[2025] KECPT 190 (KLR)

[2025] KECPT 190 (KLR)

The Tribunal found that the Claimant provided sufficient documentary evidence, including loan application forms and payment guarantees, establishing that he acted as guarantor for the Respondent's loans with Safaricom Sacco. Upon the Respondent's default, the Sacco lawfully deducted Ksh.1,490,319.55 from the Claimant's savings. The Respondent's admission of the Claimant's guarantor status and the absence of evidence disputing the deduction or the underlying guarantee led the Tribunal to conclude that the Claimant was entitled to reimbursement. The Tribunal held that the Claimant had proved his claim on a balance of probabilities and that the Respondent was liable to refund the deducted...

Citation
[2025] KECPT 190 (KLR)
Parties
Applicant: Maxwell Otumba; Respondent: Moses Oduor Omolla
Court
Cooperative Tribunal
Jurisdiction
Kenya
Judgment Date
27 February 2025
Case Number
Tribunal Case E997/928 of 2022
Procedural Posture
Tribunal Claim / Judgment
Outcome
judgment for the applicant
Judges
BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
Legal Topics
Loan Guarantees, Breach of Contract, Sacco Disputes
Source Language
English
Commercial and Corporate Loan Guarantees Breach of Contract Sacco Disputes

Case Brief

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Parties

Maxwell Otumba

Applicant

Moses Oduor Omolla

Respondent

Procedural Posture

Tribunal Claim / Judgment

Legal Issues

  1. 1 Whether the Claimant guaranteed the Respondent's loan with Safaricom Sacco.
  2. 2 Whether the Respondent defaulted on the loan, causing the Sacco to deduct the guaranteed amount from the Claimant.
  3. 3 Whether the Respondent is liable to refund the deducted amount to the Claimant.

Ratio Decidendi

The Tribunal found that the Claimant provided sufficient documentary evidence, including loan application forms and payment guarantees, establishing that he acted as guarantor for the Respondent's loans with Safaricom Sacco. Upon the Respondent's default, the Sacco lawfully deducted Ksh.1,490,319.55 from the Claimant's savings. The Respondent's admission of the Claimant's guarantor status and the absence of evidence disputing the deduction or the underlying guarantee led the Tribunal to conclude that the Claimant was entitled to reimbursement. The Tribunal held that the Claimant had proved his claim on a balance of probabilities and that the Respondent was liable to refund the deducted...

Court Disposition

judgment for the applicant

Orders

  • The Respondent shall refund the Claimant Ksh.1,490,319.55 with interest at Tribunal rates from the date of filing the claim.
  • The Respondent shall pay the costs of the suit to the Claimant.