Editor's Review

The National Treasury denied reports that the government planned to borrow SACCO savings.

The National Treasury has dismissed reports that the government plans to borrow savings from Savings and Credit Cooperative Organisations (SACCOs) to fund the National Infrastructure Fund as fake.

In a statement issued on Monday, July 6, Treasury flagged a viral social media post as fake after it alleged that Cabinet Secretary John Mbadi had planned to borrow Ksh1trillion from SACCOs to fund key development and infrastructure projects.

The doctored graphic further alleged that the initiative had its legal basis on the Cooperatives Bill, which was in Parliament.

The Treasury made it clear that CS Mbadi had not made any statement about SACCO savings and accused the creators of the graphic of malice.

"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.

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A file photo of Treasury CS John Mbadi.

​"Cabinet Secretary Hon. FCPA John Mbadi has made no such statement. The public is advised to ignore this fabricated graphic and rely only on official communication channels for accurate updates," the statement read in part.

Mbadi issued a subsequent statement distancing himself from the post. He claimed that the allegation was made to damage the reputation of the government and cause anxiety.

"Fellow Kenyans, my attention has been drawn to some false information doing rounds, claiming that the Government of Kenya intends to borrow money from SACCOs to fund projects through NIF.

"It's maliciously choreographed to misinform the public, taint government and elicit public uproar. Treat it as fake!" the CS wrote.

Speaking about the Bill on July 4, Deputy President Kithure Kindiki explained that the Cooperatives Bill was part of the government's reforms in the cooperatives sector.

Kindiki explained that the reforms are aimed at creating more transparent, better-governed, professionally run, financially resilient and technology-driven institutions.

"The vision is to make cooperatives stronger drivers of Kenya’s economic transformation into the future, the DP wrote.