Gatimu v Transcom Sacco Limited [2023] KECPT 819 (KLR)

Gatimu v Transcom Sacco Limited (Tribunal Case 532 (E365) of 2021) [2023] KECPT 819 (KLR) (31 August 2023) (Judgment)

Neutral citation: [2023] KECPT 819 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 532 (E365) of 2021

BM Kimemia, Chair, J. Mwatsama, Vice Chair, B Sawe, F Lotuiya, P. Gichuki, M Chesikaw & PO Aol, Members

August 31, 2023

Between

Francis Njunge Gatimu

Claimant

and

Transcom Sacco Limited

Respondent

Judgment

1. The Claim for determination is dated 01/11/2021 filed on 24/11/2021. The Claimant avers that on the 28th day of May 2020, he wrote to the Respondent appraising them of his impending retirement and requested for a refund of his total contributions of Kshs.240,600/=. He filed his Witness Statement dated 01/11/2021 and filed on 24/11/2021. He also filed a List of Documents dated 01/11/2021 on 24/11/2021. The list included;a.Payslip – September 2020b.Demand letter from the Claimant dated 28/05/2020c.Demand letter from the advocate dated 15/03/2021

2. The Respondent filed a Statement of Defence dated 04/01/2022. The Respondent avers that they owe the Claimant a total share amounting to Ksh 240,600/= Less institutional shares of Ksh 5,000/= and administration fee Ksh 1,000/= hence the total amount claimed being Ksh 234,600/=. The Respondent further states that it is ready to pay the amount over a ten month instalment rate of Ksh 23,460/=. They actually paid the first instalment and defaulted. However, the Respondent denies the receiving of the withdrawal notice from the Claimant.

3. This being a matter of refunds, the parties were directed to file written submissions. The Claimant filed his submission dated 13/01/2023 on 06/06/2023. The Respondent has not filed their written submissions as at the date of writing this judgement.

4. Having considered the pleadings and written submissions of the Claimant, the issue for determination is one;Whether the Claimant is entitled to their refund.It is not disputed by the Respondent that the Claimant was their member and held savings and contributions amounting to Kshs 240,600/=. The reason the Respondents are not refunding the Claimant the full amount is because of the administration fees of Ksh 1,000/= and institutional shares of Ksh 5,000/= they wish to deduct from the whole amount which is Kshs 240,600/=.Shares in SACCO are non refundable.

5. The Cooperative Society Act read together with the Cooperative Societies Rules of 2004 requires that members are entitled to refunds upon expulsion or withdrawal of membership.

6. The Ksh. 5,000/= of institutional shares and the first Instalment of Ksh 23,460/= will be deducted.

Determination 7. As such, the Claimant has proved their case and we thus find in favour of the Claimant against the Respondent for Ksh 212,140/= after deductions plus cost and interests.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 31ST DAY OF AUGUST, 2023. HON. BEATRICE KIMEMIA CHAIRPERSON SIGNED 31. 8.2023HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 31. 8.2023HON. BEATRICE SAWE MEMBER SIGNED 31. 8.2023HON. FRIDAH LOTUIYA MEMBER SIGNED 31. 8.2023HON. PHILIP GICHUKI MEMBER SIGNED 31. 8.2023HON. MICHAEL CHESIKAW MEMBER SIGNED 31. 8.2023HON. PAUL AOL MEMBER SIGNED 31. 8.2023TRIBUNAL CLERK JEMIMAHGitau advocate for the claimantNo appearance by Respondent