Over 52 Saccos set to join the National Payment System
By Grace Atieno
The actualisation of Sacco Societies Shared Services Platform is coming to completion with over 52 Deposit-Taking Saccos now having their members approve joining of the proposed Kenya Sacco Central Liquidity and Shared Services Coo-operative Society Ltd (The Sacco-Central).
The shared services platform will enable the operationalisation of the deposit insurance schemes for deposit-taking Saccos and establish a regulated shared services facility and a central liquidity facility system.
In 2017 President Uhuru Kenyatta conveyed the need to form the platform that would enable Saccos to engage in the National Payment System (NPS). The main goal is to allow Saccos to have the advantage of economies of scale that arise from having a uniform and standard provider of Management Information System (MIS) efficiently and effectively.
This constant and regular provider of Management Information System will connect the Saccos to the National Payment System and the lender of last resort – the Central Bank of Kenya. This will ensure that Saccos can successfully mobilise savings from their members in a well-organised and cutthroat way and allow the members to transact with the Saccos no matter where they are using different methods like ATM, mobile money and cheque services.
For the past three years, the Sacco Societies Regulatory Authority (SASRA) has been working to implement this mandate given by the President and have covered a lot of ground so far. For instance, the government has already prepared and authorised a legal draft and a regulatory framework for the shared services and is now awaiting execution.
All DT Saccos were invited to join together in pushing forward this initiative, and a total of 52 Saccos have expressed interest. They have also held a meeting and selected an executive committee directing the endeavour of bringing to fruition the formation of the platform for Saccos.
In addition to this, with the direction of SASRA and the office of the Commissioner for Cooperatives Development, the committee has held various meetings that resulted in the formation of a secondary cooperative (the Sacco-Central) that will provide the shared services platform.
The Sacco-Central will provide all the shared technology services to the member Sacco Societies, and any other body needing said services like MIS. It will be a secondary cooperative like any other, and though it will operate in a regulated environment, its patronage will be through member cooperatives that will elect delegates.
Although the Sacco-Central will be an ordinary secondary cooperative, it will not engage in a similar business or compete with the member Saccos. This will help prevent it from drifting from its primary objective, as has happened before.
Saccos are expected to enjoy economies of scale in having a uniform and standard provider of Management Information System (MIS) cost-effectively and efficiently.
The Sacco-Central will provide all shared technology services to member Sacco Societies, starting with MIS and other related modules as demand dictates.
World Council’s Challenge 2025 focuses on the digitisation of cooperatives recognises Shared Platforms as a significant way of connecting cooperative societies to a shared payments system that allows for mobile payments and is integrated with a national payments system.
