Skip to content
The National Treasury has dismissed reports claiming the government plans to borrow more than KSh1 trillion from SACCO savings. It described the claims as false and intended to mislead the public.
The clarification came after a graphic circulated on social media quoting Treasury Cabinet Secretary John Mbadi. The Treasury said the graphic contained fabricated information.
The fake post claimed the government would use SACCO savings to finance roads and other projects. It also alleged the plan would rely on the proposed National Infrastructure Fund.
The Treasury denied the claims and urged Kenyans to ignore the viral message. It advised the public to rely only on official government communication channels.
CS John Mbadi also dismissed the circulating quote. He said unknown individuals created the message to spread misinformation and trigger unnecessary public concern.
Cooperatives Bill Sparks Debate
The clarification comes as the government fast-tracks the Kenya Cooperatives Bill. President William Ruto is expected to sign the legislation into law within a month.
The Bill seeks to reform Kenya’s cooperative sector. It also aims to strengthen governance and protect more than KSh1 trillion in members’ deposits.
Officials say the law will improve oversight and support digital transformation across the sector. It will also establish a Deposit Insurance Fund for SACCO members.
National Infrastructure Fund Plans
The government has already mobilised KSh345 billion in seed capital for the National Infrastructure Fund. Officials say the money came from domestic sources through Public-Private Partnerships.
The funding includes proceeds from the partial sale of the Kenya Pipeline Company. The government plans to use the fund to finance major infrastructure projects without increasing external borrowing.
Deputy President Kithure Kindiki has previously said the government wants infrastructure projects financed through the fund. He added that the move would create more fiscal space to support priority sectors, including cooperatives.
About The Author
