The SACCOs of the Future
Having attended several SACCO forums organized by KUSCCO, KETSA, Metropol CRB, StunnerBiz, and others, one message consistently emerges: the future of SACCOs depends on technology and the ability to attract the younger generation, particularly Gen Z.
Technology: The Need to Move Beyond Legacy Systems
Many SACCOs continue to struggle with outdated legacy systems. The common perception is that modern technology is expensive, yet few institutions are willing to engage directly with technology providers to explore affordable implementation options.
Today, many technology vendors offer Software as a Service (SaaS) solutions that eliminate the need for SACCOs to invest heavily in hardware and infrastructure. Some vendors also offer flexible payment plans extending up to five years, making technology adoption more manageable and less capital-intensive.
Unfortunately, fear of cost has left many SACCOs lagging behind technologically. At Neptune, we often say: “You don’t have to remain in a hospital bed simply because your neighbor is there. Get well, go home, and move on with life.” Similarly, SACCOs should not continue using outdated systems simply because their peers are doing the same.
Another challenge is that many SACCOs acquire core banking systems based on popularity rather than suitability. Decisions are often influenced by what other SACCOs are using, rather than by evaluating solutions that address their current needs while supporting future growth.
Even more concerning is the tendency to prioritize cost over value when procuring technology. We have seen cases where vendors use low entry prices to attract clients, only for the institutions to incur significantly higher costs over time through additional charges and system limitations. In some instances, total expenditure ends up exceeding what the highest bidder initially proposed.
Attracting the Young Generation
The declining participation of young people in SACCOs is frequently blamed on technology gaps. While technology plays an important role, I believe the larger issue is governance.
Over the years, some SACCOs have amended their by-laws in ways that make it difficult for newer members to participate in leadership and governance. In certain cases, increased share capital requirements have effectively favored long-serving members while creating barriers for younger entrants.
Today, some SACCOs require new members to contribute share capital of up to KSh 30,000 before joining, yet many existing members started with as little as KSh 100. For many young professionals, such requirements are simply unaffordable.
By contrast, commercial banks often require only an employment letter, an appointment letter, and a payslip before offering financial services and loan facilities, a far more accessible entry point for young people seeking financial support.
If SACCOs are serious about attracting the next generation, the conversation must go beyond technology. Governance reforms are equally important. SACCOs need to review and modernize their by-laws to align with current economic realities, promote inclusivity, and create opportunities for young members to participate meaningfully in leadership and decision-making.
The SACCO of the future will not be defined solely by technology, nor solely by governance. Success will come from combining modern digital solutions with progressive governance structures that welcome and empower younger generations.
Technology can improve efficiency and service delivery, but sustainable growth will depend on building institutions that are accessible, inclusive, and relevant to the needs of today’s members and tomorrow’s leaders.
The writer, Ewin Kinyua is a strategic leader with extensive experience in business development, organizational growth, and financial services. As Senior Business Development Manager at Neptune Software Group, he drives partnerships and helps financial institutions across Africa adopt innovative core banking solutions.
