NAIROBI, Kenya, July 10, 2026 – The Cooperative Alliance of Kenya (CAK) has dismissed claims that the government intends to use members' SACCO savings to finance infrastructure projects, describing the reports circulating on social and mainstream media as false and misleading.
Speaking during a media briefing at the CIC Building in Nairobi on Friday, CAK Chief Executive Officer Daniel Marube assured millions of SACCO members that their savings remain secure and that no law before Parliament gives the government powers to access or redirect members' deposits.
Marube said the allegations had created unnecessary anxiety among members of the cooperative movement, emphasizing that the proposed SACCO Societies Amendment Bill contains no provision allowing the government to take SACCO funds for infrastructure development.
"The claims being circulated are false, misleading and have no basis in law. There is no provision in the Bill that allows the government to take members' savings for infrastructure financing," he said.
He explained that two separate pieces of legislation are currently under consideration. The Cooperative Societies Bill, which has undergone years of stakeholder consultations, is at the mediation stage before becoming law, while the SACCO Societies Amendment Bill is still undergoing parliamentary review and public participation.
According to Marube, the amendment bill mainly seeks to strengthen governance within the cooperative sector by introducing SACCO unions that will enable institutions with similar interests to work together, share services and reduce operational costs.
He said the proposed unions would allow SACCOs to collaborate on services such as legal representation, auditing, technology and liquidity support, improving efficiency without affecting members' ownership of their savings.
The CAK CEO also welcomed the proposal to establish a Deposit Guarantee Fund, saying it would protect members in the event a SACCO becomes insolvent. He compared the proposed fund to the banking sector's deposit insurance system, noting that it would enhance confidence in the cooperative movement.
Marube maintained that all investment decisions within SACCOs remain the responsibility of members through Annual General Meetings (AGMs), where members vote on major financial decisions.
"There is no mechanism in the proposed law that allows the government to force SACCOs to invest in long-term infrastructure bonds. Members remain the ultimate decision-makers," he said.
He further clarified that while some SACCOs invest in short-term government securities such as Treasury Bills, these investments are made voluntarily and are approved through members' governance structures.
Marube also addressed public concerns over reports that the cooperative movement controls more than KSh1.3 trillion in assets, explaining that the figure represents loans already advanced to members rather than idle cash.
"The assets are in homes, businesses, land, motor vehicles and school fees financed through SACCO loans. There is no KSh1.3 trillion sitting in bank accounts waiting to be taken," he explained.
He urged Kenyans to verify information before sharing it on social media, warning that misinformation could undermine public confidence in one of the country's largest financial sectors.
Marube reiterated that cooperatives remain privately owned institutions governed by their members, with the government's role limited to regulation through existing laws.
The Cooperative Alliance of Kenya said it will continue engaging Parliament and the Senate to ensure the final legislation strengthens governance, safeguards members' savings and supports the continued growth of the cooperative movement.
