https://new.kenyalaw.org/akn/ke/judgment/kecopt/2026/237
The Tribunal found it undisputed that the Claimant was a member and had deposits of Kshs. 486,610.16 against a loan of Kshs. 175,981.00, leaving a net amount due of Kshs. 368,129.00. The Respondent's reliance on an unspecified refund-suspension resolution was insufficient because its time frame and continuing...
Source-derived case information.
- Citation
- [2026] KECOPT 237 (KLR)
- Parties
- Claimant: Susan Wanjiku; Respondent: Metropolitan National Sacco Ltd
- Court
- Cooperative Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E594 of 2023
- Procedural Posture
- Cooperative Tribunal Claim / Judgment
- Outcome
- Judgment entered partly for the Claimant.
- Judges
- ["J Mwatsama", "B Sawe", "F Lotuiya", "M Chesikaw", "PO Aol"]
- Legal Topics
- Member Savings Refund, Loan Offset Upon Withdrawal, Dividends Claim, SACCO AGM Resolutions, Proof of Entitlement
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Susan Wanjiku
Claimant
Metropolitan National Sacco Ltd
Respondent
Procedural Posture
Cooperative Tribunal Claim / Judgment
Legal Issues
- 1 Whether the Respondent owed the Claimant the net balance of her deposits after offsetting the loan facility.
- 2 Whether the Respondent could rely on an AGM resolution suspending refunds to defeat the Claimant's claim.
- 3 Whether the Claimant proved entitlement to unpaid dividends.
Ratio Decidendi
The Tribunal found it undisputed that the Claimant was a member and had deposits of Kshs. 486,610.16 against a loan of Kshs. 175,981.00, leaving a net amount due of Kshs. 368,129.00. The Respondent's reliance on an unspecified refund-suspension resolution was insufficient because its time frame and continuing validity were not shown. The Tribunal therefore entered judgment for the Claimant on the refund claim, but dismissed the dividends claim for want of proof.
Court Disposition
Judgment entered partly for the Claimant.
Orders
- The Respondent shall pay the Claimant Kshs. 368,129.00.
- The Claimant is awarded costs.
Full Case Text
Judgment text and source record
1 paragraphs
**REPUBLIC OF KENYA** **IN THE COOPERATIVE TRIBUNAL AT NAIROBI** **TRIBUNAL CASE NO. E594 OF 2023** **(Coram: Hon. J. Mwatsama- Ag. Chairperson, Hon. B. Sawe- Member, Hon. F. Lotuiya- Member, Hon. M. Chesikaw- Member and Hon. P. Aol- Member.)** **SUSAN WANJIKU……………………………………………………..CLAIMANT** **VERSUS** **METROPOLITAN NATIONAL SACCO LTD………………………RESPONDENT** **JUDGEMENT** 1. The matter for determination is Statement of Claim dated 7.8.2023 where the Claimant avers she was a member of Respondent Society. She avers she joined Society in the year 2007 and withdrew her membership in the year 2023. Claimant avers she had savings of Kshs.544,110.16 less loan amount of Kshs.175,981.00. Despite Notice the Respondent has refused to reimburse her savings. 2. The Claimant Prayers are for: 3. **Respondent to pay Kshs. 368.129.00** 4. **Kshs. 10,800.00 unpaid dividends for 3 years** 5. **Cost of proceedings** 6. **Interest on a and b above** The Claimant filed List of Documents dated 7.8.2023 to support the Claim which included: 1. Copy of Demand 2. Copy of Claimants pay slip 3. Copy of Claimants National Identification card 4. The Respondent filed Statement of Defence dated 22.12.2023 where he claimed Claimant had not established Respondent was in possession of the savings. Respondent aver that there was a Resolution in an Annual General Meeting where it was agreed all refunds were to be suspended to allow the Society achieve financial soundness. The whole Claim was denied. The Respondent to support this Defence filed List of Documents dated 13.11.2024 which documents included: 5. Annual General Meeting Resolutions Stopping Refunds. 6. Statement of Account 7. Audited Accounts of Metropolitan 8. Affidavit of Means The Respondent filed Witness Statement for the Respondent Chief Executive Officer. The Claimant filed Reply to Defence dated 14.10.2024 where Claimant intimated Defence was full of mere denials and Defence ought to be struck out. 1. Claimant as at the date of writing this judgement had not filed Written Submissions, while the Respondent filed Written Submissions dated 13.11.2024. Having considered the Pleadings by both Claimant and Respondent, it is not in dispute that the Claimant was a Member of the Respondent Society. It is also not in dispute that there were savings made as per the Claimant List of Documents dated 7.8.2023 where Document 1 shows the Claimant’s pay slip March 2023. The said document clearly indicates the Claimant had Kshs. 486,610.16 in deposits and a pending loan of Ksh.175,981.00. The Claimant is not denying the loan advanced to her. The question/issue would be, how much does the Respondent owe the Claimant? On withdrawal from the Society she wants her savings to be used to offset the loan and she receives the balance. 1. The Respondent in their Defence refer to a Resolution by Society to suspend refunds. However, it is not clear the time frame for the Resolution and if is still subsists or not. We are alive to the fact that the Respondent Society has financial challenges however, it would be unfair to have the Claimant aware indefinitely for her refund. She saved diligently from the year 2007 only for her to be informed the same cannot be repaid when she has withdrawn. The Society still operates and as such no justifiable reason has been given to compel Tribunal not to enter judgement in favour of the claimant. 2. The issue of divided also has to be determined. Dividends declared are deemed so in any Society’s Annual General Meeting. The Audited Accounts would show evidence of dividends payable. The Claimant has not produced the Respondent Society audited accounts which can easily be retrieved. With no proof of dividend payment, the prayer for dividends fails. **UPSHOT** 1. Judgment is entered in favour of the Claimant against Respondent for Kshs.368,129.00 plus cost and interest. Judgement dated and delivered *virtually* at **Nairobi** this **26th** day of **March, 2026.** **Hon. J. Mwatsama Ag.Chairperson** **signed 26.3.2026** **Hon. Beatrice Sawe Member signed 26.3.2026** **Hon. Fridah Lotuiya Member signed 26.3.2026** **Hon. Michael Chesikaw Member signed 26.3.2026** **Hon. P. Aol Member signed 26.3.2026** Tribunal Clerk Mutai N/A for the Claimant N/A for the Respondent Judgment delivered in the absence of the parties. **Hon. J. Mwatsama Ag. Chairperson signed 26.3.2026**