- Hazina Sacco has assured members their deposits remain safe and are protected under the Sacco Societies Act and SASRA regulations.
- The Sacco dismissed rumours that members’ savings would be used to finance the National Infrastructure Fund, urging members to remain calm.
- The National Treasury and State Department for Cooperatives have also denied the claims, saying the fund will not be financed using Sacco deposits.
Hazina Sacco Society Ltd has moved to calm its members after weeks of speculation that the Government intends to tap into cooperative savings to finance the proposed National Infrastructure Fund (NIF).
In a memorandum dated July 16, 2026, addressed to all members, the Sacco said reports circulating across various media outlets and social media platforms alleging that deposits held by Savings and Credit Cooperative Societies (Saccos) would be used to fund national development projects had raised understandable concern among savers.
Chief Executive Officer (CEO) Dickson Okungu, writing on behalf of the Board of Directors, said the Sacco wished to assure all its members that their deposits with Hazina Sacco remain safe, secure and fully under the custody and management of the Sacco in accordance with the law.
The memorandum noted that Hazina Sacco operates within the legal and regulatory framework established under the Sacco Societies Act and is licensed and supervised by the Sacco Societies Regulatory Authority (SASRA).
It added that the Sacco’s operations are governed by strict prudential standards covering liquidity, capital adequacy, governance and investment of members’ funds, and that the institution cannot use members’ deposits in a manner inconsistent with its mandate and regulatory obligations.
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Okungu said the Board and management remained fully committed to safeguarding members’ savings, exercising prudent financial management and maintaining required statutory liquidity and capital ratios. He urged members to remain calm and continue transacting with confidence.
The reassurance follows widespread public debate that began during Ushirika Day celebrations at Uhuru Park in Nairobi on July 6, 2026, when Deputy President Kithure Kindiki said the Government intended to shift eligible infrastructure projects to the NIF to free up fiscal space for other sectors, including cooperatives.
His remarks were later misconstrued in some social media reports as a plan to borrow more than Ksh1 trillion held in Sacco deposits, prompting alarm among members across the sector.
The National Treasury subsequently dismissed the claims as fabricated, with Cabinet Secretary (CS) John Mbadi denying that any such statement had been made. The State Department for Cooperatives also clarified that the NIF would initially be capitalised through proceeds from the sale of government shareholdings in firms such as Kenya Pipeline Company and Safaricom, and not through Sacco members’ savings.
Principal Secretary (PS) for Cooperatives Patrick Kilemi said Sacco deposits remain the property of members and are managed independently by elected leadership in each society, adding that most deposits are converted into loans to members rather than held as idle cash available for other investments.
By Benedict Aoya
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