This archive report was first published on 15 August 2019.
On August 15, 2019, the financial landscape in Kenya underwent a significant shift as Savings and Credit Cooperative Societies (Saccos) began embracing digital lending to stay ahead of the market trend.
With the rise of independent digital lenders such as Tala, Branch, and commercial banks like Equity and KCB, Saccos have had to rethink their strategy to remain competitive.
Nation Sacco, one of the ten Saccos to join the digital lending space, sent a message to its members, 'Don't get stuck to sort out emergencies. Jisort na M-advance today by dialing our code.'
While Saccos have entered the digital lending space, they still adhere to Kenyan laws, which require them to provide credit to their members based on their shares held. Members contribute monthly, and loans are given depending on the shares held.
The entrance of Saccos into digital lending is seen as a move to protect their interests and prevent members from relying on other sources for short-term loans.
Furthermore, Saccos have revised their lending terms, allowing members to borrow up to four times their savings, a significant increase from the previous limit of three times their savings with shorter repayment periods.
