Omwaka v Cosmos Sacco Society Ltd [2025] KECPT 351 (KLR)
- Citation
- [2025] KECPT 351 (KLR)
- Status
- Judgment
- Jurisdiction
- Kenya
- Court
- Cooperative Tribunal
- Panel
- Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Case number
- Tribunal Case 194.E264 of 2023
- Language
- English
More details
- Court
- Cooperative Tribunal
- Panel
- Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Case number
- Tribunal Case 194.E264 of 2023
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Tribunal found that the Claimant had provided sufficient documentary evidence, including a Statement of Account, to prove her entitlement to a refund of Kshs. 733,000 in deposits. The Respondent did not provide any credible evidence to dispute the Claimant's account or demonstrate any liabilities owed by the Claimant. The Tribunal rejected the Respondent's argument that financial difficulties or prior mismanagement could justify withholding the refund, holding that such internal issues are not the responsibility of the member. Since the Sacco remains a going concern and is not under liquidation, it is obligated to refund the Claimant her deposits, less the share capital component. Judgment was therefore entered for the Claimant for Kshs. 718,000 (after deducting Kshs. 15,000 share capital), plus costs and interest.
Court disposition
judgment for the claimant
Orders
- The Respondent shall pay the Claimant Kshs. 718,000 being refund of deposits less share capital.
- The Respondent shall pay costs of the suit to the Claimant.
- The Respondent shall pay interest on the sum awarded until payment in full.
02
Material facts
Parties
Winfred Omwaka
ApplicantCosmos Sacco Society Ltd
RespondentAmounts and remedies
- Deposit Refund Awarded: KES 718,000
- Share Capital Deducted: KES 15,000
03
Procedural history
Posture
Civil Claim / Judgment
04
Questions and positions
Legal issues
- 01
Whether the Claimant is entitled to a refund of her deposits from the Respondent Sacco upon withdrawal as a member.
- 02
Whether the Respondent's financial challenges or alleged mismanagement by previous officials can lawfully justify withholding the Claimant's refund.
Party arguments
- Applicant
- The Claimant argued that she was a member of the Respondent Sacco until her withdrawal on 3/2/2020, at which point she had deposits totaling Kshs. 733,000. She submitted a withdrawal letter and provided a Statement of Account showing her deposits and no liabilities. She sought refund of her deposits, costs, and interest.
- Respondent
- The Respondent denied the claim, contending that the Claimant must prove her entitlement. The Respondent further argued that mismanagement by previous officials and the Sacco's current financial challenges necessitate a forensic audit, and that refunding the Claimant from current members' deposits would be unfair.
05
Court’s reasoning
Legal principles
- 01
Co-operative Societies Act (Cap 490), Section 18
A member who withdraws from a Sacco is entitled to a refund of their deposits, subject to verification of the amount and absence of liabilities.
- 02
General principles of cooperative law and fiduciary duty
Financial mismanagement by officials does not absolve the Sacco from its obligations to members; remedies lie against the officials, not the withdrawing member.
06
Ratio, limits and disposition
Ratio decidendi
The Tribunal found that the Claimant had provided sufficient documentary evidence, including a Statement of Account, to prove her entitlement to a refund of Kshs. 733,000 in deposits. The Respondent did not provide any credible evidence to dispute the Claimant's account or demonstrate any liabilities owed by the Claimant. The Tribunal rejected the Respondent's argument that financial difficulties or prior mismanagement could justify withholding the refund, holding that such internal issues are not the responsibility of the member. Since the Sacco remains a going concern and is not under liquidation, it is obligated to refund the Claimant her deposits, less the share capital component. Judgment was therefore entered for the Claimant for Kshs. 718,000 (after deducting Kshs. 15,000 share capital), plus costs and interest.
Obiter and limits
- The mismanagement by previous officials is a matter for investigation and possible surcharge, but does not affect the rights of a withdrawing member.
- The Sacco's financial challenges are not a valid ground to deny a member their lawful refund.
Court disposition
judgment for the claimant
- The Respondent shall pay the Claimant Kshs. 718,000 being refund of deposits less share capital.
- The Respondent shall pay costs of the suit to the Claimant.
- The Respondent shall pay interest on the sum awarded until payment in full.
Source and reliance status
Cooperative Tribunal
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Judgment reading view
Judgment text
The complete available source text.
Cooperative Tribunal
Judgment
Omwaka v Cosmos Sacco Society Ltd (Tribunal Case 194. E264 of 2023) [2025] KECPT 351 (KLR) (Civ) (26 June 2025) (Judgment)
Neutral citation: [2025] KECPT 351 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Civil
Tribunal Case 194. E264 of 2023
Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
June 26, 2025
Between
Winfred Omwaka
Claimant
and
Cosmos Sacco Society Ltd
Respondent
Judgment
1. Matter for determination is Statement of Claim dated 31/3/2023 filed on even date.Claimant states she was a member of the Respondent Sacco until 3/2/2020 when she wrote a withdrawal letter to get back her refunds. As at the time of withdrawal she claims to have had deposits of Kshs. 733,000/=. Her prayers in the Statement of Claim are:a.The said sum of Kshs. 733,000/=b.Costs of the suit and interest until payment in full.c.Any other relief so deemed appropriate by this Honourable Tribunal.Claimant filled List of Documents dated 31/3/2025 which contained:a.Withdrawalb.Statement
2. Respondent filled statement of Defence dated 12. 12.
2023. The Respondent denied the Claim by the Claimant and states Claimant needs to prove the claim. Further the Respondent avers there was miss management by previous officials and there is need for a forensic audit to be done. It would be unfair to refund the Claimant using the deposits of current members.
3. Matter being one of refund the Tribunal directs that parties to file and serve written submissions to canvas the claim Claimants filled their written submissions dated 24/1/2025 .Respondent filled their written submissions dated 12/3/2025. Having considered the Claim and documents in support and the Respondent Defence as well as the parties documents the issue for determination is whether the Claimant is entitled to her refund of Kshs. 733,000/=.Claimant to prove her claim filled her Statement of Account for Respondent society when it showed she had deposits of Kshs. 733,000/=.In the said Statement of Account, it does not show Claimant having any liabilities. Respondent on the other hand did not contrast the Claimants documents more so the Statement of Account.
4. The Respondent Sacco having financial challenges is not a reason why they should not refund the Claimant their deposits. The mismanagement as well is not business of the Claimant as a member but officials need to take their officials for investigation and maybe later surcharge would follow.The society still being a going concern and not in Liquidation has no reasons why refunds should not be done without deliberating the matter at hand Claimant has filed her documents to support her claim and this Tribunal is convinced of the same that Respondent owe her as much.
Upshot 5. Judgment is entered in favor of Claimant against Respondent for Kshs. 718,000/= less Kshs.15,000/= Share Capital plus costs and interest.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 26TH DAY OF JUNE ,2025. HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 26. 6.2025Hon. Beatrice Sawe Member Signed 26. 6.2025Hon. Fridah Lotuiya Member Signed 26. 6.2025Hon. Philip Gichuki Member Signed 26. 6.2025Hon. Michael Chesikaw Member Signed 26. 6.2025Hon. Paul Aol Member Signed 26. 6.2025Tribunal Clerk A. GechikoWinfred Omwaka presentWanjiru Mwende Advocate – None AppearanceHON. J. MWATSAMA – DEPUTY CHAIRPERSON SIGNED 26. 6.2025
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