Meet Naftal Nyabuto, the Innovator Driving Technological Transformation in the Sacco Industry
“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” – Charles Darwin.
Those were the first words Mr. Naftal Nyabuto, CEO, Mzawadi Group, uttered when we met him. What struck me was his composure as a tech guru and the calmness of a CEO. We couldn’t fail to notice the many phone calls he was receiving and the respect he commanded around the room and the premises as we went around meeting the staff. His first words about the interview were, “If the Sacco sector relies on its historical ability to mobilize deposits and the goodwill of its members, then it has no future because traditional cooperatives will one day be replaced by digital and virtual Saccos,” he said as he moved closer to our interview desk.
Naftal leads several brands that have innovated leading and best-selling solutions in Africa, such as Mzawadi Loyalty (www.mzawadi.com), Coupon Kenya (www.couponkenya.com), Digital Voucher Solution (www.ezawadi.co.ke), Construction Technology (www.nyumbamkononi.com), Purpose-driven Savings and Agritech Solutions (www.habahabakenya.com), Legal AI (www.wakili.org and www.wakiliai.com), a Centralized sacco solutions portal (www.saccocentral.co.ke) and Route to market solution (www.sokojumla.com).
He has created AI solutions for the industry and transforming Saccos with AI solutions. His achievements and innovations have received awards across Africa, and Naftal is known for his speaking prowess in various conferences worldwide discussing about transformation and technology.
You are one of the most sought-out IT and product reengineering Guru. Who are you?
With over 16 years of experience developing solutions for multi-million dollar programs for the EU, UNDP, UNEP, IFAD, ADB, Pan-African organizations, and governments, I am passionate about connecting technology to business solutions and growth. I believe technology should be a foundation, not just an enabler. I have crafted strategic plans for both the private sector and government that focus on tech-driven growth. My work is to help organizations start their transformation journeys and avoid supplier-led strategies, ensuring technology is integral to achieving sustainable business success.
You have been branded Mr AI in the Sacco space , tell us the story
Being branded as “Mr. AI” in the Sacco space began with the creation of Kenya’s first legal chatbot and platform, www.wakili.org. This platform became incredibly popular, evolving into a household AI lawyer recognized on the international stage. This success fueled our hunger to transform more sectors through AI. We are demonstrating to Saccos that AI is a great equalizer, providing them with an opportunity to lead in technology adoption. We are now creating a bouquet of Sacco AI solutions that will transform any Sacco that is going to be a first adopter. The team that I lead is continuously disrupting many industries with AI and we feel like , this story has just begun, we can now show you how this AI can reduce costs of marketing, data analytics ,risk ,acquisition, operational efficiency and decision making.
A spider doesn’t go hunting; it builds a web, sits in the middle, and waits for the prey to be trapped. Its energies are directed toward strengthening the web rather than hunting.
~ Naftal Nyabuto, a Tech Expert
Everybody is talking about AI, what is different with your company?
We go beyond the hype by deeply understanding the sectors we serve, from Saccos, Manufacturing to agritech, and develop AI-driven strategies that deliver measurable results. For example, we are creating AI solutions Saccos focusing on customer service , Credit scoring, marketing and promotional campaigns , risk assessment , profiling and recommendation engine among others.This are transformative solutions that will put any Sacco on the front face and different them from others. This commitment to practical, transformative AI sets us apart in the industry.
What is unique about your approach?
Our company, mZawadi, has a great team of innovators and professionals dedicated to ensuring success. The secret to our success lies in extensive research and development, focusing on industry challenges. For instance, the cooperative industry faces challenges in innovation, competitiveness, differentiation, and automation. To address these, Saccos need to corporatize by reengineering their processes, human resources, and product positioning, and embracing continuous improvement, or Kaizen. I often speak to CEOs about the principle from Zen Buddhism’s shoshin: practicing a beginner’s mind. With years of experience,Sacco leaders are often tempted to develop preconceived attitudes. As a CEO, relearning and unlearning the old ways is essential to be a true shoshin. When you have a beginner’s mind, you’re willing to learn and consider all information. This is the mindset of our team.
Your first product was Mzawadi loyalty, tell us how that has been evolved over time
We transformed loyalty programs from transaction-based to behavior-change tools designed to help companies achieve more. We’re proud to be the biggest loyalty company in Africa, with Pan-African companies in East Africa using our program. For example, in Saccos, mZawadi loyalty helps increase member onboarding, referrals, transactions, and uptake of alternative channels like mobile banking. Other Saccos use our program to reactivate dormant accounts, increase share capital savings, enhance sub-account opening, and encourage early loan repayments. We’ve seen tremendous success and numerous benefits from our loyalty programs in these areas.
We followed up your journey and companies you have transformed. How has been that journey of helping businesses evolve?
In every business I have led or worked with, I have consistently applied the Blue Ocean Strategy as the best 21st-century approach to strategic management and the Spider Web Economy as a sustainability model to stay ahead. I guide them through three months of rapid results initiatives, focusing on resetting, relearning, reengineering, and refocusing.
At mZawadi, we adopt the same approach in our tech solutions, customizing them to create differentiation. The industry cannot compete if all solutions are developed the same way. Tech solutions should not change your strategy but should enhance it. This philosophy ensures that our innovations not only stand out but also effectively support our clients’ strategic goals.
You launched a deposit mobilization solution for Saccos, tell us about it.
We observed that most Saccos struggle to mobilize deposits beyond the traditional monthly contributions from members. This approach inevitably reaches a point of stagnation. To address this, we developed a revolutionary micro-saving technology that leverages member behaviors to mobilize deposits. This solution not only helps mobilize deposits but also increases the uptake of loans.
You told us also how you have helped organisations reduce their cost of advertising and acquisition. What are these technologies?
Ask yourself, why is the cost of marketing and advertising increasing by almost 20% each year? The answer is simple: traditional methods of marketing are becoming costlier by the day. Our product
Coupon Kenya, addresses this by introducing easier ways for Saccos to leverage digital marketing, social media marketing, and digital campaigns. These strategies can target younger generations to join the Sacco and ensure the Sacco gets maximum visibility with minimal investment.
What are some of the Saccos you are currently working with?
We have worked with Saccos like Imarika Sacco, Ports DT Sacco, Univision Sacco, Ndege Chai Sacco, and Mwalimu National Sacco, just to mention a few. We have helped dozens of Saccos in the industry reengineer themselves and prepare for a technology takeoff. I am proud of the support we have received from many Saccos as we work together toward fulfilling this dream.
You have authored one of the bestselling business books ‘Spider web economy- collaboration is the new economy’ tell us a little about it.
A spider doesn’t go hunting; it builds a web, sits in the middle, and waits for the prey to be trapped. Its energies are directed toward strengthening the web rather than hunting. That is the summary of my book. I studied hundreds of successful companies and interviewed numerous CEOs before developing these new approaches to keep companies ahead and sustain their growth. I authored this book to challenge traditional business theories and provide business leaders with new perspectives on leading 21st-century companies in this technological age.
What message do you have for the industry?
Keep innovating, keep experimenting and be open to new ideas and continuous learning and improvement.
