[2025] KECPT 253 (KLR)
The Tribunal found that the Claimants had properly withdrawn from the Respondent Sacco by issuing handwritten letters requesting refunds, and the Respondent failed to demonstrate the existence of a required standard format for such notices. The Respondent did not provide evidence of any outstanding liabilities or...
Source-derived case information.
- Citation
- [2025] KECPT 253 (KLR)
- Parties
- Applicant: Lukas Orwa Osoge; Applicant: Roselyn L. Wafula; Respondent: Metropolitan National Sacco Limited
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 50/E050 of 2023
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- judgment for the claimants
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw
- Legal Topics
- Sacco Member Refunds, Share Contribution Disputes, Notice of Withdrawal, Cooperative Societies Act Compliance
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Lukas Orwa Osoge
Applicant
Roselyn L. Wafula
Applicant
Metropolitan National Sacco Limited
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the Claimants are entitled to a refund of their share contributions upon resignation from the Respondent Sacco.
- 2 Whether the Claimants issued proper notices of withdrawal in accordance with the law and the Respondent's by-laws.
- 3 Whether the Respondent's financial difficulties or AGM resolutions can lawfully delay or deny the refund of members' deposits.
Ratio Decidendi
The Tribunal found that the Claimants had properly withdrawn from the Respondent Sacco by issuing handwritten letters requesting refunds, and the Respondent failed to demonstrate the existence of a required standard format for such notices. The Respondent did not provide evidence of any outstanding liabilities or guarantees by the Claimants that would justify withholding the refunds. The Tribunal held that the Claimants' right to a refund was clear under the Sacco Societies Act and the Co-operative Societies Act, which require Saccos to refund members' deposits within sixty days of withdrawal notice. The Respondent's financial difficulties and AGM resolutions could not override statutory...
Court Disposition
judgment for the claimants
Orders
- The Claimants' Statement of Claim dated 23rd January, 2023 succeeds.
- Judgment is entered in favour of the Claimants for the sum of Kshs. 59,321.53 and Kshs. 61,598.88 with costs and interest at Tribunal rates from date of filing claim.
Full Case Text
Judgment text and source record
26 paragraphs
Osoge & another v Metropolitan National Sacco Limited (Tribunal Case 50/E050 of 2023) [2025] KECPT 253 (KLR) (29 April 2025) (Judgment)
Neutral citation: [2025] KECPT 253 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 50/E050 of 2023
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki & M Chesikaw, Members
April 29, 2025
Between
Lukas Orwa Osoge
1st Claimant
Roselyn L. Wafula
2nd Claimant
and
Metropolitan National Sacco Limited
Respondent
Judgment
1. The Claimants were members of the Respondent’s Sacco membership numbers 109218 and 108876 and on 4th and 22nd February, 2022 the Claimants gave the Respondent the requisite notices to pay or refund their deposits, which had a cumulative share contribution of Kshs. 59, 321. 53/= and Kshs. 61, 598. 88/= by the dates of their resignation.
2. That the Respondent failed, neglected and or refused to refund the Claimants their share contribution in breach of the Respondent’s by-laws despite demand made, necessitating the filing of this Statement of Claim dated 23rd January, 2023 for recovery of the sum of Kshs. 59, 321. 53/= and Kshs. 61, 598. 88/= plus interest from 23rd January, 2023 until payment in full.
3. The Respondent filed their Statement of Defence dated 6th March, 2023 stating among others that:i.The Claimant has not proved or sufficiently established that the Respondent is in possession of his shares, savings and or deposits and without prejudice has not met the condition for a refundii.As per the Respondent’s resolutions at their 2019 Annual General Meeting, members resolved and agreed to put refunds on hold until the liquidity challenges faced by the Respondent ceases and which the liquidity problems are facts which are well within the Claimants knowledgeiii.The Respondent never received the Claimants notices of withdrawal and the Claimants demand notices do not conform to the statutory notice envisaged under the Co-operative Societies Act, Rules and the Respondent’s by-lawsiv.The Respondent has been through so much turmoil and financial challenges and is overwhelmed by various applicants seeking to withdraw from the Society as a result of mismanagement by previous committeev.In response to the numerous cases of withdrawal by its members, it requires and it is necessary to have a more structured approach to handle the outstanding matters, failure to which the existence of the society is uncertain
4. This Tribunal on 5th August, 2024 gave directions for the Respondent to file and serve their Witness Statement, Statement of Accounts and other documents within fourteen days and for the parties to file their written submissions.
5. Both the Claimants and the Respondents had not filed their written submissions by the time of writing this judgement.
6. Have the Claimants sufficiently proved their claim on a balance of probabilities and are they entitled to a refund?
7. We note that the Claimants did properly withdraw from the Respondent by issuing their handwritten letters dated 4th and 22nd February, 2022 for refunds of their savings formally, and the Respondent has not produced anything to show that there is a standard format for notice of withdrawal from the SACCO, and as such, the said letters by the Claimants constitute proper Notices of Withdrawal and request for refunds.
8. The Respondent has pleaded liability on the part of the 1st Claimant in terms of guarantees to other members but has not attached any documentation to persuade this Tribunal of the existence of the same, and in as much as we sympathize with the Respondent’s financial situation, we are also alive to the fact that members have a right to their deposits. The Co-operative Societies Act is clear on the concept of voluntary membership to a Co-operative Tribunal, and as long as a Co-operative society is in operation, it is expected to honor its obligations to its members. The Legal Notice No. 82 (The Sacco Societies Act) at Section 21 (6) is also clear to the effect that:“A non-deposit-taking Sacco society shall refund to a member the amount accumulated in the member's non-withdrawable account within sixty days of receiving the written notification of the member to withdraw from membership of the Sacco society.”
9. The Claimants produced their Statements of Accounts and the Respondent did not dispute the amounts owed, and this Tribunal is inclined to believe that the Respondent owes the Claimants Kshs. 59, 321. 53/= and Kshs. 61, 598. 88/= in refunds.Final Ordersi.The Claimants Statement of Claim dated 23rd January, 2023 succeeds.ii.Judgment is entered in favour of the Claimants for the sum of Kshs. 59, 321. 53/= and Kshs. 61, 598. 88/= with costs and interest at Tribunal rates from date of filing claim.
JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 29TH DAY OF APRIL, 2025. HON. B. KIMEMIA - CHAIRPERSON SIGNED 29. 4.2025HON. J. MWATSAMA - DEPUTY CHAIRPERSON SIGNED 29. 4.2025HON. BEATRICE SAWE - MEMBER SIGNED 29. 4.2025HON. FRIDAH LOTUIYA - MEMBER SIGNED 29. 4.2025HON. PHILIP GICHUKI - MEMBER SIGNED 29. 4.2025HON. MICHAEL CHESIKAW - MEMBER SIGNED 29. 4.2025Tribunal Clerk JemimahMs. Munyua holding brief for Gichuhi advocate for Claimants.No appearance for Respondent