Cooperative Alliance of Kenya (CAK) Chief Executive Officer Daniel Marube (center) addresses the media during a press briefing on proposed cooperative sector reforms and the safety of SACCO members’ savings in Nairobi, July 10, 2026.
NAIROBI, July 10, 2026 — The Cooperative Alliance of Kenya (CAK) has dismissed as false and misleading claims that the government intends to use members’ savings held in Savings and Credit Cooperative Societies (SACCOs) to finance long-term infrastructure projects, assuring members that their funds remain secure and under their control.
Speaking during a media briefing in Nairobi on Friday, CAK Chief Executive Officer Daniel Marube said the allegations circulating on social and mainstream media had caused unnecessary anxiety among cooperative members, yet the proposed Cooperative Societies Bill and the SACCO Societies (Amendment) Bill contain no provisions allowing government access to members’ savings.
“We wish to categorically state that these claims are false, misleading and have no basis in law. There is nothing in the Bill that allows the government to take members’ money for infrastructure funding,” said Marube.
He explained that the proposed SACCO amendments mainly seek to strengthen governance by allowing SACCOs to form unions along common value chains to improve efficiency through shared services such as legal, audit and technology support, while also introducing a long-awaited Deposit Guarantee Fund to protect members in the unlikely event that a SACCO collapses.
Marube noted that the legislative proposals had undergone extensive public participation, with cooperative leaders submitting memoranda to Parliament, adding that members would have another opportunity to present their views when the Bill proceeds to the Senate.
He further clarified that investment decisions within cooperatives remain the exclusive responsibility of members through Annual General Meetings (AGMs), saying no institution, including the government, can compel a SACCO to invest in any financial instrument.
“The authority and governing power of cooperatives rests with the members. Any investment decision must be presented to and approved by members through the AGM. There is nowhere in this Bill where the government can force SACCOs to invest in infrastructure,” he said.
Marube acknowledged that SACCOs already invest in short-term government securities such as Treasury Bills as part of prudent liquidity management but stressed that members’ savings are primarily meant to provide affordable credit and cannot be locked in long-term investments that would deny members access to loans.
He also dismissed reports suggesting that the cooperative sector holds idle funds amounting to more than KSh1.3 trillion, explaining that the figure represents assets created through loans already advanced to members.
“The KSh1.3 trillion is not idle cash. It is in homes, businesses, vehicles, school fees and other investments financed through SACCO loans. There is no money sitting somewhere waiting to be taken,” he said.
Marube reaffirmed that cooperatives are private, member-owned institutions governed by their own bylaws, with government only providing the legal and regulatory framework.
He urged members to ignore and stop sharing unverified information that could undermine confidence in the sector, adding that the cooperative movement remained stable and committed to safeguarding members’ savings while working with Parliament to ensure the final legislation strengthens governance and protects depositors.
