SACCOs urged to enhance financial literacy among members

SACCOs in the country have been urged to enhance financial literacy among members.

Co-operatives Cabinet Secretary Simon Chelugui says through his ministry, the Kenya Kwanza government continues to trailblaze its way as a government that is intentional in strengthening
cooperative societies in Kenya.

He says this will stimulate growth, increase financial inclusion, promote entrepreneurship, and provide access to affordable financial services and education to create a more economically empowered future for our citizens.

“I encourage SACCOs in Kenya to invest in enhancing financial literacy among members and promoting alternative digital financial solutions for the sole benefit of their members,” he said.

According to CS, this can be done through developing targeted training programs specifically for women, considering their unique financial requirements and challenges as well as partnering with women-led organizations and community groups to expand outreach and accessibility.

He was speaking on March 22, 2024 when he launched the Financial Inclusion in Kenya and Tanzania (FIKT) Project; a 2-year ambitious project jointly executed by the African Confederation Of Cooperative Savings and Credit Associations (ACCOSCA) and Visa
International Services Association (VISA International).

The project is designed to provide technical expertise and support to contribute towards harnessing financial inclusion through SACCOs in Kenya and Tanzania.

“Through this project, ACCOSCA and Visa are committed to advancing inclusive, equitable, and sustainable growth for the citizenry in both countries,” said Chelugui.

The project aims to enhance digital financial literacy and promote technology-based solutions for financial transactions and access to financial services.

The CS added that that a blend of financial education and uptake of digital ecosystems such as the Visa Card, can rapidly advance financial inclusion and economic growth for individuals and small, medium & micro businesses.

This even as the financial sector across Africa is witnessing increased uptake in digital financial systems and Kenya is currently leading the continent towards digital transformation.

SACCOs in Kenya have been working as an integral backbone of the Kenyan economy, offering financial services to Kenyans at the grassroots level.

Through the adoption of digital platforms with automated record management, we have seen enhanced service delivery, diversified products, increased membership and improved SACCO structures that promote financial performance.

The FIKT project aims to address the challenges faced by men, women,
and youth in Africa in accessing financial services and resources.

Through this initiative, ACCOSCA and Visa International are seeking to create an inclusive and enabling environment to support communities overcome financial barriers and achieve their economic aspirations.

This is a true embodiment of the cooperative principles and philosophy that guides practices in Kenya.

As is prescribed by the cooperative business model, this is a purpose driven partnership that has societal and business benefits linked to
increasing and advancing sustainable commerce to strengthen communities in Eastern Africa.

The FIKT project stands resolute in accelerating and supporting the National Government’s efforts towards providing services to the under banked ensuring that no Kenyan is left behind in our collective journey towards prosperity as envisioned by the Bottom-Up Transformation Agenda (BETA).

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