Saccos urged to embrace technology to attract young savers

Sidian Bank CEO Chege Thumbi speaking in Kisumu./FAITH MATETE

Savings and Credit Cooperative Societies (Saccos) in the country urged to embrace technology and modernize their operations to attract younger members and strengthen their financial base.

Sidian Bank Chief Executive Officer Chege Thumbi said Saccos must embrace technology, and adapt to changing members' expectations if they are to remain relevant and competitive in a rapidly evolving financial landscape.

He was speaking in Kisumu during the 5th Annual leader's summit of the Kenya Teachers Savings and Credit Associations (KETSA) where Sidian Bank reaffirmed its partnership with the teacher's saccos.

Thumbi noted that the era of technology can no longer be ignored, noting that Saccos must modernise their systems to remain competitive and relevant to a younger generation that prefers digital platforms.

“The future is digital. Young people want to join, save, borrow and invest without filling manual forms or visiting physical offices. Saccos must simplify their processes through technology,” he said.

Growth Tied to Sacco Partnerships

Thumbi said partnerships with more than 120 Saccos across the country have contributed significantly to the bank’s expansion over the past decade.

According to the CEO, the bank’s balance sheet has grown from Sh17 billion in 2017 to over Sh90 billion in 2026.

By the end of the third quarter last year, the lender had reported Sh95 billion in assets and close to Sh1.5 billion in profit. It now serves more than seven million customers and disburses over Sh1 billion daily through digital platforms.

He noted that deposits have increased more than five-fold in the last five years, largely driven by collaborations with cooperative societies.

Through the partnerships, the bank offers remote cheque scanning, integration with Sacco core banking systems, investment products and liquidity support where Saccos face funding shortfalls.

The lender also supports teachers’ check-off loans, currently disbursing close to Sh1 billion under that arrangement.

“This partnership enables us to reach teachers even in areas where we do not have branches,” Thumbi said.

Beyond Traditional Lending Beyond credit facilities, discussions at the conference focused on the need for Saccos to diversify their services.

Thumbi said cooperative societies should explore insurance products, health savings schemes, and other member-driven solutions that go beyond loans.

“Teachers number over 300,000 in this country. When you include their families, that is millions of people. Saccos can have a much bigger impact if they innovate,” he said.

He added that the bank also provides governance support, enterprise risk management training, and cybersecurity capacity building to strengthen Sacco operations.

KETSA Chairman Robert Njue said the association is working to bring smaller and emerging teachers’ Saccos on board, especially those that may not yet be financially stable.

“Many established teachers’ Saccos are already members. We are now reaching out to smaller ones so they can benefit from partnerships and shared knowledge,” he said.

The Kisumu meeting brought together Sacco leaders from across the country to deliberate on governance, innovation, and long-term sustainability.