On Monday, Kenya urged East African governments to significantly increase investments in national cybersecurity strategies to protect savings and credit cooperatives (SACCOs) from rising cyber threats. The call highlights the critical need for robust cybersecurity measures to safeguard these essential financial institutions.
Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), Wycliffe Oparanya, emphasized the pivotal role SACCOs play in the economic stability of many African countries. His speech, delivered by Principal Secretary Susan Mang’eli, underscored the importance of implementing national cybersecurity frameworks through collaboration with both local and international stakeholders.
At a forum in Nairobi focusing on SACCOs banking and cybersecurity, Mang’eli stressed the necessity of increasing awareness, capacity-building, and developing early warning systems to effectively detect and respond to cyber incidents. She highlighted the need for tailored cybersecurity policies, laws, and regulations to address the unique vulnerabilities of SACCOs.
Mang’eli also called for the establishment of public key infrastructure and enhanced research and development efforts in cybersecurity, specifically aimed at protecting SACCOs. These cooperatives, which serve those excluded from traditional banking, are vital to many communities, offering financial services without requiring collateral and enabling access to credit through deposits and guarantors.
In Kenya, SACCOs contribute significantly to the economy, accounting for 30 percent of national housing savings and 40 percent of the country’s GDP. The impact is similar in Tanzania, where cooperatives, including SACCOs, contribute about 40 percent to the GDP and provide employment opportunities for a substantial percentage of school-leavers annually.
This initiative reflects the broader recognition of SACCOs’ role in economic development and the urgent need to protect them from cyber threats. For more insights into this important issue and its impact on the region, follow our page.
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