Bungoma Teachers Housing & Investment Co-operative Society Ltd v Bonito Properties Ltd (Land Case E023 of 2025) [2026] KEELC 4288 (KLR)
The bottom line
#A Kenyan court blocked cooperative officials from withdrawing a Kshs. 47 million rent case under outside pressure, and let the members themselves join the fight.
What this practically means
#Executive summary
#Key legal issues
#Jurisdiction vis-à-vis the Co-operative Societies Act
The preliminary objection fails because Section 76 disputes are those among members or between the society and another cooperative society; this landlord-tenant dispute is outside that purview.
Section 76 of the Co-operative Societies Act vests jurisdiction over internal cooperative disputes in the Cooperatives Tribunal. The court held that the present dispute is between the society as landlord and its tenant over unpaid rent for the suit premises, a land and environment matter within the court's mandate. The objection accordingly failed.
Joinder of interested parties
The intended interested parties, being bona fide members with a stake in the suit land, were granted leave to join.
Applying Order 1 Rule 10(2) of the Civil Procedure Rules and Thiga v Ngenda, the court found the applicants had a direct identifiable stake: the suit land belonged to the members and the outcome would affect their rights, particularly given evidence that officials sought to withdraw the suit without members' authority amid pressure from the Director of Cooperatives.
Withdrawal of the suit
The application for withdrawal was refused because the resolution was doubtful and the chairman retracted his support.
The withdrawal was said to be based on a members' resolution of 15/5/2026, but the Chairman swore a subsequent affidavit retracting his position, apologizing to the court, and stating the decision did not reflect the vast majority of members. Evidence showed the Director of Cooperatives pressured officials to withdraw after the court ordered payment of Kshs. 47,250,170/= in rent arrears. The court doubted whether the resolution was taken by all members.
Legal principles established
#- A dispute between a cooperative society acting as landlord and a tenant which is neither a cooperative society nor a member of the society falls outside Section 76 of the Co-operative Societies Act and is properly before the Environment and Land Court.
- An intended interested party must demonstrate an identifiable stake in the proceedings and that it would be adversely affected by the outcome.
Court orders
#- 1.The preliminary objection on jurisdiction dated 22/6/2026 fails and is dismissed
- 2.Leave granted to Smith Waswa, Victor Kakenyi Nduma, Fadhila Shiundu Nalyanya and Zaddock Wekulo Makhani to join the suit as interested parties
- 3.The joined interested parties to file the appropriate pleadings within 14 days
- 4.The court declines to mark the suit as withdrawn with no orders as to costs
- 5.Costs of the applications to be in the cause
- Jurisdiction invoked
- Environment and Land Court Act; the court held the dispute is between a cooperative society as landlord and a tenant falling outside Section 76 of the Co-operative Societies Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Bungoma Teachers Housing & Investment Co-operative Society Ltd v Bonito Properties Ltd (Land Case E023 of 2025) [2026] KEELC 4288 (KLR)", Case Analysis (2026). ELC LC No. E023 of 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4288/eng@2026-07-01
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.