By James Mutua
The Cooperative Alliance of Kenya (CAK) has dismissed claims that the government plans to use members’ savings held in Savings and Credit Cooperative Societies (SACCOs) to finance long term infrastructure projects, describing the reports as false and misleading.
Speaking during a press briefing in Nairobi, CAK Chief Executive Officer Daniel Marube said the allegations had caused unnecessary anxiety among cooperative members but have no basis in the proposed SACCO Societies Amendment Bill currently before Parliament.
“We wish to categorically state that these claims are false, misleading and have no basis in law,” said Marube.
He explained that the cooperative movement actively participated in the drafting of both the Cooperative Societies Bill and the SACCO Societies Amendment Bill, submitting recommendations that significantly shaped the current proposals.
According to Marube, the amendment bill mainly introduces governance reforms, including allowing SACCOs to form unions based on common interests or value chains to improve efficiency, reduce operational costs and provide shared services such as legal, audit and technology support.
He also said the bill proposes the establishment of a SACCO Deposit Guarantee Fund to protect members’ savings in the event a SACCO collapses, similar to the banking sector’s deposit protection scheme.
Marube stressed that investment decisions remain the exclusive responsibility of SACCO members through Annual General Meetings, and there is no provision in the proposed law allowing the government to compel SACCOs to invest in infrastructure bonds.
“If a SACCO wants to put its money in a long term infrastructure bond, the leadership must seek approval from members at the AGM. There is nowhere in this bill that the government will force unions to put money into infrastructure,” he said.
He noted that while SACCOs currently invest in short term government securities such as Treasury bills, they avoid locking members’ funds in long term investments because the primary objective is to provide affordable loans to members.
Marube urged cooperative members to stop circulating misinformation on social media, saying such claims only create unnecessary fear within the sector.
“We are asking members not to continue circulating misleading information because it is false and is causing unnecessary anxiety among our members,” he said.
He further clarified that the cooperative sector’s reported assets of more than Sh1.3 trillion do not represent idle cash but consist largely of loans advanced to members for businesses, housing, education, medical expenses and other investments.
“The money is in the loans. It is in the houses, businesses, cars and school fees we have financed. There is no Sh1.3 trillion sitting idle anywhere,” Marube said.
He maintained that the cooperative movement remains stable and pledged to continue engaging Parliament and the Senate to ensure the final legislation safeguards members’ savings and strengthens governance across the sector.
