This archive report was first published on 19 August 2021.
Published on August 19, 2021, a report by Serianu, a cybersecurity consulting firm, has revealed that most Saccos in Kenya are struggling to comply with the requirements of the data protection act and manage the information they obtain from members and customers.
According to the report, which is based on an extensive survey among sacco leaders and managers across the country, Saccos are increasingly investing in technology and security but are still unprepared for the Data Protection Law.
Joseph Mathenge, Serianu's Chief Operating Officer, noted that this lack of preparedness exposes Saccos to the risk of being fined penalties of up to Sh. 5 million each for non-compliance.
Mathenge also highlighted the need for Saccos to improve their security levels, citing the risk of losing at least Sh. 10 million per transaction due to inadequate security measures.
Dr. Catherine Ngahu, Executive Chairman of the SBO Research, called for Kenyan Saccos to embrace radical initiatives, including sharing technology infrastructure, merging to achieve larger economies of scale, and implementing better member engagement programs.
Ngahu emphasized the need for Saccos to rethink their operating models and establish new ways of being attractive to members, particularly the youth who view Saccos as serving older people.
She also challenged Sacco leaders to become more innovative with their offerings, pointing out the potential for Saccos to address the needs of 'gig workers' and meet the convenience level sought by young people.
