NCBA Urges SACCOs to Reinvent with Trust, Innovation, and Youth Inclusion

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NCBA Urges SACCOs to Reinvent with Trust, Innovation, and Youth Inclusion

As Kenya’s SACCO (Savings and Credit Cooperative) sector continues to play a critical role in financial inclusion, NCBA Bank is calling on cooperatives to re-anchor themselves on foundational values, while embracing innovation and youth inclusion to remain relevant in the digital age.

Speaking at a recent SACCO stakeholders forum, NCBA Group Managing Director John Gachora emphasized that SACCOs must be built on systems of trust, not individual personalities.

“Before choosing which SACCO to join, Kenyans should do their due diligence. But equally, SACCOs must recommit to values of transparency, collective responsibility, and mutual progress,” said Gachora.

Putting Youth at the Heart of SACCO Growth

One of the key concerns raised by NCBA is the dwindling participation of youth in SACCOs. As the country faces growing unemployment and financial instability, the cooperative movement must create space for younger members, not just as beneficiaries, but as decision-makers.

“We must ask ourselves: How are we onboarding young people into SACCOs? How are we encouraging a saving culture that speaks to them?” posed Gachora.

In line with this, NCBA recently hosted a forward-looking forum titled “Gen Z and SACCOs: Leap into the Future”, engaging young professionals, tech-savvy cooperative leaders, and regulators in a discussion about the next phase of SACCO evolution.

NCBA Urges SACCOs to Reinvent with Trust, Innovation, and Youth Inclusion

How NCBA is Supporting SACCOs

Beyond advocacy, NCBA has rolled out a suite of services and tools to help SACCOs digitize, de-risk, and grow:

1. Smart SACCO Solutions

Through its Smart SACCO Solutions, NCBA provides digital infrastructure for automating collections and reconciliations. These solutions include:

• Unique payment references for members,
• Real-time API notifications,
• Integration with mobile money and bank transfers,
• Dedicated onboarding and technical support.

This helps SACCOs cut administrative costs and improve operational efficiency.

2. Digital Banking and Collections

The bank supports SACCOs with modern financial tools such as:

• Check-off systems and direct debits for employer-based members,
• Virtual accounts that simplify diaspora contributions,
• Host-to-host integrations and secure online banking platforms.

These innovations enhance transparency and convenience for both members and SACCO staff.

3. Cybersecurity Support

NCBA has invested more than KES 3.9 billion in cybersecurity enhancements and is sharing this expertise with SACCOs through training and awareness forums.

“As SACCOs digitize their services, they must also secure their systems. We are helping them protect member data, prevent fraud, and build resilience,” the bank said in a statement.

4. Credit Insurance for Agribusiness Loans

Recognizing that many SACCOs support farmers, NCBA has introduced credit insurance to protect members from crop failure-related defaults. The insurance, offered through NCBA Insurance, steps in when natural disasters or market shocks affect repayments, offering peace of mind for both borrower and lender.

5. Investment and Treasury Services

NCBA also offers SACCOs access to:

• Call and fixed deposit accounts to earn interest on surplus funds,
• Investment banking services for large cooperatives looking to diversify income through structured products or capital markets.

Growing Confidence in the Sector

NCBA’s approach is resonating. The bank’s SACCO banking market share grew from 1.8% in 2022 to 12.6% by the third quarter of 2023, indicating strong adoption of its offerings among cooperatives nationwide.

With a focus on values, digital transformation, and financial security, NCBA is positioning itself not only as a banking partner but also as a trusted enabler of sustainable cooperative growth.

Looking Ahead

The message is clear: SACCOs must evolve to meet modern challenges without losing sight of their original mission, people helping people.

With the right support, strong systems, and a firm commitment to youth and technology, Kenya’s SACCOs can remain vital engines of economic empowerment for generations to come.

“Let’s build SACCOs that are transparent, inclusive, and future-ready,” Gachora concluded.

https://africabusinessnews.co.ke/ncba-hosts-sacco-forum-to-boost-governance-and-innovation/