Technology Sharing Key To Lowering Sacco Costs, Leaders Told
By Admin Friday, 11th September 2026
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Savings and Credit Cooperative Societies (SACCOs) and other cooperatives have been urged to work together in developing and sharing technology solutions as the sector seeks to lower the cost of digital transformation and improve the quality of services offered to members.
Co-operative Alliance of Kenya (CAK) Chief Executive Officer Daniel Marube said individual SACCOs should explore ways of collaborating in the development and adoption of technology rather than each institution investing separately in expensive financial systems, cybersecurity solutions and digital products.
Speaking during a three-day cooperative leaders’ meeting in Naivasha, Marube said cooperation in technology could allow SACCOs to share expertise, reduce acquisition costs and create solutions that respond more effectively to the needs of their members.
The meeting, organised by CAK in collaboration with the Institute of Directors – Kenya, brought together cooperative leaders and senior executives to discuss governance, digital transformation, investment, sustainability and human resource development under the theme, “Leading Future-Ready Cooperatives and SACCOs: Governance, Digital Transformation and Sustainability in a Disruptive World.”
Technology as a Driver of Financial Inclusion
Marube said technology was no longer an optional investment for cooperatives but an important tool for remaining competitive in a rapidly changing financial services environment.
He noted that Kenya’s population is increasingly youthful and digitally connected, creating a need for SACCOs to rethink how they deliver financial services and engage their members.
“We are no longer the old cooperatives people knew. We are enablers of financial inclusion in this country,” he said.
According to Marube, SACCOs need to adopt technologies that make it easier for members to access services while also enabling institutions to develop products that respond to the different economic activities and financial needs of their members.
He pointed to agricultural cooperatives as an example, noting that technology could help SACCOs design financial products around the income cycles of specific groups.
“For example, with coffee farmers we can develop products to suit the cycle of production so that their loans can be repaid when the product is produced,” he said.
Such approaches, he said, would allow cooperatives to move beyond standard financial products and develop solutions based on the actual circumstances of their members.
The Case for Shared Technology
For many SACCOs, digital transformation can be expensive. Institutions may need to invest in core banking systems, mobile applications, cybersecurity, data protection, digital payment platforms and skilled technology personnel.
Marube challenged the cooperative movement to consider whether every SACCO needs to develop or acquire these capabilities independently.
By establishing protocols for developing and sharing technologies, cooperatives could potentially spread the cost of investment across institutions while improving access to specialised expertise.
Shared technology platforms could also make it easier for SACCOs to benefit from software developers, cybersecurity professionals and other technical specialists who may otherwise be difficult or expensive for individual institutions to employ.
Such collaboration would also create opportunities for the cooperative movement to develop solutions specifically designed for the Kenyan market and the unique needs of cooperative members.
The approach reflects one of the fundamental principles of the cooperative movement: working together to achieve outcomes that may be difficult to achieve individually.
Strong Governance Must Accompany Digital Transformation
While technology was a major focus of the meeting, Marube emphasised that digital transformation must go hand in hand with strong governance.
As SACCOs increasingly manage large amounts of members’ savings and provide services similar to other financial institutions, leaders must ensure that decisions are guided by accountability, transparency and sound management practices.
He particularly cautioned cooperative leaders against investments promising unusually high returns.
Marube said leaders should investigate the source of exceptionally high returns before committing members’ funds, noting that attractive promises could conceal significant risks.
“Whenever our cooperatives are being enticed to investments that are giving very high interest rates, we need to dig further to find out where this interest is going to come from,” he said.
He warned against pyramid schemes and other high-risk ventures, urging cooperatives to apply sound investment principles and prioritise the safety of members’ savings.
The message is particularly important as cooperatives seek new investment opportunities to grow their assets and generate additional income. Leaders, he said, have a responsibility to ensure that the pursuit of returns does not expose members’ money to unnecessary risks.
Professional People for a Professional Sector
Marube also called for greater professionalisation of the cooperative movement, particularly in the recruitment and management of staff.
He urged SACCOs to appoint employees based on qualifications, skills and competence rather than personal relationships.
He warned that nepotism and weak recruitment practices could undermine institutions at a time when SACCOs are becoming increasingly important providers of financial services.
“Our members require efficient, transparent, accountable, and quick services from people who have learned, who understand technology, and who understand our business model,” he said.
Professional staff, he added, are essential for helping SACCOs take advantage of technology while maintaining appropriate controls and delivering quality services to members.
Continuous Learning for Cooperative Leaders
CAK National Vice-Chairman Silas Magut stressed the importance of continuous training for cooperative leaders and staff.
He said the changing operating environment meant that cooperative leaders could not depend solely on knowledge acquired when they first joined the movement.
Magut said CAK had prioritised continuous capacity building to ensure that leaders have the knowledge and skills required to manage modern cooperatives and SACCOs.
“Cooperative Alliance of Kenya has trained quite a number of our movement leadership so that in their own SACCOS they continue doing the kind of work that is required for a modern-day SACCO movement,” he said.
He added that CAK planned to hold additional training sessions before the end of the year.
Protecting Members in a Digital Economy
For cooperative leaders, the shift towards digital services also brings greater responsibility for protecting members’ data and savings.
New Forties SACCO board member Ann Ngunjiri, from Nyeri, said the training had strengthened her understanding of the importance of safeguarding members’ information and financial resources.
She encouraged Kenyans who have not yet joined SACCOs to consider becoming members, describing cooperatives as an important avenue for saving and investment.
Ngunjiri also highlighted the growing financial strength of women through savings, noting that women are increasingly building substantial financial resources through cooperative societies.
“Most of the Kenyan women are strong savers, and not just saving but saving in large numbers. They are commanding a huge amount of capital,” she said.
However, she noted that members must also keep pace with technological changes as financial services become increasingly digital.
Building the Cooperative of the Future
The discussions in Naivasha highlighted a broader transformation taking place across Kenya’s cooperative movement.
The SACCO of the future will need more than savings and lending products. It will need secure digital platforms, skilled professionals, responsive products, strong governance and leaders capable of making informed decisions in a rapidly changing environment.
Technology sharing could play an important role in making this transformation more affordable. By working together, SACCOs can potentially reduce duplication, pool expertise and develop solutions that benefit a wider section of the cooperative movement.
At the same time, technology must be supported by responsible leadership. Strong governance, prudent investment, professional recruitment and continuous training will remain essential to ensuring that digital transformation creates lasting value for members.
As Kenya’s young and increasingly digital population continues to shape the financial services landscape, cooperatives have an opportunity to position themselves at the centre of financial inclusion.
The future of the movement, the leaders observed, will depend on its ability to combine the cooperative principle of working together with modern technology, professional management and responsible governance to build institutions that are trusted, competitive and ready for the next generation of members.