SASRA Raises Concern Over Electronic Signature Fraud Risks in Sacco Sector Recruitment, Calls for Tighter Security Measures
The use of electronic signatures has raised significant concerns for the Sacco Societies Regulatory Authority (SASRA), with the potential for forgery posing a substantial risk, particularly in the recruitment processes of Sacco staff. SASRA’s CEO, Mr. Peter Njuguna, has highlighted the pressing need to address this issue within the industry’s digital transformation, emphasizing that electronic signatures could be susceptible to abuse when shared remotely for authorization purposes.
Mr. Njuguna stressed the urgency of adopting more secure digital signing methods to prevent misuse and safeguard the integrity of documents. He urged organizational leaders to prioritize transparency by promptly informing SASRA of staff departures, emphasizing the collective responsibility of industry players in upholding robust standards and accountability.
SASRA is actively refining its recruitment criteria for Sacco sub-sector staff to ensure that only individuals meeting specific standards are hired within the Sacco sector, with a focus on implementing stringent clearance procedures to verify candidates’ historical records and deter fraudulent activities.
During his address at the Sacco Industry Annual Regulatory Policy Roundtable 2024 in Naivasha, Mr. Njuguna highlighted collaborative efforts with the Central Bank of Kenya (CBK) to establish a mutual reporting system for individuals moving between financial institutions, underscoring the importance of protecting the sector’s integrity.
Mr. Njuguna raised concerns over potential conflicts of interest between Sacco staff and vendors in the mobile banking sector, advocating for increased vigilance to ensure the ethical conduct of industry players. He also noted the formation of a vendors’ association committed to stringent ethical standards, signaling a positive step towards upholding integrity within the industry.
