Says no legal provision allows the government to access or appropriate savings Cooperative Alliance of Kenya CEO Daniel Marube flanked by Kenya Union of Savings and Credit Co-operatives (KUSCCO) Group managing director Arnold Munene, speaks during a media briefing in Nairobi/ HANDOUT The Cooperative Alliance of Kenya (CAK) has assured millions of Savings and Credit Cooperative Organisations (Sacco) members that their savings are secure.
The national apex organisation for Kenya's co-operative movement says saccos will not be used to finance government infrastructure projects, dismissing reports suggesting otherwise as “false and misleading.” The assurance follows widespread public concern after reports and social media posts claimed the government intended to channel more than Sh1 trillion held by Saccos into the proposed National Infrastructure Fund and infrastructure bonds.
CAK chief executive Daniel Marube on Friday said there is no legal provision allowing the government to access or appropriate members' savings, insisting that the Cooperative Bill awaiting presidential assent contains no such clause. "The claims are false, misleading and have no basis in law.
At no point during the drafting of the Cooperatives Bill or parliamentary deliberations was there any proposal to compel cooperatives or Saccos to surrender members' savings for investment in the National Infrastructure Fund or infrastructure bonds," Marube said.
He said the cooperative movement actively participated in developing the new Cooperatives Bill through stakeholder consultations, public participation and parliamentary scrutiny, and no proposal touching members' deposits was ever introduced. Marube emphasised that cooperatives remain autonomous, member-owned institutions whose investment decisions are made solely by members through their democratic governance structures, with the Annual General Meeting remaining the supreme decision-making organ.
The clarification comes after remarks made by Deputy President Kithure Kindiki, during this year's Ushirika Day celebrations, were interpreted by some sections of the media to mean Sacco deposits would be mobilised to finance public infrastructure. According to Marube, the Deputy President's comments were taken out of context.
"He explained that the proposed National Infrastructure Fund would provide an alternative source of financing for government projects, easing pressure on the national budget and creating additional fiscal space for increased funding to sectors such as cooperatives and Micro, Small and Medium Enterprises.
He did not state that Sacco members' savings would be used to finance government projects," Marube said.