NCBA Group, Kenya’s third-largest bank by assets, has invested $31 million (KES 3.99 billion) in the past year alone to strengthen its cybersecurity infrastructure as it partners with the country’s savings and credit cooperatives (SACCOs) to enhance their digital resilience.
The move comes amid growing concerns over the high costs and technical expertise required for SACCOs to protect themselves against the evolving cyber threat landscape.
NCBA’s suite of innovative SACCO banking solutions, including virtual accounts for diaspora remittances, check-off automation, open banking, and automated direct debits, aims to improve operational efficiency and cybersecurity in the sector.
“Collaboration between the private sector, SACCOs, and the government is crucial to drive Kenya’s economic transformation,” said NCBA Group Managing Director John Gachora. “SACCOs are pivotal to the country’s economy, controlling over 30% of national savings and contributing over 40% of GDP.”
The Kenyan government has also pledged its support, with Wycliffe Oparanya, Cabinet Secretary for Co-operatives and MSMEs Development, praising NCBA’s leadership in cybersecurity innovation and reaffirming the government’s commitment to fostering a conducive environment for SACCOs through digital transformation and policy reforms.
However, SACCOs face significant challenges, including the high costs of acquiring and maintaining information and communication technology (ICT) infrastructure, as well as a shortage of specialized personnel to manage and mitigate cyber risks in real-time.
“Leveraging technology is not just essential, but a prerequisite for SACCOs to remain relevant and competitive,” Gachora said. “In an environment where financial institutions are rapidly adopting innovative technologies, SACCOs must not only secure their operations but also enhance their service delivery to keep pace with industry peers.”
The NCBA SACCO Banking Forum, held at the Serena Hotel in Nairobi, brought together key stakeholders to address these critical issues and explore solutions to strengthen the sector’s resilience against the escalating wave of cyber-attacks.
