- Parliament has dismissed claims that the proposed Sacco law will allow the government to access members’ savings or control Sacco management.
- The Bill seeks to strengthen regulation, improve financial stability and establish a secondary Sacco to provide shared services for member cooperatives.
- The National Assembly says the legislation is still undergoing public participation, with stakeholder views set to inform amendments before debate.
The National Assembly has moved to reassure members of Savings and Credit Cooperative Organisations (Saccos) that their savings remain secure, dismissing as false claims circulating on social media that the government intends to access more than Ksh1 trillion held by cooperatives to finance the proposed National Infrastructure Fund.
The clarification follows growing public concern over the proposed Sacco Societies (Amendment) Bill, 2025, which has been the subject of widespread misinformation alleging that it would give the government sweeping powers over members’ deposits and the governance of cooperative societies.
In an explainer published in the newspapers on Monday, July 13, 2026, Parliament urged Kenyans to disregard the misleading claims and outlined what the Bill proposes and what it does not.
The National Assembly also refuted assertions that the legislation is being rushed through Parliament. It noted that the Bill was first published on June 30, 2025, more than a year ago.
The bill remains before the Departmental Committee on Trade, Industry and Cooperatives, where it is currently undergoing public participation.
Once public participation concludes, the committee will prepare a report and consider amendments informed by submissions from stakeholders before presenting the Bill for debate in the National Assembly. If approved, the legislation will proceed to the Senate because it affects county governments before being forwarded to the President for assent.
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Parliament said the proposed amendments are intended to strengthen the cooperative sector by improving regulation, enhancing financial stability and safeguarding members’ savings.
Among the key proposals are measures to lower operational costs for smaller Saccos, introduce liquidity requirements for certain cooperatives under the supervision of the Central Bank of Kenya, strengthen oversight by the Sacco Societies Regulatory Authority (SASRA), eliminate fraudulent pyramid schemes posing as cooperatives, and promote innovation and financial inclusion through technology.
One of the most widely shared claims online is that the Bill seeks to establish a government controlled institution through which members’ funds could be accessed. Parliament dismissed the allegation as false.
The Bill proposes the creation of a secondary Sacco society, whose membership would be limited to primary Saccos. The institution would provide shared payment infrastructure, investment opportunities and more efficient fund disbursement services for member Saccos.
The National Assembly further clarified that the Bill does not grant the President or the government authority to appoint Sacco management committees. Management committees will continue to be elected by members of individual cooperative societies, as provided under the current law.
It also rejected claims that the government would have powers to alter or reject elected management committees or interfere in the internal affairs of cooperative societies.
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Parliament additionally dismissed allegations that the proposed secondary Sacco would be permitted to lend money to the government or private individuals.
It stated that there is no such provision in the bill, adding that the proposed institution would, in fact, be prohibited from lending directly to natural persons.
Other claims addressed include assertions that members would lose access to their savings upon resigning from a Sacco and that compensation following the collapse of a Sacco would be capped at Ksh100,000.
Parliament said neither provision exists in the proposed legislation. Instead, it explained that the Bill seeks to strengthen depositor protection by enabling members to claim reimbursement of deposits where a Sacco’s licence has been revoked.
It also clarified that the proposed secondary Sacco would not have the authority to determine liquidity requirements for other cooperative societies. Such requirements will continue to be prescribed by SASRA in accordance with the Central Bank of Kenya Act and existing statutory liquidity reserve regulations.
By Obegi Malack
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