The National Treasury Cabinet Secretary John Mbadi/HANDOUT
The National Treasury has dismissed as false and malicious claims circulating on social media alleging that the government plans to borrow more than Sh1 trillion from savings held by Savings and Credit Cooperative Organisations (SACCOs) to finance the National Infrastructure Fund.
In a statement, the National Treasury said a graphic attributed to Cabinet Secretary John Mbadi, which claimed the government intended to tap into SACCO deposits to fund roads and other development projects, was fabricated and did not reflect the government's position.
"We wish to clarify that the information circulating on social media regarding the government borrowing SACCO savings for the National Infrastructure Fund is entirely fake and malicious," the Treasury said.
"Cabinet Secretary John Mbadi has made no such statement. The public is advised to ignore this fabricated graphic and rely only on official communication channels for accurate updates."
The fake post alleged that the government was planning to borrow more than Sh1 trillion in SACCO savings through the proposed National Infrastructure Fund, with the move supposedly anchored in the forthcoming Kenya Cooperatives Bill.
Addressing a press conference, State Department for Cooperatives PS Patrick Kilemi said SACCO funds remain the property of respective SACCOs and are managed exclusively by the elected officials.
“The government of Kenya has no access to the funds, neither does it intend to utilise these funds. At no point did the government propose using these funds for this purpose,” he said.
The clarification comes amid heightened public interest in reforms targeting Kenya's cooperative movement following the introduction of the Kenya Cooperatives Bill, which the government is fast-tracking for enactment.
President William Ruto announced during the 104th Ushirika Day celebrations that the landmark legislation is expected to be signed into law within a month.
The Bill seeks to modernise and strengthen the cooperative sector by introducing a comprehensive legal framework to improve governance, enhance transparency and safeguard members' savings.
The proposed law is expected to protect more than Sh1 trillion in member deposits held by SACCOs and other cooperatives while streamlining operations across a movement that serves an estimated 14 million Kenyans.
Alongside the Kenya Cooperatives Bill, the Sacco Societies (Amendment) Bill proposes reforms aimed at improving governance standards, accelerating digital transformation and establishing a Deposit Insurance Fund to cushion members against potential losses arising from the collapse of deposit-taking SACCOs.
The National Treasury's clarification also comes as the government advances plans to operationalise the National Infrastructure Fund, a financing mechanism established under the Public Finance Management Act to support the development, rehabilitation and maintenance of strategic public infrastructure.
The fund is intended to mobilise long-term financing for projects that drive economic growth and improve public service delivery.
It can finance investments in roads, railways, ports, airports, water and sanitation systems, energy infrastructure, information and communication technology projects, as well as other major public works approved by the government.
Unlike the claims circulating online, the Infrastructure Fund is financed through legally established sources, including allocations approved by Parliament, grants and concessional loans from development partners, proceeds from infrastructure financing arrangements, investment returns and other sources permitted under the law.
