By Co-op News
More cooperative societies have digitized their operations pushed by the Covid-19 pandemic.
Savings and Credit Cooperative Societies (Saccos) are taking the lead in embracing technology, according to a Cooperative University of Kenya (CUK) new study.
The study findings were released recently during a webinar to discuss the Efficiency of Deposit taking Sacco. The survey noted that about 52.5 percent of cooperatives had moved their operations to digital platforms.
Prof Isaac Nyamongo, one of the lead researchers, noted that the pandemic had impacted heavily on the performance of Sacco operations in the country.
“Over 61 percent of the surveyed organizations reported slowed operations while 65.5 percent reported a reduction in service delivery.”
Sacco members decreased or stopped their monthly contributions due to job losses, income loss, and reduced economic activity. The study noted that 98.9 percent of Sacco members are affected economically by the pandemic.
“The pandemic created a crisis that was so sudden – causing widespread disruption,” said Prof Nyamongo, who is also the CUK Deputy Vice-Chancellor in charge of Cooperative Development, Research and Innovation.
“Economic effects of Covid-19 have been reflected in the dramatic increase in unemployment and in extreme poverty which has risen for the first time in 22 years.”
The study focused on Saccos in the aviation, horticulture, and hospitality sectors, “as these were disproportionately affected due to cessation of air travel.
The Sacco sub-sector is among those that appear to have defied the harsh impact of the pandemic on the economy, with members’ savings going up, despite the pandemic changing the patterns of credit consumption in the country among members of Savings and Credit Co-operative Societies.
