- CAK dismisses claims that the government plans to use Sacco savings to fund infrastructure projects.
- Cooperative apex body says the proposed Sacco law contains no provisions allowing members’ funds to be diverted to the National Infrastructure Fund.
The Cooperative Alliance of Kenya (CAK) has refuted claims that the government plans to raid Sacco funds to finance infrastructure projects.
Speaking during a press conference, CAK Chief Executive Officer Daniel Marube dismissed claims that the government plans to borrow over Ksh1 trillion from SACCO savings for the National Infrastructure Fund (NIF).
Reassuring members that their savings are secure, Marube clarified that neither the Cooperatives Bill nor the Sacco Societies (Amendment) Bill contains any provisions for such a move, branding the reports as false, misleading, and legally baseless.
“We want to say that there is nothing like that in the bill that is being discussed in Parliament, or the Sacco Societies Bill. There is nothing completely that shows that the government intends to take the money from the movement for infrastructure funding,” said Marube.
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The remarks by CAK, the apex body and official spokesperson of Kenya’s cooperative movement, come in response to a government notice warning the public against misinformation and propaganda surrounding the proposed legislation.
The government clarified that the Sacco Societies (Amendment) Bill, currently under consideration by the National Assembly’s Departmental Committee on Trade, Industry and Cooperatives, does not propose the creation of a “super Sacco.”
Instead, it provides for the establishment of a secondary Sacco whose membership would be limited to primary Sacco societies.
The government also dismissed claims that the proposed entity would be empowered to lend money to the government or other organisations, or that the Bill would bar Sacco members from accessing their shares after resigning from their societies.
It further refuted assertions that the Bill caps compensation for Sacco members at Ksh100,000 in the event of a society’s collapse, and rejected claims that the proposed secondary Sacco would have the authority to determine the liquidity of individual Saccos.
By Frank Mugwe
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