The government has dismissed claims that it plans to use billions of shillings held by Savings and Credit Cooperative Organisations (SACCOs) to finance infrastructure projects.
The clarification follows growing concern among millions of SACCO members after reports and claims circulating online suggested the State was eyeing members’ savings to bankroll the newly established National Infrastructure Fund (NIF).
Speaking during this year’s Ushirika Day celebrations, Cooperatives Principal Secretary Patrick Kilemi assured Kenyans that SACCO deposits remain safe and cannot be accessed by the government.
“SACCO funds remain the property of the respective SACCOs and are managed exclusively by the elected officials. The Government of Kenya has no access to, nor does it intend to utilise these funds,” Kilemi said.
His remarks come days after Safina Party leader Jimi Wanjigi claimed the government was planning to tap into more than Sh1 trillion held by SACCOs to fund development projects. The claims quickly spread online, leaving many members worried about the safety of their savings.
Kilemi, however, insisted that SACCOs are independent institutions owned and managed by their members. He said the government has neither proposed nor intends to use members’ deposits for any public projects.
Instead, he explained, the National Infrastructure Fund will be financed through other legally recognised sources, including private investment, capital markets, debt instruments and public-private partnerships.
The PS also urged Kenyans to ignore misleading information that could cause unnecessary panic in the cooperative sector, which serves millions of members and remains one of the country’s largest sources of savings and affordable credit.
The clarification comes as the government continues pushing reforms aimed at strengthening governance and accountability within the cooperative movement while protecting members’ savings.
