Treasury Clarifies Whether Govt Will Borrow SACCO Savings for National Infrastructure Fund

Treasury CS John Mbadi while appearing before parliamentary committee for budget in Parliament. PHOTO/ File

The National Treasury has refuted reports circulating on social media alleging that the government intends to borrow more than Ksh1 trillion from savings held by Savings and Credit Cooperative Organizations (SACCOs) to finance the proposed National Infrastructure Fund.

In a statement issued on July 6 2026, the Treasury said the claims were false and were based on a fabricated graphic falsely attributed to Cabinet Secretary John Mbadi.

The Treasury clarified that Mbadi did not make the remarks that are being circulated online and urged the public to disregard the misleading information.

“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 said.

Fake Information

The Treasury further emphasized that the circulating information was fake and cautioned Kenyans against sharing unverified information that could mislead the general public.

Responding to the reports, CS Mbadi termed the information false and urged the public to ignore it, emphasizing that the government had not announced any such plan.

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“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,” said Mbadi.

This clarification comes as the government moves to enact the Kenya Cooperatives Bill, which is expected to be signed into law by President William Ruto after its passage through Parliament.

Kenya Cooperatives Bill

The proposed legislation seeks to reform and modernise Kenya’s cooperative sector by strengthening governance, enhancing accountability, accelerating digital transformation and introducing measures to better protect members’ savings.

It also proposes the establishment of a Deposit Insurance Fund for SACCO deposits.

The reforms are expected to benefit Kenya’s cooperative movement, which has more than 14 million members and manages deposits worth over Ksh1 trillion.

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Separately, the government is also advancing the National Infrastructure Fund as part of its strategy to finance major development projects using domestic resources and reduce dependence on external borrowing.

According to the government, the fund has already secured approximately Ksh345 billion in initial capital through Public-Private Partnerships (PPPs), including proceeds from the partial sale of the Kenya Pipeline Company.

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