The government has dismissed claims that it plans to use members’ Savings and Credit Cooperative Societies (SACCOs) deposits to finance the National Infrastructure Fund (NIF), assuring Kenyans that the savings will remain under the control of individual SACCOs.

The clarification follows concerns over reports suggesting that more than KSh1 trillion held by SACCOs could be be used to support infrastructure development.

Speaking during Ushirika Day celebrations on Monday, July 6, 2026, Principal Secretary for the State Department for Co-operatives, Patrick Kilemi, said SACCO deposits belong to members and are managed independently by elected officials of their respective societies.

“SACCO funds remain the property of the respective SACCOs and are managed exclusively by the elected officials. The Government of Kenya has no access to, nor does it intend to utilise these funds,” Kilemi said.

The National Infrastructure Fund was established under the National Infrastructure Fund Act, 2026, to mobilise financing for major infrastructure projects in sectors such as transport, energy, water, irrigation, digital connectivity and agriculture.

According to the government, the fund will raise capital from multiple sources, including equity investments, debt instruments, public-private partnerships, pension funds, privatisation proceeds and capital markets.

The fund will be overseen by a Governing Council chaired by the Cabinet Secretary for the National Treasury, alongside other government officials and independent members.

The government says the new financing model is designed to reduce reliance on borrowing while accelerating the implementation of priority infrastructure projects across the country.