On Monday, Kenya urged East African governments to enhance their investments in national cybersecurity strategies to protect savings and credit cooperatives (SACCOs) from rising cyber threats.
Wycliffe Oparanya, Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), highlighted the pivotal role SACCOs play in the economic stability of many African countries. “Governments need to prioritize the development of national cybersecurity frameworks and foster collaboration with both local and international stakeholders,” Oparanya stated in a speech delivered by Principal Secretary Susan Mang’eli.
Speaking at a forum on SACCOs, banking, and cybersecurity in Nairobi, Mang’eli underscored the urgent need for greater awareness, capacity-building, and the creation of early warning systems to detect and respond to cyber incidents. She emphasized the importance of developing cybersecurity policies, laws, and regulations tailored to the specific needs of SACCOs and similar financial institutions, which are particularly vulnerable due to their reliance on digital platforms.
Mang’eli called for the establishment of public key infrastructure and intensified research and development in cybersecurity, specifically to safeguard SACCOs.
SACCOs are designed to provide financial services to individuals who are often excluded from traditional banking, including low-income earners, small-business owners, and rural communities. These cooperatives offer financial services without requiring assets as collateral, allowing members to access credit through their deposits and the security of guarantors.
In Kenya, SACCOs significantly impact the economy, contributing 30 percent of national housing savings and 40 percent of the country’s gross domestic product (GDP), according to government data. Similarly, in Tanzania, cooperatives, including SACCOs, contribute around 40 percent to the GDP and provide employment to 94.7 percent of school-leavers annually. Many of these young individuals, particularly in rural areas, rely on cooperative movements for financial support.
