The National Treasury has dismissed claims circulating online that the government intends to borrow more than Ksh1 trillion held in SACCO savings to finance projects under the National Infrastructure Fund (NIF).
In a statement released on Monday, July 6, the Treasury flagged as fake a viral graphic bearing the image of Cabinet Secretary John Mbadi, insisting he never made the remarks attributed to him.
"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," the Treasury stated.
The fabricated post claimed the government was planning to tap into over Ksh1 trillion in SACCO savings to finance roads and other infrastructure projects through the National Infrastructure Fund, alleging the move would be enabled by the upcoming Cooperatives Bill.
Responding to the claims, Treasury Cabinet Secretary John Mbadi dismissed the quote as fabricated and urged Kenyans to ignore the misinformation, advising the public to rely solely on official government communication channels for accurate updates.
"My attention has been drawn to some false information doing the rounds, claiming GOK intends to borrow money from SACCOs to fund projects through NIF. It's maliciously choreographed to misinform the public, taint govt and elicit public uproar," warned CS Mbadi.
The clarification comes as the government accelerates the enactment of the Kenya Cooperatives Bill, with President William Ruto expected to sign it into law within the next month.
Unveiled during the 104th Ushirika Day celebrations, the proposed law seeks to reform and modernise Kenya's cooperative and SACCO sector by introducing a comprehensive legal framework designed to protect more than Ksh1 trillion in members' savings while improving governance and operations across the country's 14 million-member cooperative movement.
Meanwhile, President William Ruto's administration has already mobilised about Ksh129 billion through the National Infrastructure Fund by leveraging domestic financing under Public-Private Partnerships (PPPs).
The amount includes more than Ksh100 billion in seed capital generated from the partial sale of the Kenya Pipeline Company (KPC), with the funds earmarked for strategic infrastructure projects as part of the government's plan to reduce dependence on external borrowing.
Earlier, Deputy President Kithure Kindiki said the government is focused on expanding and digitally transforming SACCOs while also exploring ways to leverage the sector's pooled savings to support national development.
The proposed Cooperatives Bill and the Sacco Societies (Amendment) Bill are intended to strengthen governance, accelerate digital transformation, and establish a Deposit Insurance Fund to safeguard members' savings.
In addition to these reforms, Kindiki said the government plans to channel more budgetary support and infrastructure financing into the cooperative movement by creating additional fiscal space through changes to the funding of major development projects.
"When I say that I have an idea where we will get more money, it is because I know that we are going to create a bit of fiscal space in the budget by offloading some of the projects that are budgeted for, infrastructural projects that can now go into the National Infrastructure Fund and be funded from that fund and therefore we will have a little more leeway and fiscal space to fund key sectors, including the cooperatives sector," stated DP Kindiki.
