Africa Digest News

Savings and Credit Cooperative Societies (SACCOs) are in a favourable position to play a key role in the swiftly changing financial landscape of Kenya.

With over 22,000 SACCOs serving millions of Kenyans, these member-owned institutions are a cornerstone of financial inclusion, offering affordable credit and savings options.

Now, a groundbreaking partnership with EFT Corporation, an African fintech leader processing over $33 billion in transactions annually, is set to elevate SACCOs into the digital payments arena.

Announced at the EFT Connect: Kenya event in Nairobi in May 2025, this collaboration aims to co-create a shared digital payments platform tailored for SACCOs, promising to redefine how they operate and serve their members.

The Power of SACCOs in Kenya’s Financial Ecosystem

SACCOs are a lifeline for millions of Kenyans, particularly in rural areas and among underserved communities.

With an asset base exceeding Ksh. 1 trillion and mobilising over Ksh. 732 billion in savings, SACCOs account for roughly 35% of Kenya’s national savings.

However, despite their critical role, many SACCOs face challenges like fragmented interoperability, reliance on third-party providers, and limited access to Kenya’s National Payment System (NPS).

These hurdles have restricted their ability to issue cards, process transactions directly, or scale digital services independently.

READ ALSO:SACCO Digital Transformation: Are Kenyan SACCOs Ready for Fintech?

Enter EFT Corporation, a fintech powerhouse with a proven track record in building robust payment infrastructures across Africa, including Zimswitch and Eswitch.

This partnership, forged with some of Kenya’s leading SACCOs, is designed to address these challenges head-on by creating a shared digital payments platform that empowers SACCOs to take control of their digital future.

A Game-Changing Partnership for Digital Transformation

The EFT Corporation-SACCO collaboration is more than just a tech upgrade; it’s a movement to give SACCOs autonomy and scalability. Here’s what makes this initiative a potential game-changer:

• Real-Time NPS Connectivity: The platform will enable SACCOs to connect seamlessly to Kenya’s National Payment System, allowing them to process transactions in real time without relying on bank intermediaries.
• Shared Agency Banking: By pooling resources, SACCOs can offer agency banking services, expanding their reach and accessibility for members across urban and rural areas.
• Efficient Clearing Tools: The platform will streamline manual processes like cheque clearing and bank-led reconciliation, reducing costs and operational complexity.
• Reduced Third-Party Reliance: By building a SACCO-led infrastructure, the platform minimises dependence on external providers, enhancing efficiency and cost-effectiveness.

This initiative is unique because it’s driven by SACCOs for SACCOs. A working group of 20-25 SACCOs will collaborate with EFT Corporation to design and implement the platform, ensuring it aligns with their specific needs and regulatory requirements.

Pilot programmes and co-design sessions are slated to begin in Q3 2025, marking the first step toward a scalable, inclusive digital payment ecosystem.

Why This Matters for Kenya’s Financial Future

Kenya is a global leader in digital payments, thanks to innovations like M-Pesa. However, SACCOs have lagged behind in fully integrating into this digital ecosystem due to regulatory and technological barriers.

Only 178 of Kenya’s SACCOs are licensed as deposit-taking institutions, and many lack the infrastructure to operate as Payment Service Providers (PSPs).

This partnership could change that by equipping SACCOs with the tools to compete with banks and digital lenders.

Catherine Korsten, Chief Commercial Officer at EFT Corporation, sums it up perfectly: “This initiative is about enabling SACCOs to take ownership of their digital future.”

By leveraging EFT’s expertise in multi-stakeholder payment systems, SACCOs can unlock new opportunities for growth, efficiency, and member satisfaction.

This move also aligns with Kenya’s Vision 2030, which emphasises financial inclusion and economic empowerment through cooperative models.

What’s Next for SACCOs and Digital Payments?

The journey begins with a pilot programme in Q3 2025, where SACCOs will test the platform’s features, including wallet parameters, onboarding processes, and user flows tailored to their needs.

This collaborative approach ensures the platform is practical, user-friendly, and compliant with regulations set by the Sacco Societies Regulatory Authority (SASRA).

READ ALSO:Top 10 SACCOs in Kenya and What Makes Them Stand Out

For SACCOs looking to stay competitive in a fast-evolving financial landscape, this is a golden opportunity.

Those interested in joining the working group or participating in the pilot can contact EFT Corporation directly to get involved.

As SACCOs embrace this digital transformation, they’re not just adapting to change; they’re shaping the future of financial inclusion in Kenya.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.