- Kenyans have been urged to verify any claims about the SACCO reforms through official government communication before sharing them further
- PS Kilemi reaffirmed that SACCO funds remain the property of their respective societies and are managed exclusively by elected officials
The National Treasury has dismissed as false and malicious claims circulating on social media alleging that the government plans to borrow more than KSh1 trillion from deposits held by Savings and Credit Cooperative Organisations (SACCOs) to finance the National Infrastructure Fund.
In a statement, the Treasury clarified that a report attributed to Cabinet Secretary John Mbadi suggesting the government intended to tap into SACCO savings for roads and other development projects was fabricated.
“We wish to clarify that the information circulating on social media regarding the government borrowing SACCO savings for the National Infrastructure Fund is entirely fake and malicious. Cabinet Secretary John Mbadi has made no such statement. The public is advised to ignore this fabricated graphic and rely only on official communication channels for accurate updates,” the statement read.
The online post alleged that the government was planning to borrow SACCO deposits through the proposed Kenya Cooperatives Bill, anchoring the move in the forthcoming legislation.
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PS Kilemi refutes claims of diverting SACCO savings to infrastructure fund
State Department for Cooperatives Principal Secretary Patrick Kilemi reaffirmed that SACCO funds remain the property of their respective societies and are managed exclusively by elected officials.
“The government of Kenya has no access to the funds, neither does it intend to utilise these funds. At no point did the government propose using these funds for this purpose,” he said.
The clarification comes amid heightened public interest in reforms targeting Kenya’s cooperative movement following the introduction of the Kenya Cooperatives Bill, which the government is fast‑tracking for enactment.
Alongside the Cooperatives Bill, the Sacco Societies (Amendment) Bill proposes reforms aimed at improving governance standards, accelerating digital transformation, and establishing a Deposit Insurance Fund to cushion members against potential losses arising from the collapse of deposit‑taking SACCOs.
Treasury and Cooperatives officials say the twin pieces of legislation are intended to strengthen, not undermine, the cooperative movement, and have urged Kenyans to verify any claims about the reforms through official government communication before sharing them further.
By Masaki Enock
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