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Small ClaimsAllowedStatement of Claim dated 23rd March, 2025· [2026] SCC 182 (KLR)

Kosgei v Kerich (Commercial Case E438 of 2026) [2026] SCC 182 (KLR)

Small Claims Court (magistrates' court), Eldoret
24 July 2026
1,238 words in judgment
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The bottom line

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An Eldoret court ordered an employment placement agency to refund Ksh 250,000 because it could not prove how a jobseeker's money was spent.

What this practically means

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Executive summary

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By a Statement of Claim dated 23rd March, 2025, the claimant sought a refund of Ksh 250,000/-, being the balance of Ksh 350,000/- paid to the respondent for facilitation of work placement abroad, after a part payment of Ksh 100,000/-. The respondent denied liability for the full amount, admitting only Ksh 60,000/-, and relied on a memorandum of understanding dated 24th December, 2025 under which Ksh 160,000/- was to be refunded, contending that the balance was consumed on medical examination, biometrics and related disbursements. Both parties testified. The court found the payment of Ksh 350,000/- undisputed, but observed that the respondent's engagement document was unexecuted, that no agreement governed use of the funds, and that no proof of the disbursements was filed. Applying the rule that he who alleges must prove, the court held that the burden had shifted to the respondent to show how the money was utilized, which he failed to do. The MOU admitted only Ksh 160,000/- as held for travel and contained no clause about disbursements. The claimant's claim of Ksh 250,000/- was held proved on a balance of probability. Judgment was entered for the claimant against the respondent for Ksh 250,000/-, with costs to the claimant, interest at court rates from the date of judgment until payment in full, and a stay of 30 days granted.

Key legal issues

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01

Whether the claimant is entitled to a refund of Ksh 250,000/-

Holding

Yes - the claimant proved his case on a balance of probability; only Ksh 160,000/- was admitted under the MOU, leaving the balance of Ksh 250,000/- after the Ksh 100,000/- paid

Reasoning

The payment of Ksh 350,000/- was undisputed. The respondent relied on an unsigned engagement document and an MOU covering only Ksh 160,000/-, but filed no proof of the disbursements said to reduce the refund. The burden of proving how the Ksh 190,000/- difference was used lay on the respondent, who failed to discharge it, so the claimant was owed the balance of Ksh 250,000/-

p. 3
02

Effect of the MOU dated 24th December, 2025

Holding

The MOU bound the claimant as to the Ksh 160,000/- refund plan and receipt of Ksh 100,000/-, but it contained no clause permitting deductions for disbursements

Reasoning

Both parties confirmed signing the MOU, which admitted Ksh 160,000/- as held for travel expenses and Ksh 60,000/- payable later. It contained no clause for deduction of disbursements or forfeiture of the initial amount on default, so the respondent could not rely on undocumented medical/biometric expenses

p. 2

Legal principles established

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  • He who alleges must prove; the burden shifted to the respondent to show how the money was utilized
  • Where no executed agreement governs the parties' obligations, the court decides on the balance of probability

Court orders

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  1. 1.Judgment is hereby entered in favour of the claimant as against the respondent for a sum of ksh 250,000/-
  2. 2.Costs of the suit are awarded to the Claimant
  3. 3.Interest shall accrue on the decretal sum at court rates from the date of judgment until payment in full
  4. 4.Stay of 30 days granted
Jurisdiction invoked
First-instance claim before the Small Claims Court / magistrates' court (no constitutional or statutory provision expressly cited in the judgment)

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, "Kosgei v Kerich (Commercial Case E438 of 2026) [2026] SCC 182 (KLR)", Case Analysis (2026). Statement of Claim dated 23rd March, 2025. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2026/182/eng@2026-07-14

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