In a country where cooperative finance quietly underpins the livelihoods of millions, a transformative conversation is taking center stage: the vital intersection of cooperatives and fintech. At the 4th Annual Cooperative CEOs Roundtable in Nairobi, over 100 chief executives from Kenya’s Savings and Credit Co-operative Organizations (SACCOs) gathered to confront a pressing reality. Digital finance is no longer a luxury or a secondary option; it has become existential.
For decades, SACCOs have served as the financial backbone of Kenya’s informal and rural economies. From financing boda boda riders in Kilifi and teachers in Kisumu to supporting traders in Nairobi and farmers across the country, their impact is peerless. Unlike commercial banks, SACCOs are member-owned, a structure that has traditionally fostered deep-rooted trust, community accountability, and accessible credit.
However, the landscape is shifting. According to the latest industry report from the Sacco Societies Regulatory Authority, digital transactions across the sector rose by over 14% in 2024. In a nation that pioneered mobile money innovation, services like mobile-first banking, instant transfers, and seamless interoperability are now standard member expectations rather than “urban luxuries.”
The Nairobi roundtable crystallized a strategic pivot for the industry: collaboration with fintech firms will be the top priority heading into the future. Industry leaders emphasized that to remain competitive, SACCOs must modernize their core banking systems, embrace data-driven decision-making, and build interoperable platforms. This evolution also requires a heavy investment in cybersecurity resilience and the development of in-house digital talent.
Vincent Marangu, Director of the Cooperatives Banking Division at the Co-operative Bank of Kenya, framed this urgency bluntly. “The technology landscape is evolving at an unprecedented pace,” he noted. “For players in Kenya’s financial sector, constant environmental scanning is no longer optional—it is a leadership obligation.” The message was unmistakable: adapt through collaboration or risk falling into irrelevance.
This digital shift is being driven from a position of remarkable strength rather than weakness. The latest data shows the sector recorded approximately 7.39 million members in 2024, reflecting an 8% annual growth rate. Total assets also surged, expanding from Sh971 billion in 2023 to an estimated Sh1.13 trillion by late 2025. Yet, this very growth brings a new set of vulnerabilities. Large balance sheets demand more robust systems, expanding memberships require scalable platforms, and rising transaction volumes necessitate hardened cybersecurity frameworks. In short, the sector’s success now demands its reinvention.
The presence of global giants like Visa and Oracle alongside the Fintech Association of Kenya at the roundtable signaled a new era of dialogue. For years, SACCOs viewed themselves as direct competitors to commercial banks. Today, the perspective is broader. Partnerships with fintech firms are now seen as a way to unlock operational efficiency, improve regulatory compliance, and radically enhance the member experience. Interoperability—allowing members to move money seamlessly across different platforms, wallets, and payment systems—has become central to survival.
While the technology is available, the cultural shift remains the greater challenge. SACCOs are deeply rooted in traditional cooperative values: collective ownership, democratic governance, and local accountability. In contrast, fintech partnerships operate in the high-speed, venture-driven world of tech. Bridging these two worlds will require a high degree of leadership maturity, digital literacy at the board level, and comprehensive member education.
Cybersecurity also looms large as a critical concern. As systems integrate and transaction volumes climb, the exposure to digital threats naturally increases. Leaders at the forum committed to deeper collaboration regarding digital infrastructure, acknowledging that no single institution can successfully navigate these risks in isolation.
Kenya has long been recognized as a fintech powerhouse in Africa. Now, its cooperative sector is ready to claim its seat at the table.
By Morris Mwaringa
