Hosea Barmao Chemweno & Samuel Chilia Saikwa v Raymond Kipkorir Cheruiyot, William Kigen & Daniel Kindagor [2021] KECPT 561 (KLR)

REPUBLIC OF KENYA

IN THE CO-OPERATIVE TRIBUNAL AT NAIROBI

TRIBUNAL CASE NO.316 OF 2019

HOSEA  BARMAO CHEMWENO..............................................1ST CLAIMANT

SAMUEL  CHILIA  SAIKWA......................................................2ND CLAIMANT

VERSUS

RAYMOND  KIPKORIR CHERUIYOT...............................1ST   RESPONDENT

WILLIAM  KIGEN...................................................................2ND RESPONDENT

DANIEL  KINDAGOR.............................................................3RD RESPONDENT

JUDGMENT

1. The Claim  before the Honourable Tribunal  is  dated 17th June 2019 and filed  on even dates.

The Claimants are  members  of Ngenda  Co-operative  Society  and claim  to be the officials  of Ngenda  Co-operative  and bring the claim  on behalf of  other aggrieved  members.

The claim  is against  the Respondents who are the Management  Committee  who have failed to call  for an Annual General  Meeting  as per the  Society’s By-laws.

The claim  thus prays  for:

a. An order  that Respondent  call for  annual general  meeting  [AGM] as demanded  by society’s  by laws.

b. An order  to avail  perusal  financial  statement  to all its member

c. Cost  of this suit.

2. The Respondents responded  to the claim  via statement  of Defence  dated  19. 7.2019 filed  on 30. 7.2019.

In it, the Respondent denied  the averments  of the claimant and  instead  blame  the Claimants for any stalemate  and or  negative influence  within  theNgenda Investment  Rural  Co-operative  Limited. The Statement of  Defence  further requests  the Honourable  Tribunal  to disregard  the  prayers  sought by  the Claimants and uphold  the  election  and nomination  of the 1-3rd  Respondents.

3. Claimant’s Case

CW-1 Samuel Chilia- adopted  witness statement  dated 17. 6.2019 stated  he was  Chairman  of Ngenda  Co-operative  Society  from  22. 6.2018-to31. 5.2019. He states  he was disputing  the elections  held  on  31. 5.2019. His  prayer  is for  them to go  back  to office and  organize  another  election.  He stated the election was  illegal  and Co-operative  officer  was biased and did not  vet the  members present for the meeting.

He stated  there was no  handing over  done to  the  “new officials” as they  disputed  the elections and the whole process.

4. He further  stated  they  called for  a Special  General  Meeting  via  a notice  dated 14. 5.2019. They  had  new By-laws of  which were  not used  in the elections. As per  the  By-laws  quorum would have  to be  150 members which  number  was not achieved.

In his evidence he stated they had elections before and  there  are normally  2 or 3  Co-operative  officers  present. In the meeting  on 31. 5.2019 there was only  one officer  and he insisted  on being a signatory. He further  gave  evidence  and  started  of all the elected committee members  only  one qualified  to be elected.  The rest  did not have the  requisite  number of shares  to be eligible  for elections into  office and they had  not been vetted.

5. During  cross- examination  he started  the  Co-operative  officer  lost control  of the meeting  and thus vetting  was  not done.

6. CW2- Hosea Chemweno evidence  was that the group from Baringo  disrupted  the meeting. It is important  to  note  most members  from  Baringo  had withdrawn  from the Sacco  thus their voting  was illegal.

There  was no representative  from Bomet,  or Kitale, Uasin Gishu and Laikipia, very  few were  from Keiyo.

His  prayer  is for  another set  of elections  to be held.

His  evidence  collaborated  CW1  by stating  there were  chaos  in the elections  and thus cannot  be deemed  to be  a proper  election. If elections  were proper  they  would  not  have  filed suit.

7. Respondent’s  Case

RW1 Raymond  Kipkurui  Cheruiyot  adopted  his witness statement  dated  1. 9.2020 and filed on 8. 9.2020he stated  he is the current  Chair  of Ngenda Investment Rural  Co-operative  Limited  elected  on 31. 5.2019.

He stated  he is the current  Chair  as per the  letter  dated 25. 6.2019 by Sub County  Co-operative  Officer  Mr. Muchemi  REX. 9.

He stated  he was a member  of the  Interim  Committee  elected  on  26. 6.2018  before  the Special  General  Meeting  on 31. 5.2019.

The Claimant  Samuel  Chilia  Saikwa did not  attend  the handing over  meeting  on 10. 6.2019.

He further claimed  the intention  of the case  is away  to  extend  time  in office for  the  old committee.

8. RW2 stated  he was elected  treasurer  and stated  there was no  handing over  of his  office.

He  was fired by  the Claimant – Chairman  because  he asked  for accountability  of shares of the members.

He further  stated  some counties  were merged  thus  the  change  in representation.

He however did  not complain  to the Sub County  Co-operative Officer  after  being  fired

9. Analysis/ issues

From  the evidence  adduced  by both parties  it is our view that  elections  were done  on 31. 5.2019.

i. The borne  of contention  is whether  the elections  done  on 31. 5.2019 were valid;

ii. Whether the Delegates  in the meeting were members  of Ngenda  Investment  rural  co-operative  Limited.

iii. Who are  the  bona fide  officials  of Ngenda  Investment  Rural  Co-operative  Limited.

10. Issue one:

The elections done on 31. 5.2019 did not meet the required  threshold  for the meeting  to be validated.

We are constrained to agree with the Claimants that members were not vetted before voting.

There was only one Co-operative Officer which was not the norm.

There was chaos during the meeting with disruptions for a meeting to be valid and legitimate.

11. Issue  two:

It is hard to establish whether all delegates were members of the Ngenda  Investment  Rural  Sacco  with no proper  vetting  and records.

12. Issue three:

To this  end the  elections  of 31. 5.2019 were a sham and thus  we find  the  officials  of the  Ngenda  Investment Rural Co-operative Sacco Limited to be  as they  were before  the Special  General Meeting on  31. 5.2019.

Upshot

The upshot of the above is that the elections of 31. 5.2019 cannot be upheld.

Thus we find in favour of the Claimant to the extent of:

i. That  the elections  carried out  on 31. 5.2019 are declared  null and void.  The officials who were in office before 31. 5.2019 to continue in office until a fresh election carried out.

ii. That  the Commissioner  for Co-operatives  Development  do supervise  and direct  the calling  of  an Annual General Meeting and fresh elections  of officials  of Ngenda Investment Rural  Co-operative  Limited  within  90 days herein.

iii. That a proper member’s register be prepared before elections are carried out.

iv. We order for each member of Ngenda Investment Rural  Co-operative  Limited availed  the financial  statement  for perusal.

v. Costs  in the  suit.

Judgment signed, dated and delivered virtually this 6th   day of May, 2021.

Hon. B. Kimemia                 Chairperson                Signed      6. 5.2021

Hon. J. Mwatsama              Deputy Chairperson  Signed      6. 5.2021

Mr. P. Gichuki                      Member                       Signed      6. 5.2021

Tribunal Clerk                       R. Leweri

Raymond  1st Respondent: Present

No appearance  for Claimant

Hon. B. Kimemia                  Chairperson                Signed      6. 5.2021