This archive report was first published on 19 August 2021.
Published on August 19, 2021, a new report by cyber security consulting firm Serianu highlights the struggles of Saccos in Kenya to comply with the data protection act and manage customer information.
The report, which is the third annual Sacco Technology Report, found that despite increased investments in technology and digitization, Saccos are lagging behind in data protection and cyber security.
According to Serianu Chief Operating Officer Joseph Mathenge, while more Saccos have embraced digital technology, they are still unprepared to implement the data protection law for their members and customers.
“Our research indicates that Saccos are increasingly investing more resources in technology and security but most are still unprepared for the Data protection law”, said Mathenge.
This lack of preparedness exposes Saccos to the risk of being fined penalties of up to Kshs 5 million each for non-compliance.
Mathenge also noted that Saccos are lagging behind in security, even as they ramp up investments in technology and digitization, putting them at risk of losing at least Kshs 10 million per transaction.
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.
These steps, she explained, have the potential to double the current national Sacco membership and give the sector an additional Kshs 200 billion in assets.
