In response to the escalating cybersecurity risks facing Savings and Credit Cooperative Organizations (Saccos), NCBA Bank hosted a crucial forum in Nairobi on Monday. The event brought together key stakeholders to address the unique challenges Saccos encounter in fortifying their digital defenses.
NCBA Group Managing Director John Gachora set the tone for the forum, highlighting the vital role Saccos play in Kenya’s economy. “Saccos control over 30 percent of national savings and contribute more than 40 percent to our country’s GDP,” Gachora stated, underscoring the sector’s significance and the urgent need for robust cybersecurity measures.
The forum revealed that Saccos face two primary obstacles in implementing effective cybersecurity strategies: the high costs associated with acquiring and maintaining Information and Communication Technology (ICT) infrastructure, and the rapidly evolving nature of cyber threats.
To combat these challenges, NCBA unveiled a suite of innovative Sacco banking solutions. These include: Virtual accounts for diaspora remittances, Check-off automation, Open banking interfaces and Automated direct debits.
These solutions are designed not only to enhance operational efficiency but also to strengthen cyber defenses and improve service delivery for Saccos.
Gachora emphasized NCBA’s commitment to cybersecurity, revealing a substantial investment of $31 million (Sh6.5 billion) in the previous year to bolster the bank’s own cybersecurity infrastructure. This move demonstrates the scale of investment required to stay ahead of cyber threats in the financial sector.
Cabinet Secretary for Co-operatives and Micro Small and Medium Enterprises Development, Wycliffe Oparanya, attended the event and stressed the need for enhanced collaboration between the government and private sector. “We must work together to build resilience within our Sacco sector,” Oparanya urged, acknowledging the government’s role in creating a conducive regulatory environment.
The forum also addressed the broader economic context, with Gachora emphasizing the importance of collaboration between the private sector, Saccos, and the state in driving economic transformation. He praised the government’s ongoing support in developing an enabling regulatory framework for the sector.
As Saccos continue to digitize their operations, the need for robust cybersecurity measures becomes increasingly critical. The NCBA forum served as a wake-up call for the sector, highlighting both the challenges and potential solutions in this rapidly evolving digital landscape.