In response to the rising wave of cyber threats targeting the financial sector, NCBA Group hosted a key forum aimed at guiding SACCOs (Savings and Credit Cooperative Organizations) in fortifying their cybersecurity defenses. Held at the Serena Hotel, Nairobi, the event brought together key stakeholders to address the challenges SACCOs face in an increasingly digital landscape.
The forum, organized by NCBA’s Sacco Banking Division, showcased a suite of innovative solutions designed to enhance both operational efficiency and cybersecurity resilience. These solutions include Virtual Accounts for Diaspora Remittances, Check-Off Automation, Open Banking, and Automated Direct Debits, all of which aim to strengthen the digital infrastructure of SACCOs while improving service delivery.
NCBA Group Managing Director, John Gachora, highlighted the essential role that SACCOs play in Kenya’s economic development, controlling over 30% of national savings and contributing more than 40% of the country’s GDP. He emphasized the need for a collective effort between the private sector, SACCOs, and the government to bolster cybersecurity, pointing out that NCBA had invested $31 million in cybersecurity infrastructure last year alone.
Wycliffe Oparanya, Cabinet Secretary for Co-operatives and MSMEs Development, acknowledged the pivotal role SACCOs hold within Kenya’s economy and stressed the importance of collaboration between the government and private institutions in supporting SACCOs’ digital transformation. Oparanya praised NCBA’s leadership in cybersecurity innovation and reaffirmed the government’s commitment to fostering a conducive environment for SACCOs through policy reforms and digital transformation initiatives.
Challenges in Cybersecurity for SACCOs
A key discussion point at the forum was the high costs associated with acquiring and maintaining Information and Communication Technology (ICT) infrastructure, which has emerged as a significant challenge for SACCOs in implementing effective cybersecurity strategies. SACCOs face constant risks from evolving cyber threats, making it essential to not only invest in advanced technological solutions but also in upskilling their workforce to manage emerging risks in real-time.
Furthermore, the forum recognized the limited availability of specialized personnel to handle cybersecurity challenges, which makes SACCOs more vulnerable to cybercriminals. This lack of human resource capacity underscores the urgency for SACCOs to enhance their technological capabilities and workforce development to stay ahead of cyber threats.
As financial institutions globally adopt innovative technologies, SACCOs must evolve to remain competitive in the market. Leveraging technology is no longer optional but critical for SACCOs to secure their operations and improve service delivery. Enhancing cybersecurity, operational efficiency, and service quality will enable SACCOs to keep pace with peers in the financial sector.
NCBA’s Sacco Banking Cybersecurity Forum highlighted the urgent need for SACCOs to invest in stronger cybersecurity measures to protect their operations in the digital age. With the backing of government support and NCBA’s commitment to innovation, the future of SACCOs looks promising as they navigate the complexities of the digital economy.
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