- Parliament says the proposed Sacco Bill does not give President William Ruto control over members’ savings.
- It also dismissed claims the Bill would create a “Super Sacco”.
- The Bill seeks to strengthen smaller Saccos and improve regulation.
The National Assembly has dismissed reports claiming that the proposed Sacco Societies (Amendment) Bill, 2025, would give President William Ruto authority over members’ savings or allow the government unrestricted access to Sacco funds.
In a statement issued on Wednesday, July 15, Parliament clarified that the Bill does not contain any provision allowing the President to appoint Sacco management committees, describing such claims as false and misleading.
Parliament further urged Kenyans to disregard misinformation and propaganda surrounding the proposed legislation, while addressing several misconceptions that have emerged as the Bill undergoes public participation and consideration by lawmakers.
“The Bill contains no provision allowing the President to appoint management committees. Management committees continue to be appointed by members of the respective Saccos. Individual member Sacco societies elect board members of Secondary Sacco Societies,” said the National Assembly.
Parliament also dismissed claims that the Bill seeks to establish a “Super Sacco,” clarifying that it only proposes the creation of a Secondary Sacco Society whose membership will be limited to Primary Sacco Societies.
“The Bill only provides for a Secondary Sacco Society whose membership is restricted to Primary Sacco Societies to enable access to payment platforms, support investments, improve services for members and facilitate easier fund disbursement,” it added.
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According to the legislature, the proposed Bill seeks to stimulate the growth of smaller Saccos by reducing operational costs, enhancing financial stability, strengthening liquidity management in line with the Central Bank of Kenya (CBK) Act, protecting members’ interests, and reinforcing regulatory oversight by the Sacco Societies Regulatory Authority (SASRA).
It also aims to curb fraudulent pyramid schemes, foster collaboration among smaller Saccos, and promote innovation, operational efficiency, and financial inclusion through the adoption of technology.
By Frank Mugwe
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