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Treasury flags fake graphic claiming State plans to borrow Ksh1T from SACCOs
06th July, 2026 08:21 PM
The National Treasury has flagged a viral social media graphic claiming that the government plans to borrow more than Ksh1 trillion from Savings and Credit Cooperative Organisations (SACCOs).
According to the false post, the state intended to tap into cooperative savings to finance projects through a proposed National Infrastructure Fund. The post further alleged that the move would be supported by the upcoming Cooperatives Bill, wrongly linking the remarks to Treasury Cabinet Secretary John Mbadi.
Treasury dismisses false reports
The ministry acted on July 6, 2026, to stop the spread of the false information and reassure the public. In an official statement, the Treasury made it clear that the graphic was a total fabrication aimed at causing panic among cooperators.
“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 stated.
The ministry added that the Treasury boss has not held any discussions or made any comments about touching members’ money. “Cabinet Secretary Hon. FCPA John Mbadi @JohnMbadiN has made no such statement,” the ministry clarified.
To prevent further confusion, the government urged Kenyans to be cautious about what they read online and to verify details before sharing. “The public is advised to ignore this fabricated graphic and rely only on official communication channels for accurate updates.”
Safety of member savings
The cooperative sector is a massive pillar of Kenya’s economy, holding billions of shillings in members’ deposits. Because of this, any rumours about the government taking over these funds usually cause anxiety across the country.
State Department for Cooperatives Principal Secretary Patrick Kilemi addressed the issue during a press conference on July 6, 2026, to defend the safety of these funds. He reassured cooperative members that their money is completely safe and remains the property of their respective societies, managed exclusively by elected officials.
“The government of Kenya has no access to the funds, neither does it intend to utilise these funds. At no point did the government propose using these funds for this purpose,” Kilemi said.
The false reports emerged during ongoing discussions about the new Cooperatives Bill. While the state is fast-tracking the bill, officials maintain that it does not contain any laws allowing the government to borrow from SACCO cash reserves.
