Millions of SACCO members should not fear losing control of their savings, Cooperative Alliance of Kenya (CAK) Chief Executive Officer Daniel Marube has said, dismissing claims that the government plans to take over members' money through a proposed "super SACCO." He said misinformation surrounding the proposed Sacco Societies (Amendment) Bill has created unnecessary panic, insisting the reforms are aimed at strengthening the cooperative sector and protecting members' funds rather than interfering with them.
Speaking on Radio Generation on Thursday, Marube said false information circulating on social media has misled many cooperative members about the contents of the proposed law.
"We are not a SACCO. We are an advocacy body of the entire cooperative movement," Marube said, noting that CAK has been part of the public participation process and has actively contributed to the proposed legislation.
He said the version of the Bill being shared online is outdated and does not reflect the document currently before Parliament.
"People are circulating a historical document. The current document that we have submitted our views to will be in a completely different shape," he said.
According to Marube, the proposed amendments are intended to improve governance within SACCOs, clearly define the responsibilities of the national and county governments, and introduce stronger measures to safeguard members' savings.
He said one of the proposals is the establishment of a union or federation of SACCOs, which has been wrongly described as a "super SACCO." The planned structure, he explained, would not take over members' deposits but would instead provide shared services including technology support, legal services and liquidity management for participating SACCOs.
"What we are looking at in the new Bill... is a union, an apex, a federation of SACCOs coming together to get specific services," he said.
Marube said the arrangement would also allow SACCOs facing temporary cash shortages to borrow from one another instead of seeking expensive financing from commercial banks.
"We are saying the SACCOs can also, instead of going to look for money in the bank, which is quite expensive, come together and borrow from each other," Marube said.
The proposed changes are contained in the Sacco Societies (Amendment) Bill, 2025, which is before Parliament. Broader reforms are also included in the Cooperatives Bill, 2024, with both pieces of legislation seeking to strengthen governance, regulation and oversight while maintaining the supervisory role of the Sacco Societies Regulatory Authority (SASRA).
Marube also dismissed claims that the government would gain access to SACCO savings or channel members' funds into infrastructure projects.
"The government has no control of what the SACCOs do. The power of where to invest is in the hands of the members at the general meeting," he said.
He added that while some SACCOs invest part of their surplus funds in short-term Treasury bills, those decisions are made independently by the societies.
"Our money is not available for infrastructure because infrastructure is long-term lending. Our priority is to give our members affordable loans to develop themselves and create work for themselves and their children," he said.
Responding to concerns about the reported Sh1.3 trillion held by SACCOs, Marube explained that the amount largely represents loans already issued to members rather than cash sitting in accounts.
"The Sh1.3 trillion is the money that the SACCOs have given as loans to their members. It is in medical bills, education, land, cars and other investments that members have borrowed for," he said.
Marube also acknowledged that some SACCOs have experienced governance challenges but said the problems stem from integrity issues among officials and members rather than weaknesses in existing laws.
"The SACCOs are failing because of the integrity of the leadership, the integrity of the management and even the integrity of some of the members. It's a people issue, not a legal issue," he said, adding that the proposed amendments introduce stronger governance and vetting measures to reduce future failures.
On investigations into the collapse of the Kenya Union of Savings and Credit Cooperatives, Marube said the matter remains active after a forensic audit was handed over to investigative agencies.
"The investigations are still very active. We trust and believe they have what it takes to bring those responsible to account. Nothing has been lost. We believe we can recover something," he said.