Cooperative Alliance Reassures Members Their SACCO Savings Are Safe Amid Infrastructure Funding Claims
By Peace Muthoka
NAIROBI, July 10, 2026 — The Cooperative Alliance of Kenya (CAK) has moved to calm anxiety among millions of SACCO members, dismissing as false reports that the government intends to use members’ savings to finance long-term infrastructure projects.
Speaking during a press briefing in Nairobi on Friday, CAK Chief Executive Officer Daniel Marube said the allegations circulating on mainstream and social media have created unnecessary fear within the cooperative movement. He maintained that neither the proposed Cooperative Societies Bill nor the SACCO Societies (Amendment) Bill gives the government powers to access or redirect members’ savings.
Marube said the cooperative movement has actively participated in developing both Bills over the years through extensive public participation and stakeholder consultations. As a result, he noted, the current versions before Parliament reflect the sector’s recommendations and contain no provisions that would allow the State to take control of SACCO funds.
“We want to categorically state that these claims are false, misleading and have no basis in law,” Marube said. “There is absolutely nothing in the proposed legislation that permits the government to take members’ savings and invest them in infrastructure projects.”
He urged cooperative members to disregard the circulating messages, warning that the misinformation risks eroding confidence in a sector that serves millions of Kenyans and plays a critical role in expanding access to affordable financial services.
At the same time, Marube explained that the proposed reforms are intended to strengthen governance and improve efficiency across the cooperative movement. He said one of the key proposals allows SACCOs operating within the same sector to voluntarily form unions that would enable them to share services, reduce operational costs and leverage their collective bargaining power.
According to Marube, dairy cooperatives, teachers’ SACCOs and other financial cooperatives would be able to establish sector-based unions to access common legal, audit and technology services. Such collaboration, he added, would also create opportunities for inter-lending, allowing SACCOs experiencing temporary liquidity challenges to borrow from one another instead of relying on expensive commercial bank loans.
Furthermore, the Bill proposes the establishment of a SACCO Deposit Guarantee Fund to cushion members against losses should a SACCO collapse. Marube said the arrangement mirrors the protection enjoyed by bank customers through the Kenya Deposit Insurance Fund and would strengthen confidence in the cooperative sector.
He stressed that investment decisions will continue to rest exclusively with members through Annual General Meetings (AGMs), insisting that no government agency has the legal authority to compel SACCOs to channel their funds into infrastructure bonds or any other investment.
“If a SACCO chooses to invest in a long-term infrastructure bond, that decision must first be approved by members during the AGM. The government cannot force any cooperative to make such an investment,” he said.
Marube acknowledged that some SACCOs currently invest in short-term government securities, including Treasury Bills, but clarified that such investments are voluntary and are made independently by individual cooperatives as part of their financial management strategies.
He also sought to dispel misconceptions surrounding the cooperative sector’s reported assets, which exceed KSh1.3 trillion. Contrary to claims that the money is lying idle, Marube explained that the figure largely represents loans already advanced to members to finance homes, businesses, vehicles, education and healthcare.
“The assets are reflected in the houses members have built, the businesses they have established and the loans that continue to support families across the country,” he said. “There is no KSh1.3 trillion sitting in bank accounts waiting to be taken.”
Meanwhile, Marube welcomed earlier assurances issued by both the National Treasury and the Ministry of Cooperatives, which also rejected claims that the government intends to interfere with SACCO savings. He reiterated that cooperatives are privately owned institutions governed by their members under their own by-laws, while the government’s role is limited to providing the legal and regulatory framework.
As Parliament continues considering the proposed legislation before forwarding it to the Senate, Marube said the cooperative movement remains fully engaged in the legislative process to ensure the final laws strengthen governance, protect members’ savings and promote sustainable growth.
