The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development has dismissed as false reports claiming that the government plans to use more than KSh1 trillion held in Savings and Credit Cooperative Organizations (SACCOs) to finance major infrastructure projects.
Speaking during a press briefing on Monday at Ministry headquarters, Principal Secretary Patrick K. Kilemi said a news report aired by NTV Prime News on July 4 was misleading and risked causing unnecessary anxiety among millions of Kenyans who rely on SACCOs for savings, credit and other financial services.
“The bulletin falsely suggested that the Government intends to use over KSh1 trillion in SACCO deposits to finance mega public infrastructure projects. This report is inaccurate and has the potential to create unnecessary anxiety among millions of Kenyans who depend on SACCOs for financial inclusion and economic empowerment,” the ministry said.
The ministry emphasized that SACCO funds remain the property of individual cooperative societies and are managed solely by their elected officials.
It added that the government neither has access to nor intends to utilize member deposits, noting that cooperatives are autonomous, member-owned institutions whose funds are exclusively used to provide affordable credit and other financial services to their members.
The clarification follows remarks made during the Ushirika Day 2026 celebrations on July 4, where the Deputy President stated that the National Infrastructure Fund had secured KSh345 billion in seed capital from proceeds generated through the sale of shares in Kenya Pipeline Company and Safaricom.
According to the ministry, the fund is intended to finance selected infrastructure projects, creating fiscal space within the national budget and freeing up resources for priority sectors, including the cooperative movement.
“The Government did not, at any point, propose using SACCO deposits for this purpose,” the statement said.
The ministry also urged media houses to exercise greater diligence and professionalism when reporting on issues affecting the cooperative sector, citing its critical role in promoting financial inclusion and Kenya’s socio-economic development.
It further demanded that Nation Media Group retract the report, issue an apology and publish a corrective statement with the same prominence as the original broadcast.
