By James Murimi - Reporter
Kenya, 6 July 2026 - President William Ruto's administration has dismissed claims that it plans to use more than Sh1 trillion held in SACCO deposits to finance mega infrastructure projects, terming the reports false, misleading and capable of triggering panic among millions of Kenyan savers.
In a statement sent to newsrooms on Monday, Principal Secretary for Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development Patrick Kilemi accused NTV of misrepresenting the government's position and demanded an immediate retraction and apology from the Nation Media Group.
"The bulletin falsely suggested that the Government intends to use over Sh1 trillion in SACCO deposits to finance mega public infrastructure projects. This report is inaccurate and has the potential to create unnecessary anxiety among millions of Kenyans who depend on SACCOs for financial inclusion and economic empowerment," Kilemi said.
Seeking to calm fears among SACCO members, the PS stressed that the government neither has access to nor intends to utilize members' savings.
"For the avoidance of doubt, SACCO funds remain the property of the respective SACCOs and are managed exclusively by their elected officials," he said.
Kilemi added: "The Government has no access to, and does not intend to utilize, member deposits held in SACCOs since cooperatives are autonomous, member-owned institutions, and their funds are strictly used to provide affordable credit and other financial services to their members."
The clarification follows remarks by Deputy President Kithure Kindiki during the Ushirika Day celebrations, where he announced that the National Infrastructure Fund had secured Sh345 billion in seed capital from proceeds of the sale of Kenya Pipeline Company and Safaricom shares.
Kilemi said the Deputy President's remarks had been misconstrued.
"The Fund aims to create fiscal space in the national budget by financing selected infrastructure projects, thereby freeing up resources to support priority sectors, including the cooperative movement," the PS said.
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He emphasized that "at no point did the Government propose using SACCO deposits for this purpose."
The PS also challenged the media to uphold accuracy when reporting on the cooperative movement, warning that misleading reports could undermine confidence in one of Kenya's largest financial sectors.
"We urge media houses to exercise due diligence and professionalism when reporting on matters affecting the cooperative sector, which plays a critical role in Kenya's socio-economic development," he said.
Kilemi demanded that Nation Media Group withdraw the report and apologize.
"We demand the Nation Media Group to retract, apologize and issue a corrective statement in the same manner the offending statement was issued," he said.
The government maintained that SACCO members' deposits remain fully protected under the law and insisted there is no policy, proposal or plan to use the savings to finance public infrastructure projects.