Joyce Rasugu & another v Rose Nyanchama Kebaso [2020] eKLR Case Summary

Court
Micro and Small Enterprises Tribunal at Kisii
Category
Civil
Judge(s)
Joseph M. Were (Chairperson), Ocharo Kebira (Member), Annette Gikuya (Member)
Judgment Date
March 03, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Joyce Rasugu & another v Rose Nyanchama Kebaso [2020] eKLR. Delve into key judicial points, legal principles, and implications of the judgment.

Case Brief: Joyce Rasugu & another v Rose Nyanchama Kebaso [2020] eKLR

1. Case Information:
- Name of the Case: Joyce Rasugu & Abel Kebaso Ototo (suing as the legal representatives of Mosiabano Self Help Group) v. Rose Nyanchama Kebaso
- Case Number: Claim Number 5 of 2019
- Court: Micro and Small Enterprises Tribunal
- Date Delivered: 2nd March 2020
- Category of Law: Civil
- Judge(s): Joseph M. Were (Chairperson), Ocharo Kebira (Member), Annette Gikuya (Member)
- Country: Kenya

2. Questions Presented:
The central legal issues in this case include:
- The amount of money that was disbursed to the respondent, Rose Nyanchama Kebaso.
- Whether the respondent has repaid any of the amounts loaned to her.
- Whether the claimants have accounted for the respondent’s shares in the Mosiabano Self Help Group.

3. Facts of the Case:
The claimants, Joyce Rasugu and Abel Kebaso Ototo, are officials of the Mosiabano Self Help Group and are suing on behalf of the group. They claim that the respondent, Rose Nyanchama Kebaso, who was also a member of the group, borrowed Kshs. 60,000.00 but failed to repay it along with the agreed interest. The claimants assert that the loan was documented through a Loan Agreement dated 2nd December 2015. The respondent contended that she only received Kshs. 54,000.00, alleging that Kshs. 6,000.00 was retained as advance interest. The claimants seek Kshs. 60,000.00 plus interest at a rate of 10% per month, totaling Kshs. 331,250.00, due to the alleged non-repayment.

4. Procedural History:
The claim was initiated on 10th July 2019, with the claimants serving the necessary documents to the respondent. After the respondent entered an appearance and filed a response, attempts at amicable resolution failed, leading to a full trial. During the trial, the claimants presented their evidence, while the respondent defended her position, asserting repayment and disputing the amount owed.

5. Analysis:
- Rules: The court considered the Micro and Small Enterprises Act, 2012, which governs the operations of self-help groups and the lending practices therein.
- Case Law: The court referenced previous cases concerning loan agreements and the burden of proof in civil claims, emphasizing that the claimants must prove their case on a balance of probabilities.
- Application: The court found that the claimants provided sufficient evidence to establish that a loan of Ksh. 60,000.00 was indeed advanced to the respondent. The court was not persuaded by the respondent's claims of repayment without documentation. Furthermore, the claimants' lack of proper record-keeping was noted, but it did not absolve the respondent from her responsibility to ensure her payments were documented.

6. Conclusion:
The court ruled in favor of the claimants, awarding them the loan amount of Kshs. 60,000.00 with interest at 14% per annum from the date of borrowing until full payment. Additionally, the claimants were instructed to account for the respondent’s shares in the group, which should be set off against the awarded amount.

7. Dissent:
There were no dissenting opinions noted in the judgement.

8. Summary:
The tribunal ruled in favor of the claimants, confirming the loan amount and establishing a reasonable interest rate while also emphasizing the need for better record-keeping by the claimants. This case highlights the importance of documentation in loan agreements and the responsibilities of both lenders and borrowers in self-help group settings. The decision reinforces the legal obligations of members within such groups and the potential for disputes arising from poor record-keeping practices.

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