[2025] KECPT 23 (KLR)
The Tribunal found that the Claimant had sufficiently proved its case for recovery of the outstanding loan amount. The Respondent's acknowledgment of indebtedness and failure to repay or defend the claim, despite multiple demands, established liability. The unsuccessful attempt to realize the security did not...
Source-derived case information.
- Citation
- [2025] KECPT 23 (KLR)
- Parties
- Applicant: Uokoaji Regulated Non WDT Sacco Limited; Respondent: Moses Kamau Muriithi
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 53/E099 of 2018
- Procedural Posture
- Tribunal Claim / Judgment
- Outcome
- Judgment for the Claimant.
- Judges
- BM Kimemia, Janet Mwatsama, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw, PO Aol
- Legal Topics
- Loan Default, Debt Recovery, Security Enforcement
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Uokoaji Regulated Non WDT Sacco Limited
Applicant
Moses Kamau Muriithi
Respondent
Procedural Posture
Tribunal Claim / Judgment
Legal Issues
- 1 Whether the Respondent is indebted to the Claimant for the outstanding loan amount as claimed.
- 2 Whether the Claimant is entitled to recover the outstanding loan balance plus interest and costs from the Respondent.
Ratio Decidendi
The Tribunal found that the Claimant had sufficiently proved its case for recovery of the outstanding loan amount. The Respondent's acknowledgment of indebtedness and failure to repay or defend the claim, despite multiple demands, established liability. The unsuccessful attempt to realize the security did not discharge the Respondent's obligation. The Tribunal held that the Claimant is entitled to judgment for the outstanding loan balance of Kshs. 2,176,910.92, together with interest at Tribunal rates from the date of judgment and costs of the suit.
Court Disposition
Judgment for the Claimant.
Orders
- The Respondent shall pay the Claimant Kshs. 2,176,910.92 plus interest at Tribunal rates from the date of judgment.
- The Respondent shall pay the costs of the suit.
Full Case Text
Judgment text and source record
26 paragraphs
Uokoaji Regulated Non WDT Sacco Limited v Muriithi (Tribunal Case 53/E099 of 2018) [2025] KECPT 23 (KLR) (31 January 2025) (Judgment)
Neutral citation: [2025] KECPT 23 (KLR)
Republic of Kenya
In the Cooperative Tribunal
Tribunal Case 53/E099 of 2018
BM Kimemia, Chair, Janet Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members
January 31, 2025
Between
Uokoaji Regulated Non WDT Sacco Limited
Claimant
and
Moses Kamau Muriithi
Respondent
Judgment
1. The Claimant’s case is based on the Statement of Claim dated 12/2/2024, Claimants Witness Statement dated 12/2/2024, his documents of 12/2/2024 and formal proof dated 3/9/2024. In the Statement of Claim, the Claimant who is a Cooperative Society avers that the Respondent applied for a loan of Kshs. 1,700,000/= repayable in 60 months in equal installments of Kshs. 45,333/=. The amount was disbursed on 29/12/2016.
2. The Claimants avers that the Respondent defaulted in his loan.The Claimant states that they have made several demands to no avail.The Claimant states that the current outstanding loan with the Respondent (by 22/1/2024) to Kshs. 2,176,910/=.
3. In his Witness statement, the Claimant through Mr. Stephen Njoroge, the credit manager of the Claimant explains the beginning of the loan and subsequent defaults.He states that on 9/1/2017, the Respondent wrote to the Claimant acknowledging his indebtedness and committing to repay half of the loan but again he did not keep the promise.
4. The Witness avers that they resorted to selling the security motor vehicle to offset the balance. The Respondent was notified vide email dated 26/8/2017. However the sale was unsuccessful as the said vehicle was impounded in Mombasa. This leaves the Claimant without any avenue of recovering his money.He states that as at 12/1/2024, the loan balance is Kshs. 2,176,910. 92/= and continues to accrue interest.He states that the Respondent has shown total disinterest and refusal to voluntarily repay his loan.
5. The Claimant has filed relevant documents in support of his claim. These documents include the following: Loan Application form for Kshs. 1,700,000/=
Reminder letters from the Claimant to the Respondent, and
Account statements; among others.
On 3/9/2024, this matter came for formal proof where the Claimant Witness adopted his Statement and documents as his evidence in chief.He averred that the Respondent was granted Kshs. 1,7000,000/= loan and that as at January, 2024, the loan balance was Kshs. 2,176,910. 92/= and continues to grow interest at 18% p.a.He averred that the Security vehicle was sold by public auction having been impounded by the police for presence of drugs.
Respondent’s Case. 6. The Respondent wrote to the Claimant on 9/1/2017 acknowledging loan indebtedness and committing to repay half of Kshs. 165,000/= within one-month effective date of his letter.He stated that he had financial challenges that occasioned the default. The Respondent did not respondent to the Claim apart from the letter above.
Analysis. 7. The Claimant has done numerous demand notes and reminders to the Respondent but to no avail.We observe that there is total disinterest on the part of the Respondent. We are of the opinion that the Respondent may have assumed that the loan is not repayable
Conclusion. 8. We observe that the Claimant has adequately prosecuted his case against the Respondent and proved the loan due as Kshs. 2,176,910. 92/= during formal proof. On the other hand, the Respondent has not defended this matter. In view of this situation, we enter judgement in favor of the Claimant against the Respondent for:a.Payment of outstanding loan by the Respondent of Kshs. 2,176,910. 92/= plus interest at Tribunal rates from the date of Judgement.b.Cost of the suit.
JUDGMENT 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 JemimahNo appearance for ClaimantNo appearance for RespondentHON. B. KIMEMIA - CHAIRPERSON SIGNED 31. 10. 2024