The National Treasury has moved with speed to dismiss claims circulating on social media that the government plans to borrow over Ksh1 trillion from SACCO savings to finance the National Infrastructure Fund.
In a statement issued on Monday, July 6, the Treasury termed the information as entirely fake and malicious, warning Kenyans against falling for the propaganda.
The fake graphic, which was doing rounds online, alleged that the government intended to tap into cooperative savings to fund roads and other development projects through the proposed National Infrastructure Fund, with the initiative supposedly backed by the forthcoming Cooperatives Bill. The doctored post was falsely attributed to Treasury Cabinet Secretary John Mbadi.
However, in a firm rebuttal, the Treasury made it clear that CS Mbadi never made any such remarks. "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," read the statement from the Treasury.
CS Mbadi also personally addressed the matter, warning that the false information was deliberately choreographed to misinform the public, taint the government's image and elicit public uproar.
He urged Kenyans to disregard the fabricated graphic and rely only on official government communication channels for verified information.
State Department for Cooperatives Principal Secretary Patrick Kilemi also weighed in, reassuring cooperative members that their money is completely safe. He emphasized that SACCO funds remain the property of respective societies and are managed exclusively by 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," Kilemi stated.
This clarification comes amid heightened public interest in reforms targeting Kenya's cooperative movement following the introduction of the Kenya Cooperatives Bill. 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.
Alongside the 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.
Deputy President Kithure Kindiki has also been vocal about the government's commitment to strengthening the cooperative movement, describing it as one of the country's most powerful engines for wealth creation and economic transformation.
He noted that Kenya has about 14 million cooperative members, including eight million SACCO members who collectively hold more than Sh1 trillion in savings.
Regarding the National Infrastructure Fund, DP Kindiki disclosed that the government has already secured substantial seed capital. More than Sh100 billion has been realised from the sale of part of the government's stake in the Kenya Pipeline Company, while an additional Sh245 billion has been generated from the sale of part of the state's stake in Safaricom.
He said the resources will significantly boost the country's ability to finance major infrastructure projects without increasing the public debt burden or introducing new taxes.
The 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 of strategic public infrastructure.
Unlike the claims circulating online, the Infrastructure Fund is financed through legally established sources, including allocations approved by Parliament, grants from development partners, and investment returns.
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