Treasury Responds After Viral Claims on SACCO Savings Stir Public Concern

Treasury CS John Mbadi Chat With President William Ruto

The National Treasury has dismissed viral claims alleging that the government plans to tap more than KSh1 trillion held in SACCO savings. It termed the reports false and accused those behind them of spreading misinformation.

The clarification followed the circulation of a graphic carrying a fabricated quote attributed to Treasury Cabinet Secretary John Mbadi. Officials insisted the statement did not originate from the Treasury.

Mbadi Rejects Viral Statement

The fake message claimed the government intended to use SACCO members' savings to finance roads and other projects through the National Infrastructure Fund. It also linked the alleged plan to the proposed Kenya Cooperatives Bill.

Treasury rejected the claims and urged Kenyans not to rely on unverified social media posts. It advised the public to obtain information only from official government platforms.

CS John Mbadi also disowned the circulating quote. He said unknown individuals had created it to mislead the public and damage the government's reputation.

Cooperatives Bill Nears Completion

The clarification comes as the government pushes the Kenya Cooperatives Bill through Parliament. President William Ruto is expected to assent to the legislation within weeks.

The proposed law seeks to modernise the cooperative sector. It also aims to strengthen governance and protect more than KSh1 trillion held by SACCO members.

The reforms will introduce tighter oversight and expand digital services across the sector. They will also establish a Deposit Insurance Fund to safeguard members' savings.

Government's Infrastructure Funding Plan

The government says it has already secured KSh345 billion to capitalise the National Infrastructure Fund. It raised the money locally through Public-Private Partnership arrangements.

Part of the funding came from the partial sale of the Kenya Pipeline Company. Officials say the fund will finance major infrastructure projects while reducing reliance on external borrowing.

Deputy President Kithure Kindiki has previously said the fund will help shift infrastructure spending away from the national budget. He said the move would free up more resources for key sectors, including cooperatives.