The Cooperative Alliance of Kenya (CAK) has moved to reassure millions of Savings and Credit Cooperative Organisation (SACCO) members that their savings are secure and cannot be accessed by the government to finance the proposed National Infrastructure Fund, dismissing widespread claims circulating on social and mainstream media as false and legally unfounded.
The clarification comes after days of public anxiety sparked by reports alleging that the government planned to tap into more than Sh1 trillion held in SACCO deposits to bankroll infrastructure projects through the proposed National Infrastructure Fund and infrastructure bonds.
Addressing the press on Friday, CAK Chief Executive Officer Daniel Marube said the claims had no legal basis and misrepresented both the proposed Cooperatives Bill and remarks made by Deputy President Kithure Kindiki during this year's Ushirika Day celebrations.
"The Cooperative Alliance of Kenya (CAK) wishes to address misleading reports and misinformation circulating in sections of the media and on social media alleging that the Government intends to use members' savings held in Savings and Credit Cooperative Organisations (SACCOs) to finance the proposed National Infrastructure Fund and infrastructure bonds," Marube said.
Marube dismissed the reports outright, saying, "As the apex body and official spokesperson of Kenya's cooperative movement, we wish to categorically state that these claims are false, misleading, and have no basis in law and should stop."
Marube told the press that the ongoing Cooperatives Bill, which is awaiting presidential assent, contains no clause permitting the government to seize or redirect members' savings for public investment.
According to the alliance, the cooperative movement actively participated in drafting the legislation through stakeholder consultations, public participation, and parliamentary review, during which no proposal was introduced to compel SACCOs to invest members' deposits in the National Infrastructure Fund.
"At no point during the drafting of the Bill or parliamentary deliberations was there any proposal to compel cooperatives or SACCOs to surrender members' savings for investment in the National Infrastructure Fund or infrastructure bonds," Marube said.
He added, "The Bill contains no provision that authorises the Government to access, utilise, or appropriate members' savings. Cooperatives are autonomous, member-owned institutions, and investment decisions are made solely by members through their democratic governance structures, with the Annual General Meeting (AGM) remaining the supreme decision-making organ."
The controversy emerged following remarks by Deputy President Kithure Kindiki during the 2026 Ushirika Day celebrations, where he outlined the government's proposal to establish a National Infrastructure Fund as an alternative financing mechanism for major development projects.
Following the speech, sections of the media and social media interpreted the remarks to mean that SACCO savings would be channelled into the fund, triggering concern among millions of cooperative members who feared losing control of their deposits.
The situation further intensified after a leading local news channel aired a prime-time bulletin on July 4, 2026, reporting that the government intended to use more than Sh1 trillion in SACCO deposits to finance infrastructure projects.
The report generated widespread public debate, with cooperative members questioning the safety of their savings and whether Parliament had approved such a move.
However, the channel later retracted the report and issued an apology after concerns were raised over its accuracy.
CAK says the misinformation has unnecessarily shaken confidence in one of Kenya's largest financial sectors.
The alliance maintained that the Deputy President's comments had been taken out of context, with Marube explaining, "The remarks made by Deputy President Kithure Kindiki during the Ushirika Day celebrations were unfortunately taken out of context. He explained that the proposed National Infrastructure Fund would provide an alternative source of financing for government projects, easing pressure on the national budget and creating additional fiscal space for increased funding to sectors such as cooperatives and Micro, Small and Medium Enterprises (MSMEs). He did not state that SACCO members' savings would be used to finance government projects."
He urged journalists to exercise greater diligence when reporting on the cooperative sector.
"We urge all media houses to exercise the highest standards of accuracy and verification when reporting on the cooperative sector, as inaccurate reporting can undermine public confidence and create unnecessary panic among millions of members."
CAK also sought to dispel the perception that SACCOs are holding vast amounts of idle cash available for government borrowing, saying that the deposits have already been deployed to finance productive economic activities across the country.
"It is equally important to clarify that the more than Sh1 trillion associated with SACCOs is not idle cash. These are members' savings that have already been converted into loans financing homes, businesses, education, agriculture, healthcare, transport, and other productive investments across the country."
He added, "These resources remain in the hands of members, supporting livelihoods and economic growth, and cannot simply be diverted for unrelated purposes."
CAK reaffirmed that Kenya's cooperative movement remains a cornerstone of financial inclusion and economic empowerment, pledging to continue safeguarding members' savings.
"The cooperative movement remains one of Kenya's strongest pillars of financial inclusion, wealth creation, and socio-economic transformation. Protecting members' savings and maintaining public confidence remain our highest priority," Marube said.
He urged cooperative members and the public to ignore misinformation and rely on official communication channels for accurate information.
"We therefore urge cooperative members and the public to disregard misinformation and verify any information through official channels," he concluded.