is outstanding.

11. We are also invited to determine which of the loan balance computations by the Claimant and the Respondent is credible as per the Respondent’s loan policy and regulations.Based on the evidence availed by the claimant including the Claimants witness statements the hearing of the Claimant’s case the documents filed and their written submissions.

12. We find that the Claimant’s case was not adequately prosecuted to prove beyond any reasonable doubt the claim of Kshs 897,717. 17/- from the RespondentThe method used by the Claimant to calculate the over payment was challenged by the Respondent and a counter calculation filed.On the other hand, we find that the Respondent has provided members’ Statement of the Claimant detailing the Claimants emergency loan status this satisfying this Tribunal that the Respondent is owed Kshs 826,785. 24/= by the ClaimantWe find that the Claimants case lacks merit and therefore in the balance of probability enter Judgement in favour of the Respondent against the Claimant and order as follows:a.Claimant pays Respondent Kshs 827,785. 24/= being outstanding loan balance owed to the Respondent.b.Costs to the Respondent.

Counter - Claim 13. We find that the Respondent has adequately prosecuted the counter claim to the satisfaction of this TribunalThe Respondent has filed member’s statements of the Claimant which clearly show that the Claimant owed the Respondent the claim amount

14. In view of the evidence produced in this Tribunal we find that the Counter -claim has merit and therefore order as here under.a.The Claimant’s case is not merited and as such the Claimant’s case in E1042/2022 is dismissed with costs to the Respondent.b.Claimant to pay Respondent Kshs 827,785. 24/= being the outstanding loan balance.c.Judgment applies to E1038/2022.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 12TH DAY OF JUNE, 2025. HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 12. 6.2025HON. BEATRICE SAWE - MEMBER SIGNED 12. 6.2025HON. FRIDAH LOTUIYA - MEMBER SIGNED 12. 6.2025HON. PHILIP GICHUKI - MEMBER SIGNED 12. 6.2025HON. MICHAEL CHESIKAW - MEMBER SIGNED 12. 6.2025HON. P. AOL - MEMBER SIGNED 12. 6.2025Tribunal Clerk MutaiKogi advocate for Claimant;Ms. Mongare advocate for RespondentMs. Mogare : We request for a copy of Judgment.Kogi advocate : We pray for 45 days stay of execution and copy of the JudgementMongare advocate: We are not opposed to 30 daysTribunal Order- 30 days stay of execution granted- Judgement shall be uploaded within requisite time frame.- Proceedings Counsel to formally request.HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 12. 6.2025