Kenya is poised to host the 24th annual Savings and Credit Cooperatives (SACCA) conference, a prestigious event that will bring together key stakeholders from around the world to discuss the future of savings and credit cooperatives (Saccos). This conference, set to kick off in a week’s time, holds immense significance for Kenya as it seeks to adopt global best practices for the sustainability of its cooperative sector. It will also address a wide range of socio-economic issues, from financial inclusion and poverty alleviation to tackling unemployment and climate change, aligning with key United Nations Sustainable Development Goals (SDGs).
The Vision Behind the SACCA Conference
According to Wycliffe Oparanya, Kenya’s Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises, the 24th SACCA conference will serve as a critical platform for cooperative leaders from across Africa and the globe to engage in discussions about the most pressing challenges and opportunities facing the sector. The event is expected to focus on how Saccos and other cooperatives can drive socio-economic transformation by aligning their operations with broader development agendas such as the UN SDGs and Kenya’s Bottom-up Economic Transformation Agenda (BETA).
“This involvement underscores the government’s commitment to advancing the cooperative movement in Kenya, Africa, and globally. The event brings together stakeholders from across Africa and beyond to discuss emerging business trends, challenges, opportunities, and strategize on cooperative growth and development,” Oparanya said during the announcement.
The conference aims to be more than just a forum for conversation; it will also provide an opportunity for participants to share best practices, network with global leaders in the credit union space, and explore ways to make Saccos more resilient and sustainable in an increasingly uncertain world.
Promoting Sustainable Development Goals
A key focus of the conference will be the role of Saccos in addressing critical United Nations Sustainable Development Goals (SDGs). In particular, the conference will explore how Saccos can be leveraged to combat poverty, reduce inequality, provide decent employment opportunities, and address environmental issues such as climate change.
The SDGs, a set of 17 global goals designed to achieve a better and more sustainable future for all by 2030, represent a roadmap for global development that requires a concerted effort from all sectors of society, including cooperatives. Through their focus on financial inclusion and empowerment of marginalized communities, Saccos are uniquely positioned to make a significant contribution to achieving these goals. The SACCA conference will highlight strategies for integrating the SDGs into the operations of cooperatives, ensuring that their work directly contributes to poverty alleviation, improved livelihoods, and environmental sustainability.
Financial Inclusion and Socio-Economic Transformation
One of the most critical roles Saccos play in the economy is promoting financial inclusion. In Kenya, as in many other African nations, a large segment of the population lacks access to formal financial services. Saccos have traditionally filled this gap by offering affordable and accessible credit and savings solutions to low-income individuals, small-scale farmers, and informal sector workers.
The theme of the conference, “Promoting Sustainable Socio-economic Transformation through Cooperatives,” underscores the importance of using cooperative structures to empower communities economically, particularly at the grassroots level. By providing essential financial services to underserved populations, Saccos enable individuals to improve their livelihoods, start businesses, and invest in education and healthcare, all of which contribute to sustainable economic growth.
George Ombado, Executive Director of the Africa Confederation of Cooperative Savings and Credit Associations (ACCOSCA), emphasized the importance of this mission: “Our intention as a movement is to see that we use the Sacco industry to empower our people.”
Kenya’s Leadership in the Cooperative Movement
Kenya has long been recognized as a leader in the cooperative movement in Africa, with a well-established Sacco sector that has contributed significantly to the country’s economic development. Kenya’s Saccos have a reputation for being among the most successful and innovative in Africa, providing a wide range of financial services that support the livelihoods of millions of Kenyans.
The upcoming SACCA conference will be an opportunity for Kenya to showcase its cooperative model to a global audience. With over 2000 participants from 40 countries expected to attend, including 12 ministers from Africa and 15 global regulators, the event is set to be the most significant gathering of financial cooperatives in Africa. It will provide a platform for Kenya to share its experiences and best practices in cooperative management, governance, and innovation, while also learning from the successes of other nations.
George Mategwa, Chairman of Kenya Police Sacco DT, highlighted the importance of this opportunity for Kenya’s cooperative leaders: “This conference is going to provide us with an opportunity to interact and network with the best in the world in terms of leadership in credit unions. I would like cooperative leaders to take this advantage and register for the conference.”
Supporting Kenya’s Bottom-Up Economic Transformation Agenda (BETA)
A central aspect of the SACCA conference will be discussions on how Saccos can support Kenya’s Bottom-up Economic Transformation Agenda (BETA), an initiative aimed at driving economic growth by focusing on empowering ordinary citizens and small businesses at the grassroots level.
One of the ways Saccos can contribute to this agenda is by promoting the formation of workers’ service cooperatives, which can provide sustainable employment for Kenya’s growing youth population. By creating employment opportunities within cooperatives, Kenya can address some of the most pressing socio-economic challenges it faces, such as high unemployment and income inequality.
Oparanya emphasized the importance of this initiative, stating, “We are placing special emphasis on the formation of workers service cooperatives with the aim of creating sustainable employment for our youth.”
Through their role in financial inclusion and economic empowerment, Saccos are well-positioned to drive the kind of inclusive economic growth that BETA seeks to achieve. By focusing on grassroots economic development and empowering small businesses and communities, Saccos can play a critical role in ensuring that Kenya’s economic growth benefits all citizens, not just the elite.
Tackling Emerging Challenges
While the potential for Saccos to drive socio-economic transformation is clear, the sector also faces several challenges that will be addressed during the SACCA conference. One of the most pressing challenges is how Saccos can remain sustainable in the face of a rapidly changing global economic environment.
The rise of digital technologies and fintech innovations is transforming the financial sector, offering new opportunities for Saccos to expand their reach and improve their services. However, it also poses challenges, as Saccos must adapt to a more competitive and technologically advanced financial landscape. The conference will explore strategies for leveraging digital tools to enhance Sacco operations, improve efficiency, and expand access to financial services, particularly in rural areas.
Another critical challenge is ensuring good governance and accountability within Saccos. As member-owned institutions, Saccos must operate transparently and be accountable to their members. Ensuring that cooperative leaders are well-trained and that governance structures are robust will be essential for the continued success of the sector.
Conclusion: A Bright Future for Saccos in Kenya and Beyond
The 24th SACCA conference represents a significant milestone for Kenya’s cooperative sector and for the broader cooperative movement in Africa. By bringing together leaders from across the continent and beyond, the conference will provide a unique opportunity to share knowledge, network, and discuss strategies for ensuring the long-term sustainability of Saccos.
As Kenya prepares to host this important event, there is a sense of optimism about the future of the cooperative movement. With the right strategies and a commitment to innovation and good governance, Saccos have the potential to drive significant socio-economic transformation, not only in Kenya but across Africa. By addressing key challenges such as financial inclusion, poverty, and unemployment, Saccos can contribute to a more equitable and sustainable future for all.
