SACCOs Collaborating on a Joint ICT Platform: Collaboration for Success

Members joining hands together to collaborate

A joint ICT platform is a shared digital infrastructure that allows multiple SACCOs to collaborate and share information. By joining forces on a joint platform, SACCOs can streamline their operations, reduce costs, and access a range of digital services. This can help them better serve their members.

In today’s rapidly evolving business landscape, collaboration is key to success. This is particularly true for Savings and Credit Cooperative Organizations (SACCOs).

SACCOs are key players in the Kenyan financial sector, providing financial services to millions of Kenyans. However, they have faced numerous challenges, including limited access to technology, high operating costs, and regulatory constraints. To overcome these challenges, many SACCOs are turning to joint ICT platforms for collaboration and growth.

Advantages of Joint ICT Platforms for SACCO Collaboration

Access to cutting-edge technology by SACCOs

Cutting-edge technology in most instances could be too expensive for SACCOs to afford and manage. This includes everything from digital banking solutions to mobile payment systems, online loan applications, and data analytics tools.

By making use of a joint ICT platform, SACCOs are not only able to reduce their technology expenses but also gain access to new revenue streams. For example, they can offer mobile banking services to their members, allowing them to perform transactions on the go. They can also use data analytics tools. This will enable them better understand their members’ needs and preferences, enabling them to tailor their services accordingly.

Promotes collaboration between SACCOs

When SACCOs work together on a shared digital infrastructure, they can share best practices and ideas, collaborate on joint marketing campaigns, and offer joint products and services.

The collaboration is particularly beneficial for smaller SACCOs, which might not have the resources to develop their own digital solutions or marketing campaigns. By partnering with larger SACCOs on a joint platform, they can leverage their expertise and resources to better serve their members.

Better risk management

By being part of a joint ICT platform, SAACOs can better manage their risks.

The joint platform enables SACCOs to share data and information. By doing this, SACCOs can better understand the risks associated with lending and investment activities.

The SACCOs can also share information on potential fraud and other security threats, enabling them to develop better risk management strategies.

Better compliance with regulatory requirements

A joint ICT platform can help SACCOs better comply with regulatory requirements.

SACCOs in a joint ICT platform can share policies and procedures which are the compliance resources. This ensures that SACCOs are meeting regulatory standards and avoiding costly penalties.

Challenges encountered by joining the joint ICT platform

One of the major challenges faced is ensuring that the platform is secure and that members’ data is protected. As a result of this, it is a noble call for SACCOs to work together to develop robust security protocols. In addition to that, there is a need to ensure that all members are adhering to them.

Another challenge is ensuring that the digital platform is user-friendly and accessible to all members. SACCOs must work together to ensure that the platform is easy to use and that all members can access the resources they need.

Finally, SACCOs must work together to ensure that they can effectively manage the platform. This includes ensuring that all members contribute to the platform’s maintenance and development. Also, there should be clear communication and collaboration among all members.

The Role of the Government in Supporting Joint ICT Platforms for SACCO Collaboration

The government of Kenya has recognized the importance of joint ICT platforms for SACCO collaboration. As a result, the government has taken steps to support this trend.

The Co-operative Alliance of Kenya (CAK) has launched an Sh800 million technology platform to ensure the safety of depositors’ funds in SACCOs in the wake of growing fraud.

The Co-opTech platform, a financial technology company owned by the cooperative lobby, will oversee the security of depositors’ funds through a shared platform that will be used by all SACCOs in their daily transactions.

Therefore, the government is keenly ensuring that SACCOs can manage their resources, improve efficiency and create products and solutions in line with their needs.

Saccos will own the platform by buying shares. Small ones will pay between Sh350,000 and Sh500,000. On the other hand, the big boys will part with up to Sh10 million as a one-off payment.

The new technology seeks to make affordable core banking services for cooperative organizations that have been struggling to raise the huge budget to procure and maintain versatile transaction systems to deter fraud.

The platform is embedded with a shared fund management system that supports inter-sacco lending.

In addition, the government has also launched the Digital Literacy Programme. The program aims to equip SACCO members with the skills they need to fully utilize joint ICT platforms. Also, through it, SACCO members can learn how to use digital tools and resources. This is key to enhancing their financial literacy, managing their finances more effectively, and accessing a range of digital services.

As SACCOs continue to evolve in response to changing market conditions, joint ICT platforms will likely become an increasingly important tool for collaboration and growth. Therefore, by embracing these platforms, SACCOs can position themselves for success in the digital age.


In conclusion, the collaboration of SACCOs on a joint ICT platform is a powerful tool for enhancing their services and improving their financial performance. By sharing digital resources, SACCOs can reduce their technology expenses, gain access to new revenue streams, and better manage their risks. Moreover, the collaboration between SACCOs on a joint ICT platform can promote best practices, joint marketing campaigns, and the offering of joint products and services.

While there are challenges associated with joining a joint ICT platform, the government of Kenya has taken steps to support SACCOs in their adoption of these platforms. This will enable SACCOs to be better equipped to provide high-quality financial services to their members. The SACCOs can also strengthen their financial positions, and contribute to the overall economic development of Kenya. Through collaboration, SACCOs can harness the power of technology to unlock new opportunities for growth and success.


One thought on “SACCOs Collaborating on a Joint ICT Platform: Collaboration for Success”

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