[2024] KECPT 1705 (KLR)
The tribunal found that the claimant had sufficiently proved its case through documentary evidence and witness testimony, establishing that the respondent had defaulted on the loan repayment. The respondent admitted to the loan and the default, attributing the latter to the Covid-19 pandemic, but failed to honor his...
Source-derived case information.
- Citation
- [2024] KECPT 1705 (KLR)
- Parties
- Applicant: P.C.E.A Kayole Regulated Non-Wdt Sacco Society Ltd; Respondent: Sammy Kagiri Muraguri
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 312/E411 of 2022
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- Judgment for the claimant.
- Judges
- BM Kimemia, J. Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Loan Default, Debt Recovery, Covid19 Financial Impact
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
P.C.E.A Kayole Regulated Non-Wdt Sacco Society Ltd
Applicant
Sammy Kagiri Muraguri
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the respondent defaulted on the loan repayment as alleged by the claimant.
- 2 Whether the claimant is entitled to recover the outstanding loan amount, interest, and costs from the respondent.
Ratio Decidendi
The tribunal found that the claimant had sufficiently proved its case through documentary evidence and witness testimony, establishing that the respondent had defaulted on the loan repayment. The respondent admitted to the loan and the default, attributing the latter to the Covid-19 pandemic, but failed to honor his commitment to repay or appear at the hearing. The tribunal held that the claimant was entitled to judgment for the outstanding sum, interest, and costs, as the respondent's explanations did not negate the debt or the claimant's right to recover it.
Court Disposition
Judgment for the claimant.
Orders
- Judgment entered in favor of the claimant for Kshs. 751,346.00 plus costs and interest at tribunal rates from the date of filing the claim.
Full Case Text
Judgment text and source record
20 paragraphs
P.C.E.A Kayole Regulated Non-Wdt Sacco Society Ltd v Muraguri (Tribunal Case 312/E411 of 2022) [2024] KECPT 1705 (KLR) (31 October 2024) (Judgment)
Neutral citation: [2024] KECPT 1705 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 312/E411 of 2022
BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
October 31, 2024
Between
P.C.E.A Kayole Regulated Non-Wdt Sacco Society Ltd
Claimant
and
Sammy Kagiri Muraguri
Respondent
Judgment
1. The Claimant’s case is based on the claimant’s statement of Claim dated 22/6/2022, his Witness Statement, his documents dated 22/6/2022 and the hearing of his case on 18/7/2024. In his Statement of Claim, the Claimant avers that the Respondent applied for a loan and the same was advanced and that the Respondent owes the Claimant Kshs. 751,364/= being principle and interest accrued.The Claimant states that despite demand notices being made to the Respondent, no repayments have been made.
2. In the Claimant Witness Statement, the Claimant states that the Respondent had not kept his promise to repay the loan balance. The Claimant has filed the following documents in support of his Claim: -i.Respondent’s member Statements – Loan and Savings.ii.Respondent’s Application for membership.iii.Loan demand letters.The Claimant’s case was heard on 18/7/2023 wherein the Claimant’s Witness Mr. Benson Kihara, the Chief Executive Officer of the Claimant adopted his Witness Statement dated 22/6/2022 and his documents of 22/6/2022 as his evidence in chief. He stated that the Respondent was a member of the Claimant Sacco and that the Claimant was given Kshs. 1,900,000/= which he initially repaid but later defaulted. At the time of hearing of this case, the Respondent owed the Claimant Kshs. 507,152/=. He prayed that the Respondent case be dismissed with costs. Respondent’s Case.The Respondent’s case is based on the following: -i.Statement of Defence dated 3/8/2022ii.Respondent Witness Statement dated 3/8/2022, andiii.Respondent’s documents dated 3/8/2022.
3. In his Defence, the Respondent admits that he was given a loan by the Claimant but denies defaulting in the repayment.He states that he has all along kept the Claimant appraised of his efforts to repay his loan.In his Witness Statement, the Respondent admits selling a loan of Kshs. 1,950,000/= on 19/10/2017. He states that his business was adversely affected by Covid-19 occasioning his loan default.He promises that he can be repaying Kshs. 20,000/= per month.He avers that he has been a faithful member of the Sacco until the Covid-19 menace.The Respondent has also filed a loan Statement with the Claimant and his passbook records.The Respondent was not present during the hearing of the case on 18/7/2024.
Analysis. 4. We not that the Claimant has adequately prosecuted its case. The Claimant has produced enough documents to prove that the Respondent has defaulted in his loan repayment.On the other hand, the Respondent has admitted he has defaulted, citing Covid-19 as the reason.We observe that the Respondent has not honored his commitment to repay the loan. We also observe that during the mention of the case on 24/1/2023 and 3/4/2023, there were indications of a consent but this did not materialize.We also note that the Respondent was not in Court during the hearing of this matter on 18/7/2024.
5. It is on record that in his Witness Statement dated 3/8/2022, the Respondent had committed to repay Kshs. 20,000/= per month towards his loan repayment. Conclusion.Since the claim is well prosecuted and not denied by the Respondent, we enter judgement in favor of the Claimant against the Respondent for:a.Kshs. 751,346. 00/= plus costs and interest at Tribunal rates from the date of filing claim.
RULING SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 31ST DAY OF OCTOBER, 2024. Hon. B. Kimemia - Chairperson Signed 31. 10. 2024Hon. J. Mwatsama - Deputy Chairperson Signed 31. 10. 2024Hon. Beatrice Sawe - Member Signed 31. 10. 2024Hon. Fridah Lotuiya - Member Signed 31. 10. 2024Hon. Philip Gichuki - Member Signed 31. 10. 2024Hon. Michael Chesikaw - Member Signed 31. 10. 2024Hon. Paul Aol - Member Signed 31. 10. 2024Tribunal Clerk JemimahOpiyo for ClaimantClaimant presentNo appearance for RespondentHon. B. Kimemia - Chairperson Signed 31. 10. 2024