Sidian Bank, KETSA partner to strengthen SACCOs through risk management strategies
From left to right Douglas Mwangi Finance and Strategy Director Sidian Bank, Ivy Kageni- CEO KETSA, Robert Njue – KETSA Chairman, Kennedy Keya – KETSA Vice Chairman, CPA Joyce Ndegwa – Chairlady KETSA CEOs Forum, David Rono – Board Treasurer KETSA
Sidian Bank and the Kenya Teachers’ Sacco Association (KETSA) have joined forces to enhance risk management strategies within SACCOs, ensuring long-term financial stability and sustainability in an evolving economic landscape.
Speaking at the KETSA Leaders’ Summit at Lake Bogoria, Sidian Bank’s Director of Finance and Strategy Douglas Mwangi, emphasized the crucial role of risk management in maintaining customer confidence and sector stability.
“Risk management is at the core of financial intermediation since it enhances the confidence of customers and the stability of the sector,” Mwangi stated.
The three-day summit brought together over 100 SACCO leaders to discuss pressing challenges, including cybersecurity threats, regulatory complexities, and operational inefficiencies, which could undermine the cooperative movement if not addressed effectively.
As part of its commitment to supporting SACCOs, Sidian Bank has implemented key digital payment and collection solutions, improving efficiency and member convenience. These include:
Cheque scanning technology – allowing SACCO members to clear cheques without visiting a bank branch.
Real-time payment solutions, such as PesaLink, enabling faster transactions and enhanced financial services.
Mwangi highlighted that protecting customer funds and ensuring seamless banking operations are critical to the sector’s sustainability.
KETSA Chairman, Mr. Robert Njue, underscored the importance of continuous innovation and collaboration among SACCO stakeholders, particularly as businesses rapidly transition to digital platforms. He identified cyber risks as a major concern, calling for proactive strategies to mitigate financial threats.
“We are entering a new phase that requires consultation, expertise, and technology to keep pace with changes in the financial sector,” Njue noted.
Beyond digital threats, he pointed to mismanagement, greed, and poor leadership decisions as historic factors leading to the collapse of financial institutions.
To address these issues, KETSA is aligning itself with upcoming cooperative law reforms, as the government prepares to introduce a new bill aimed at closing legal loopholes and strengthening governance within SACCOs.
The partnership between Sidian Bank and KETSA signals a growing recognition of the need for sound financial management and regulatory compliance in the SACCO sector. By integrating risk management, digital transformation, and regulatory alignment, SACCOs can enhance resilience, improve customer trust, and ensure long-term growth in Kenya’s cooperative movement.
