The National Assembly has clarified the proposed Sacco Societies (Amendment) Bill, 2025, following widespread reports that it would give President William Ruto control over members' savings and allow the government to withdraw the funds at will.

🇰🇪 Breaking It Down

In a public statement issued on Wednesday, July 15, Parliament dismissed the reports, insisting that the Bill contains no provision allowing the President to appoint SACCO management committees.

Parliament also urged Kenyans to be cautious of misinformation and propaganda surrounding the proposed legislation, clarifying several issues that have circulated as the Bill undergoes public participation and legislative consideration.

"The Bill contains no provision allowing the President to appoint management committees. Management committees continue to be appointed by members of the respective SACCOs. Individual member SACCO societies elect board members of Secondary SACCO Societies," the National Assembly said.

📌 What You Need to Know

According to the National Assembly, the Bill is currently before the Departmental Committee on Trade, Industry and Cooperatives for public participation, where members of the public and stakeholders are submitting their views before it proceeds to the next stages of the legislative process.

Parliament also rejected claims that the Bill seeks to create a "Super SACCO," explaining that the proposed law only provides for the establishment of a Secondary SACCO Society whose membership will be restricted to Primary SACCO Societies.

It said the secondary society is intended to enable access to payment platforms, support investment systems, improve service delivery to members, facilitate easier fund disbursement, and will not lend money to individuals or the government.

"The Bill only provides for a Secondary SACCO Society whose membership is restricted to Primary SACCO Societies to enable access to payment platforms, support investment systems, improve services for members and facilitate easier fund disbursement," it added.

According to the Legislature, reports that the draft law is being rushed through the House are also not factual, noting that the Bill was published on June 30, 2025, more than a year ago, and is still undergoing public participation.

The explanation comes amid widespread reports that the government was planning to take control of saccos and members' savings, with some alleging that the National Treasury was planning to use members' savings to fund infrastructure projects.

📰 Source: Kenyans.co.ke