Government Dismisses Claims of Plan to Use SACCO Deposits for Infrastructure Projects

By Mandere Onyinkwa

The Ministry of Co-operatives has dismissed reports that the government plans to use SACCO deposits to finance infrastructure projects.

The ministry said claims that more than KSh1 trillion held by Savings and Credit Cooperative Organizations (SACCOs) would be tapped for public projects are false and misleading.

In a statement, Principal Secretary for Co-operatives Patrick Kilemi said a news report aired by NTV Prime News on July 4 falsely implied that SACCO deposits could be tapped to fund government projects, creating unnecessary concern among millions of Kenyans who rely on the cooperative sector for savings and credit services.

“The bulletin falsely suggested that the Government intends to use over KSh1 trillion in SACCO deposits to finance mega public infrastructure projects,” Kilemi said.

 “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.”

Kenya’s SACCO movement is among the largest in Africa, with assets running into trillions of shillings and millions of members.

The sector plays a key role in providing affordable credit, mobilizing savings and supporting small businesses and households.

Kilemi emphasized that SACCO funds remain the property of members and are managed independently by elected officials within the cooperatives.

“For the avoidance of doubt, SACCO funds remain the property of the respective SACCOs and are managed exclusively by their elected officials,” he said.

“The Government has no access to, and does not intend to utilize, member deposits held in SACCOs since cooperatives are autonomous, member-owned institutions.”

The clarification comes after remarks made during the 2026 Ushirika Day celebrations, where Deputy President Kithure Kindiki spoke about the National Infrastructure Fund.

According to the ministry, the Deputy President stated that the fund had secured seed capital amounting to KSh345 billion from proceeds generated through the sale of Kenya Pipeline Company and Safaricom shares.

The ministry said the fund is intended to help finance selected infrastructure projects and create fiscal space within the national budget, freeing up resources for priority sectors, including the cooperative movement.

“At no point did the Government propose using SACCO deposits for this purpose,” Kilemi stated.

The ministry also called on media organizations to verify information before publication, noting that inaccurate reporting could undermine confidence in the cooperative sector.

“We urge media houses to exercise due diligence and professionalism when reporting on matters affecting the cooperative sector, which plays a critical role in Kenya’s socio-economic development,” the statement said.

The ministry further demanded that Nation Media Group retract the report, issue an apology and provide a clarification through the same platform on which the original report was aired.