Kinara v Sokoro Sacco Society Limited [2024] KECPT 979 (KLR)

Kinara v Sokoro Sacco Society Limited (Tribunal Case 863 (E954) of 2022) [2024] KECPT 979 (KLR) (27 June 2024) (Judgment)

Neutral citation: [2024] KECPT 979 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Tribunal Case 863 (E954) of 2022

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

June 27, 2024

Between

Abraham Onyancha Kinara

Claimant

and

Sokoro Sacco Society Limited

Respondent

Judgment

Facts of the Case 1. The Claimant is a member of the Respondent’s Society No. 1156 and in the month of March, 2022 tendered his resignation from the society.In the Claimant’s letter dated 10th March, 2022 he gave instructions that in the event that there is any loan due, the same should be balanced with his deposits.

2. On 23rd March, 2022 the Respondent replied to the letter of resignation rejecting the resignation and stating that the Claimant will not be allowed to resign until the loan he has is fully recovered. The letter also informed the Claimant that deductions will continue until the loan is fully recovered.

3. The Respondents in their Statement of Defence stated categorically that they will only clear the Claimant once he clears his outstanding loan balance of Kshs. 105,800/= which he was already in default of repayment.

4. On 18th April, 2024 this Tribunal gave directions for parties to file their written submissions and the Respondent’s filed their submissions indicating among others that the Claimant was very much aware that he took a loan on 8th October, 2020 and that loan is still in arrears. That the claimant was notified when the loan fell in default and sent two reminders and he still did not settle the loan.It is also the Respondents position that the terms of the Loan Agreement do not allow the Claimant to resign until the loan is satisfied.

Issue for Determination Whether the claimant is entitled to a refund of his deposits if the loan he took remains unsatisfied. 5. From evidence adduced, it is clear that the Claimant took a loan of Kshs. 280,000/= on 8th October, 2020, a loan that has not been fully settled.It is also clear from both the loan and share statement filed in evidence that the Claimant still owes the Respondent.It is settled law that to discharge one self from a contract, you also have to perform the terms you agreed to in the contract - in this particular case, the Loan Agreement.It is clear to this Tribunal from evidence availed that the Claimant is yet to fully settle the loan plus interest and even if his deposits were considered to settle the loan, there will still be some balance.

Final OrdersClaim found to be without merit.i.The Statement of Claim dated 4th November, 2022 and filed on 7th November, 2022 is dismissed.ii.Each Party to bear their own costs.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 27TH DAY OF JUNE, 2024. HON. B. KIMEMIA - CHAIRPERSON - SIGNED - 27. 6.2024HON. J. MWATSAMA - DEPUTY CHAIRPERSON - SIGNED - 27. 6.2024HON. BEATRICE SAWE - MEMBER - SIGNED - 27. 6.2024HON. FRIDAH LOTUIYA MEMBER SIGNED 27. 6.2024HON. PHILIP GICHUKI - MEMBER - SIGNED - 27. 6.2024HON. MICHAEL CHESIKAW - MEMBER - SIGNED - 27. 6.2024HON. PAUL AOL - MEMBER - SIGNED - 27. 6.2024Tribunal Clerk - JonahNo appearance by parties.Judgment delivered in absence of parties.LaterHON. J. MWATSAMA - DEPUTY CHAIRPERSON - SIGNED - 27. 6.2024