Efforts to centralize ICT platforms in reference to core banking systems (CBS), either through the launched Co-op Tech championed by the Co-operative Alliance of Kenya or the Sacco-Central championed by SASRA, should be handled with caution.
The matter has been a contention for some years now. I urge caution, research, and stakeholders’ engagement on matters centralizing core banking systems with one vendor.
We are in the digital age where we, the players, urge policies, deliberations, and advocacy (either by the government, the regulator, or, in this specific case, the apex bodies) that seek the growth of MSMEs-Fintechs making ICT an enabler as opposed to cartel growth within the digital space in Kenya, which has earned the name the Silicon Savannah of Africa.
I argue that the high risk of Fraud, System downtime, and other unforeseen tech misfortunes that befall any technology can easily paralyze the whole sector if one system or vendor provides a solution to 1000 societies.
In addition, there is a high risk of curtailing the tremendous growth in fitness, employing thousands of youth and hundreds of consultants. Kenya has attracted a couple of international fintechs that also continue to offer employment, grow local skills, and pay taxes to the government, with many penetrating the rest of Africa through Nairobi. The latest move may curtail this tremendous growth in Kenya and Africa.
The co-operative sector in Kenya is anchored under seven principles, one being autonomy and independence. Let’s champion co-operatives technology transformation while avoiding dictating the choice of provider.
I call for stakeholder engagement on the subject since the move may restrain the government’s development agenda on the growth of the MSMEs economy, digital and creative economy.
Martin Kathurima, Financial Technology, and Sacco Banking Consultant.
