- SACCOs say the State cannot dictate how members’ savings are invested.
- Mwalimu DT Sacco CEO says investment decisions are made independently by members.
- The remarks follow debate over proposals involving Sacco funds and the National Infrastructure Fund.
Savings and Credit Cooperative Organizations (SACCOs) have dismissed claims that the government can dictate how members’ savings are invested, maintaining that investment decisions are made independently by member-owned cooperative societies in accordance with existing laws.
Speaking during an interview with a local media house on Tuesday, July 14, Mwalimu National DT Sacco Chief Executive Officer Kenneth Odhiambo said no law grants the government the authority to direct Saccos on where to invest members’ funds. He urged Kenyans to rely on factual information amid the ongoing debate over the proposed reforms.
“We need information that is more factual. If you look at the legal frameworks, nowhere is it indicated that the government will come to Saccos and pronounce where investments should go. That is not how Saccos operate, even globally,” said Odhiambo.
He emphasized that individual Saccos independently make investment decisions on behalf of their members, stressing that cooperatives operate as autonomous institutions rather than government entities.
“The decision is specific to each Sacco. It is not the government telling Saccos where to put money. These are member-owned institutions, and investment decisions belong to members through their governance structures,” he added.
Odhiambo’s remarks come amid growing public debate over claims that more than Ksh1 trillion held by Saccos could be channelled into financing national infrastructure projects through the proposed National Infrastructure Fund.
The government has, however, repeatedly dismissed the claims, maintaining that it has no intention of taking control of Sacco deposits.
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Odhiambo reiterated that the cooperative movement is built on the principles of member ownership and democratic governance, assuring savers that decisions on the management of their funds remain exclusively in the hands of members.
He urged the public to distinguish between proposals aimed at broadening investment opportunities for Saccos and claims suggesting the government can compel cooperatives to finance state projects.
The debate has gained momentum following proposals to reform the cooperative sector through new legislation, even as both government officials and Sacco leaders maintain that members’ savings remain protected under the existing legal framework.
By Frank Mugwe
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