Uokoaji Regulated Non WDT Sacco Limited v Muriithi [2025] KECPT 23 (KLR)

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