Cooperatives Cabinet Secretary Simon Chelugui has urged cooperatives and SACCOs to ensure that depositors' funds are secure.
Speaking in Mombasa during the Cooperatives' Alliance of Kenya forum, Chelugui also asked the Saccos Regulatory Authority (SASRA) to seal all loopholes and ensure that the law is strictly adhered to.
The CS lauded the move by lenders to embrace technology saying this will eliminate suspicious activities and urged managers to enforce high levels of integrity.
"Technology has become a driving force behind change in almost every industry and indeed plays an integral role in sustaining cooperatives by offering the ability to manage resources, improve efficiency and create products and solutions in line with the needs of the end users," he said.
But, technology cannot work alone, he said.
"Behind every transformational technology, there must be a transformational leader."
Chelugui advised that it would be prudent to invest in cyber security due to the rapid increase in cybercrime which has emerged as an issue of great concern across the divide.
"I urge all SACCOs to implement strong and proper internal controls to protect members’ investments," he said.
Government’s Bottom-up economic model is best exemplified by the cooperatives business model that taps its strength from their members.
Mobilisation of those at the bottom of the pyramid, Chelugui said, can effectively be done through cooperatives.
He also highlighted the impact of cooperatives saying it plays a key role in socio-economic development in the country.
Kenya has over 28,000 cooperatives with a membership of over 14 million.
The cooperatives sector controls assets worth of over Sh1.5 trillion having accumulated savings to the tune Sh1 trillion.
The sector has advanced loans and advances in excess of Sh980 billion.
