Safety fears for Saccos

Cooperatives CEOs empowered on technology adoption

In 2018, the output of the ICT sector expanded by 12.9 per cent to Sh390.2 billion supported mainly by growth in the digital economy.

In Summary

• Economic Survey of 2019 shows the access to and use of ICT is on an upward trend due to rapid developments in the sector.

Alice Kosgei, CEO Kenya Highlands Sacco,Vincent Marangu director co-operatives banking Division at Co-operative Bank with Ali Noor Ismail, PS State Department of Co-operatives at the National Co-operative CEOs’ Workshop in Mombasa from 7th to 9th May under the theme ‘Technology and Innovation for Sustainable and Inclusive Development’.
Alice Kosgei, CEO Kenya Highlands Sacco,Vincent Marangu director co-operatives banking Division at Co-operative Bank with Ali Noor Ismail, PS State Department of Co-operatives at the National Co-operative CEOs’ Workshop in Mombasa from 7th to 9th May under the theme ‘Technology and Innovation for Sustainable and Inclusive Development’.
Image: courtesy

PS State Department for Co-operative Development Ali Noor Ismail has cautioned cooperatives on the need to be vigilant before taking up partnerships that offer risk solutions and ensure balance in terms of convenience and security.

“We have had many reported cases of Cooperatives losing either money or data to unethical system hackers," he said during a three-day workshop by Co-operative Consultancy and Insurance Agency, to engage CEOs on thinking about technology beyond adoption in managing the associated risks.

These hackings were possible because Cooperatives compromised on their system security either by not investing in the correct technology, lack of due diligence on partners they engaged in or even investing in your own staff who manage your systems,” Ismail said.

Economic Survey of 2019 shows the access to and use of ICT is on an upward trend due to rapid developments in the sector, as a result of service providers investing in the latest technologies and infrastructure.

In 2018, the output of the ICT sector expanded by 12.9 per cent to Sh390.2 billion supported mainly by growth in the digital economy which includes; mobile telephony, uptake of e-commerce and penetration of internet. In 2018, mobile-cellular telephone subscriptions per 100 inhabitants for population aged three years and above, increased from 101.10 in 2017 to 113.70 in 2018. Internet subscriptions per 100 inhabitants increased from 78.75 in 2017 to 104.94 in 2018.

Co-operative Bank's director co-operatives division Vincent Marangu said the Proceeds of Crime and Anti Money Laundering Act (PoCAMLA) will bring on board deposit-taking saccos into mandatory reporting of large transactions in respect to prevention of money laundering and combating the financing of terrorism.