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ELRCDismissedNot stated in judgment· [2024] KEELRC 770 (KLR)

Njiru v Nawiri Sacco Society Limited (Cause E275 of 2021) [2024] KEELRC 770 (KLR)

Employment and Labour Relations Court
21 March 2024
MOMAUREEN ONYANGO
807 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A former SACCO employee lost her terminal dues claim because she never filed submissions, and her shares and dividends dispute belongs in the Cooperatives Tribunal.

What this practically means

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Executive summary

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The Claimant, a former employee of the Respondent, a co-operative savings and credit society in Embu, sued through her union (BIFU, with which the Respondent had a recognition agreement and a CBA signed on 3rd July 2019) seeking terminal dues: gratuity for four years, 10 annual leave days, 17 days worked in January 2020, plus shares and dividends, together with orders restraining and reversing salary deductions of Kes. 12,700 each from Mary Waithira Mungai and Fred Munene Njeru, her loan guarantors. A notice of motion accompanied the claim; the court granted ex parte interim orders restraining the deductions pending inter partes hearing. The Respondent filed neither a reply to the application nor a defence. Settlement attempts failed, and by consent the suit was to be disposed of by pleadings, affidavits and written submissions; however, neither party filed submissions. The court framed the issue as whether the Claimant was entitled to gratuity, annual leave and the 17 days' pay. Holding that the absence of submissions meant the Claimant had not proved entitlement to those dues, the court dismissed the claim. It further held that the shares and dividends prayers, being connected to repayment of a SACCO loan by a member no longer employed by the SACCO, fell within the jurisdiction of the Cooperatives Tribunal and not the Employment and Labour Relations Court. The suit was dismissed in its entirety, with no orders for costs. Judgment was delivered virtually on 21st March 2024 by Maureen Onyango, Judge.

Key legal issues

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01

Proof of entitlement to terminal dues (gratuity, leave, days worked)

Holding

Claim dismissed because the Claimant did not file submissions and did not prove her entitlement.

Reasoning

The parties agreed to dispose of the suit by pleadings, affidavits and written submissions, but none were filed. In the absence of submissions supporting the prayers, the court found that the Claimant had not proved that she was owed gratuity, annual leave or 17 days worked in January 2020. The Respondent had filed neither a defence nor a reply to the application, but the evidential burden remained on the Claimant to establish her claim.

p. 3
02

Jurisdiction over shares and dividends claims

Holding

The court lacks jurisdiction; such disputes are for the Cooperatives Tribunal.

Reasoning

The prayers for shares and dividends arose out of the repayment of a SACCO loan by a member who was no longer an employee of the SACCO. Because those questions concern a member's relationship with the cooperative society rather than an employment dispute, the court held they fall within the Cooperatives Tribunal's mandate and struck them out of its jurisdiction.

p. 3

Legal principles established

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  • Disputes relating to shares and dividends connected with a SACCO loan fall within the jurisdiction of the Cooperatives Tribunal, not the Employment and Labour Relations Court.

Court orders

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  1. 1.The suit is dismissed
  2. 2.No orders for costs

Authorities

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Legislation

  • Co-Operative Societies ActNot specified
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction; claims relating to terminal dues; shares and dividend questions held to fall within the Cooperatives Tribunal's jurisdiction

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Njiru v Nawiri Sacco Society Limited (Cause E275 of 2021) [2024] KEELRC 770 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/770/eng@2024-03-21

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.