Wainaina v Metropolitan National Sacco Limited [2025] KECPT 252 (KLR)

Wainaina v Metropolitan National Sacco Limited (Tribunal Case 189. E259 of 2024) [2025] KECPT 252 (KLR) (Civ) (29 April 2025) (Judgment)

Neutral citation: [2025] KECPT 252 (KLR)

Republic of Kenya

In the Cooperative Tribunal

Civil

Tribunal Case 189. E259 of 2024

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

April 29, 2025

Between

Gladys Wandia Wainaina

Claimant

and

Metropolitan National Sacco Limited

Respondent

Judgment

1. The Claimant was a member of the Respondent’s Sacco Member No. 982 and on 8th May 2023, the Claimant gave the Respondent the requisite notice to pay or refund her deposits, which had a cumulative share contribution of Kshs. 522, 158. 75/= by that date of resignation.

2. That the Respondent failed, neglected and or refused to refund the Claimant her share contribution in breach of the Respondent’s by-laws despite demand made, necessitating the filing of this Statement of Claim dated 20th March, 2024 for recovery of the sum of Kshs. 522, 158. 75/= plus interest from 20th March, 2024 until payment in full.

3. The Respondent filed their Statement of Defence dated 12th June, 2024 stating among others that:i.The Claimant has not proved or sufficiently established that the Respondent is in possession of his shares, savings and or deposits and without prejudice has not met the condition for a refundii.The Statement of Claim is replete with outright falsehoods, misrepresentation and concealment of material factsiii.As per the Respondent’s resolutions at their Annual General Meeting, members resolved and agreed to put refunds on hold until the liquidity challenges faced by the Respondent ceases and which the liquidity problems are facts which are well within the Claimant’s knowledgeiv.The Respondent never received the Claimant’s notice of withdrawal and the Claimant’s demand notice does not conform to the statutory notice envisaged under the Co-operative Societies Act, Rules and the Respondent’s by-lawsv.The Respondent has been through so much turmoil and financial challenges and is overwhelmed by various applicants seeking to withdraw from the Society as a result of mismanagement by previous committeevi.In response to the numerous cases of withdrawal by its members, it requires and it is necessary to have a more structured approach to handle the outstanding matters, failure to which the existence of the society is uncertain

3. This Tribunal on 18th September, 2024 gave directions for the Respondent to file and serve their Witness Statement, Statement of Accounts and other documents within thirty days and for the parties to file their written submissions. The Claimant filed their written submissions dated 7th January, 2025 stating among others:a.That her total savings as at the time of withdrawing his membership amounted to Kshs. 522, 158. 75/=b.That the Claimant followed the laid down procedure when resigning and should have been refunded within 60 daysc.That the Claimant has proved her case beyond a balance of probability

4. The Respondent had not filed a Statement of Account or their written submissions by the time of writing this judgement.

5. Has the Claimant sufficiently proved his claim on a balance of probabilities and is he entitled to a refund?

6. We note that the Claimant did properly withdraw from the Respondent by issuing a handwritten letter dated 8th May, 2023 for a refund of her savings formally, and the Respondent has not produced anything to show that there is a standard format for notice of withdrawal from the SACCO, and as such, the said letter by the Claimant constitutes a proper Notice of Withdrawal and request for refund.

7. The Respondent has not pleaded any liability on the part of the Claimant in terms of loans and guarantees to other members, and in as much as we sympathize with the Respondent’s financial situation, we are also alive to the fact that a member has a right to her deposits. The Co-operative Societies Act is clear on the concept of voluntary membership to a Co-operative Tribunal, and as long as a Co-operative society is in operation, it is expected to honor its obligations to its members. The Legal Notice No. 82 (The Sacco Societies Act) at Section 21 (6) is also clear to the effect that:“A non-deposit-taking Sacco society shall refund to a member the amount accumulated in the member's non-withdrawable account within sixty days of receiving the written notification of the member to withdraw from membership of the Sacco society.”

8. The Claimant produced her salary slip for April 2023, and the Respondent did not dispute the amounts owed, and this Tribunal is inclined to believe that the Respondent owes the Claimant Kshs. 522, 158. 75/= in refunds.

Final Ordersi.The Claimant’s Statement of Claim dated 20th March, 2024 succeeds.ii.Judgment is entered in favour of the Claimant for the sum of Kshs. 522,158. 75/= with costs and interest at Tribunal rates from date of filing claim.

JUDGMENT SIGNED, DATED AND DELIVERED VIRTUALLY AT NAIROBI THIS 29TH DAY OF APRIL, 2025. HON. B. KIMEMIA CHAIRPERSON SIGNED 29. 4.2025HON. J. MWATSAMA DEPUTY CHAIRPERSON SIGNED 29. 4.2025Hon. Beatrice Sawe Member Signed 29. 4.2025Hon. Fridah Lotuiya Member Signed 29. 4.2025Hon. Philip Gichuki Member Signed 29. 4.2025Hon. Michael Chesikaw Member Signed 29. 4.2025Tribunal Clerk JemimahMs. Njeri advocate holding brief for Kanyoro advocate for Claimant.No appearance for RespondentHon. B. Kimemia Chairperson Signed 29. 4.2025