SACCOs have dismissed claims that the government has the authority to direct how members’ savings are invested, insisting that all investment decisions are made independently by member-owned cooperative societies within existing legal frameworks.

Speaking during an interview with a local station on Tuesday, July 14, 2026, Mwalimu National DT SACCO Chief Executive Officer Kenneth Odhiambo said there is no law empowering the government to instruct SACCOs on where to invest members’ funds, urging Kenyans to rely on factual information amid the ongoing debate.

“We need information that is more factual. If you look at the legal frameworks, nowhere is it indicated that the government will come to SACCOs and pronounce where investments should go. That is not how SACCOs operate, even globally,” Odhiambo said.

He maintained that investment decisions are exclusively made by individual SACCOs on behalf of their members, noting that cooperatives are autonomous institutions and not government entities.

“The decision is specific to each SACCO. It is not the government telling SACCOs where to put money. These are member-owned institutions, and investment decisions belong to members through their governance structures,” he added.

Debate over SACCO savings

Odhiambo’s remarks come amid heightened public debate following concerns that more than Ksh1 trillion held by SACCOs could be channelled into financing national infrastructure projects through the proposed National Infrastructure Fund.

Safina Party leader Jimi Wanjigi recently claimed the government was turning to SACCO savings to finance its projects, warning that ordinary Kenyans risked bearing the burden of the country’s economic challenges if private savings were exposed to state spending.

However, the government has consistently denied any plans to seize or control SACCO deposits.

Government assures members

The State Department for Co-operatives has maintained that SACCO funds remain under the exclusive control of individual societies and their elected leadership.

Speaking during Ushirika Day celebrations, Principal Secretary Patrick Kilemi said member deposits belong solely to SACCOs and cannot be accessed by the government.

“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,” Kilemi said.

The government has further clarified that while SACCOs may choose to invest in government-backed instruments, such decisions remain voluntary and are made independently by each cooperative in accordance with its governance structures and members’ interests.

Members’ interests remain central

Odhiambo said the cooperative movement is founded on member ownership and democratic decision-making, assuring savers that external actors cannot dictate how their funds are managed.

He urged the public to distinguish between proposals aimed at expanding investment opportunities for SACCOs and claims suggesting the government can compel cooperatives to finance state projects.

The debate has intensified following recent proposals to strengthen the cooperative sector through legislative reforms, even as both SACCO leaders and government officials continue to insist that members’ savings remain protected under existing laws.