Cooperative Alliance of Kenya Dismisses Claims of Government Tapping Sacco Savings for Infrastructure
NAIROBI, Kenya July 10 – The Cooperative Alliance of Kenya (CAK) has strongly refuted reports circulating in the media and across social platforms alleging that the government intends to expropriate members’ savings in cooperatives and Savings and Credit Co-operative Societies (Saccos) to fund long-term infrastructure bonds.
While addressing the media in Nairobi on Friday, CAK Executive Director and CEO Daniel Marube, flanked by key sector leaders, termed the allegations “misleading misinformation” aimed at creating unnecessary panic within the multi-trillion-shilling cooperative movement.
”We wish to categorically state that these claims are false, misleading, and have no basis in law, There is absolutely nothing in the bills currently before Parliament showing that the government intends to take money from the movement for infrastructure funding”, they said.
The briefing was attended by prominent industry stakeholders, including Arnold Munene, Group CEO of the Kenya Union of Savings and Credit Co-operatives (Kusco), Esther CEO of UN Sacco and Jacob Mengich a representative from Boresha Sacco in the Rift Valley region.
Mr. Marube clarified the legislative status of two separate bills currently undergoing parliamentary processes, reassuring members that their interests have been fully protected through intense public participation, the bils includes:
The Cooperative Societies Bill: Having undergone rigorous member participation over a span of 14 years, this bill incorporates comprehensive inputs from the movement’s leadership. It is currently in its final mediation stage and is expected to be assented into law shortly without contention.
The Sacco Societies (Amendment) Bill: Mr. Marube pointed out that the bill generating public commentary was a preliminary draft whose content has entirely changed following widespread feedback from sector stakeholders.
He reminded members that additional windows for public participation will be available through the Senate.
Additionally, the leadership emphasized that the new legal updates aim to introduce structural reforms to boost efficiency, shield member savings, and enhance liquidity management within the ecosystem.
CAK further, stressed that the state lacks the legal authority to unilaterally seize cooperative finances.
“Because cooperatives operate as private entities managed by their internal bylaws, all substantive investment mandates remain restricted to member-voted resolutions at Annual General Meetings (AGMs)”.
Further, Mr. Marube dispelled the myth of massive liquid capital reserves sitting idle in bank accounts, explaining that the sector’s KSh 1.3 trillion to KSh 1.5 trillion asset base is already illiquid and distributed back into the economy.
“The money is out there in the form of loans that have bought pieces of land, constructed houses, paid school fees, or funded business ventures. There is no idle cash mountain available for the government to take,” he said.
According to CAK, the recent wave of anxiety was triggered by local media misquoting a speech delivered by the Deputy President during the recent International Cooperative Day celebrations.
“The Deputy President had indicated that national budget constraints were easing due to funding pipelines from state asset privatizations and external infrastructure bond investments, meaning the government would have the headroom to increase budget allocations to the underfunded Ministry of Cooperatives”, they said.
“The statement did not suggest pulling capital from Saccos into state infrastructure”.
The Alliance noted that both the National Treasury Cabinet Secretary and the Principal Secretary for the Ministry of Cooperatives have issued urgent reports disavowing the rumors.
CAK advised cooperative members across the country to cease circulating the unverified social media posts and maintain absolute confidence in the safety of their institutional investments.
