The government has dismissed claims that it plans to use members’ Savings and Credit Cooperative Societies (SACCOs) deposits to finance the National Infrastructure Fund (NIF), assuring Kenyans that the savings remain under the control of individual cooperatives.

The clarification follows concerns over reports suggesting that more than Ksh1 trillion held by SACCOs could be used to support infrastructure development.

Speaking during Ushirika Day celebrations on Monday, July 6, 2026, Principal Secretary (PS) for the State Department for Co-operatives in Kenya Patrick Kilemi, said SACCO deposits belong to members and are managed independently by elected officials of the respective societies.

“SACCO funds remain the property of the respective SACCOs and are managed exclusively by the elected officials. The government of Kenya has no access to, nor does it intend to utilise these funds,” he said.

The PS added that member deposits remain protected under the cooperative model.

“Member deposits held in SACCOs, since cooperatives are autonomous, they are member-owned institutions and their funds are strictly used to provide affordable credit and other financial services to their members.”

Government assurance

The government said neither the deputy president nor the administration had proposed using SACCO deposits to finance the National Infrastructure Fund.

“At no point did the Deputy President or the government propose using SACCO funds for this purpose.” The Ministry of Cooperatives urged the media to verify information before publishing reports affecting the sector.

“As a ministry and as the cooperative movement, we urge our media, who are partners, to exercise due diligence and professionalism when reporting on matters affecting the cooperative sector, which continues to play a very critical role in our Kenyan social economic development.”

The statement comes days after concerns emerged on social media over the safety of members’ savings following discussions on financing infrastructure projects.

National Infrastructure Fund

The National Infrastructure Fund was established following the enactment of the National Infrastructure Fund Act, 2026.

The fund is intended to mobilise financing for major infrastructure projects in sectors including transport, energy, water, irrigation, digital connectivity and agriculture.

According to the government, the fund will mobilise capital from multiple sources, including equity investments, debt instruments, public-private partnerships, pension funds, privatisation proceeds and capital markets.

The fund will be overseen by a Governing Council chaired by the National Treasury Cabinet Secretary and comprising other government officials and independent members.

The government has maintained that the new financing model is intended to reduce reliance on borrowing while supporting the delivery of priority infrastructure projects.

Concerns over SACCO savings

The clarification follows remarks by Safina Party leader Jimi Wanjigi, who questioned the government’s intentions regarding SACCO savings.

In a post on his X account, Wanjigi wrote: “I warned about the government coming for your money… Today they’re coming for your SACCO monies.”

His remarks sparked debate among SACCO members over the safety of their deposits.

SACCOs remain one of Kenya’s largest financial sectors, serving millions of members by providing savings and affordable credit for education, housing, farming, business and other personal needs.

Government officials have maintained that the proposed Cooperatives Bill seeks to strengthen governance in the sector and modernise cooperative societies while safeguarding members’ savings.

They reiterated that SACCO deposits remain the property of members and will continue to be managed by their respective cooperative societies.