FACT CHECK: Are Viral Claims About the Sacco Amendment Bill 2025 True?

Viral social media posts are claiming the proposed Sacco Societies (Amendment) Bill, 2025, will introduce new deductions on members’ savings.

A fact-check by HiviLeo shows that the post misrepresents key provisions of the proposed law, spreading misleading claims that have caused unnecessary concern among Sacco members.

Contrary to the viral claims, the bill does not impose a 6.3% deduction on members’ savings, transfer the management of Sacco funds to KUSCCO, abolish financial reporting requirements for Saccos, or give the President political control over member-owned cooperative societies.

What the Sacco Societies Amendment Bill, 2025 Really Says

As a result, claims that Sacco members will face a 6.3% deduction on their savings under the proposed law are false, meaning the bill does not introduce any deduction on members’ savings.

Also Read: DCI Arraigns 19 Suspects Over Alleged Ksh14 Billion Sacco Fraud Scheme

Instead, we found that regulated Saccos pay a regulatory fee of about 0.1% to the Sacco Societies Regulatory Authority (SASRA) as part of regulatory compliance and do not affect members’ savings.

The viral claims also alleged that Sacco members’ funds would be handed over to the collapsed Kenya Union of Savings and Credit Cooperatives (KUSCCO) for management.

However, we found that the proposed bill instead establishes a Central Liquidity Facility that will enable Saccos to lend to one another whenever they require short-term liquidity.

The facility will be managed by a newly licensed Secondary Sacco under the regulation of SASRA and not KUSCCO.

Bill Strengthens Transparency, Not Political Control

Another claim suggested that Saccos would no longer be required to publish their financial statements.

However, we found this claim to be false as the proposed bill intends to strengthen accountability by introducing mandatory digital, real-time reporting to SASRA.

Also Read: SACCO Pays Up After Unlawful Disclosure of Client Data

The bill also proposes tougher penalties for executives who conceal or falsify financial information, including a jail term of up to five years or a fine of up to Ksh3 million.

We further established that claims that the President will become the “Patron” of Saccos under the proposed law are also false.

This is because the bill contains no provision granting the Head of State political control or patronage over private, member-owned Saccos.

We also noted that Sacco stakeholders are actively discussing other proposals related to the bill, including issues attracting debate is a proposed 15% tax on Sacco returns.

They are also pushing for the Deposit Guarantee Fund protection limit to be increased from Ksh100,000, arguing that a higher compensation cap would better protect members with larger deposits in the event a Sacco collapses.

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Truth Behind Claims About the Sacco Societies Amendment Bill 2025. Photo/ File