Kenyan Co-operatives Confirm Member Savings Are Safe From State Infrastructure Projects
Nairobi, 11 July 2026
The Co-operative Alliance of Kenya has dismissed rumours of state seizure, clarifying that the sector’s KSh 1.3 trillion asset base is already fully lent out to members.
Clarifying the Ushirika Day Misunderstanding
The public anxiety began following remarks made by Deputy President Kithure Kindiki on 7 July 2026 during the Ushirika Day celebrations [1][3]. Widespread speculation quickly intensified across social media and mainstream press, suggesting that the state planned to tap up to KSh 1 trillion in Sacco deposits to finance its National Infrastructure Fund and infrastructure bonds [1][3]. In response, on 10 July 2026, Daniel Marube, the Chief Executive Officer of the Co-operative Alliance of Kenya (CAK), alongside Arnold Munene, the Managing Director of KUSCCO Group, issued a joint statement in Nairobi to firmly deny these reports, stating that Sacco savings are legally protected and entirely inaccessible to the state [1][3].
Sacco Governance and How Members Access Their Money
For business owners and community savings groups, particularly in regions like Kakuma and Kalobeyei, understanding how to access Sacco services is vital for economic survival [GPT]. Saccos operate as private, autonomous entities managed by their internal bylaws [3]. This means that all major investment decisions and fund allocations remain restricted to democratic resolutions voted on by members during Annual General Meetings (AGMs) [3]. To access Sacco services or withdraw savings, members must navigate specific eligibility criteria and operational deadlines established by their respective institutions [GPT]. Usually, individuals must register with a registered co-operative, submit identification documents, and pay a minimal entrance fee alongside purchasing minimum share capital [GPT]. To qualify for credit, members are typically required to save consistently for at least six months, and loan applications must be backed by guarantors from within the same Sacco [GPT]. Withdrawal of deposits generally requires a written notice of 60 days, ensuring that the co-operative can manage its liquidity without disrupting loans already issued to other members [GPT].
The Broader Economic and Fiscal Context
This clarification comes at a time when the Kenyan government is navigating tight fiscal constraints. For the 2025/2026 financial year, the Kenya Revenue Authority (KRA) missed its revenue collection target by KSh 124 billion, collecting KSh 2.844 trillion against a projected target of KSh 2.968 trillion [2]. This represents a deficit of approximately -4.178% [2]. Despite this shortfall, the collection marks a 10.6% improvement over the 2024/2025 financial year [2]. To address the fiscal gap, the government is exploring alternative funding pipelines, but both the National Treasury Cabinet Secretary and the Principal Secretary for the Ministry of Cooperatives issued formal disavowals on 9 July 2026 to confirm that Sacco capital will not be touched [3].