Marube Says Proposed SACCO Laws Will Strengthen Governance and Protect Members’ Deposits
Cooperative Alliance of Kenya CEO Daniel Marube addresses the media on SACCO reforms, assuring members their savings remain protected. Nairobi, July 10, 2026.
The Cooperative Alliance of Kenya (CAK) has assured millions of cooperative members that proposed amendments to the country’s cooperative laws are aimed at strengthening governance, improving efficiency and safeguarding members’ deposits, dismissing claims that the government intends to use SACCO savings to finance infrastructure projects.
Speaking during a press briefing in Nairobi on Friday, CAK Chief Executive Officer Daniel Marube termed reports circulating on mainstream and social media alleging that the State plans to access SACCO funds as false and misleading.
Marube said the misinformation had created unnecessary anxiety among cooperative members, emphasizing that neither the Cooperative Societies Bill nor the SACCO Societies (Amendment) Bill grants the government authority to compel SACCOs to invest members’ savings in long-term infrastructure bonds.
“We wish to categorically state that these claims are false, misleading and have no basis in law. There is nothing in the Bill that allows the government to take members’ savings for infrastructure financing,” said Marube.
He explained that the Cooperative Societies Bill, which is currently at the mediation stage in Parliament, is the product of nearly 14 years of stakeholder consultations and incorporates views submitted by the cooperative movement.
Marube noted that the SACCO Societies (Amendment) Bill has equally undergone extensive review following public participation and memoranda presented to Members of Parliament, adding that stakeholders will have another opportunity to present their views when the Bill proceeds to the Senate.
According to Marube, the proposed reforms are intended to address governance gaps while positioning cooperatives to operate more efficiently and competitively.
He said one of the key proposals is the establishment of cooperative unions that will bring together SACCOs and cooperatives within similar sectors to enable them to benefit from economies of scale through shared services such as legal support, auditing, technology and procurement.
“The so-called ‘super SACCO’ is simply a union of SACCOs coming together to improve efficiency, reduce operational costs and enhance service delivery. It is not an institution where members’ money will be pooled for government use,” he said.
Marube added that the unions would also provide a framework for inter-lending among SACCOs, enabling institutions facing temporary liquidity challenges to access affordable financing from fellow SACCOs instead of relying on expensive commercial bank loans.
He said another significant proposal in the Bill is the operationalisation of a SACCO Deposit Guarantee Fund, which will serve as an insurance mechanism to compensate members should a SACCO fail.
“The Deposit Guarantee Fund is intended to protect members in the same way deposit insurance protects customers in the banking sector. It is a safeguard for members’ savings,” he said.
Marube emphasized that SACCOs remain private member-owned institutions whose investment decisions are made democratically through Annual General Meetings (AGMs) and delegates’ meetings.
“There is nowhere in the proposed law where the government can force a SACCO or a union to invest in infrastructure. Any investment decision must be approved by members themselves,” he said.
He acknowledged that SACCOs currently invest in short-term government securities such as Treasury Bills but stressed that committing members’ funds to long-term investments would contradict the movement’s core mandate of providing affordable credit to members.
Marube urged cooperative members to disregard misleading information circulating online and instead rely on official communication from sector institutions.
He noted that the Ministry of Cooperatives and the National Treasury had already clarified that the government has no intention of interfering with SACCO funds.
“We want members to know that the cooperative sector is stable. These legislative reforms are meant to strengthen governance, close existing gaps and ensure members’ funds remain secure,” he said.
Marube further clarified misconceptions surrounding the cooperative movement’s asset base, estimated at between Sh1.3 trillion and Sh1.5 trillion.
He explained that the figure represents productive assets financed through SACCO lending rather than idle cash available for investment.
“The assets are already in homes, businesses, motor vehicles, school fees and other investments financed through SACCO loans. There is no idle money sitting somewhere waiting to be taken,” he said.
He reaffirmed the Cooperative Alliance’s commitment to working with Parliament and the Senate to ensure the final legislation reflects the interests of the cooperative movement while enhancing transparency, accountability and financial security across the sector.
