Kenya has recently issued a strong appeal to East African governments to significantly increase investment in cybersecurity, aiming to safeguard Savings and Credit Cooperatives (SACCOs) from a rising wave of cyber threats. This call was highlighted during a forum in Nairobi, where Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), Wycliffe Oparanya, underscored the critical need for enhanced cybersecurity measures. Represented by Principal Secretary Susan Mang’eli, Oparanya’s speech emphasized the necessity of implementing comprehensive national cybersecurity strategies and fostering collaboration with both local and international stakeholders.
The forum focused specifically on SACCOs, which are essential to the financial ecosystem in East Africa. Mang’eli articulated the need for increased awareness and capacity-building initiatives, as well as the development of early warning systems to detect and mitigate cyber threats. The creation of tailored cybersecurity policies, laws, and regulations for SACCOs is deemed crucial, given their heavy reliance on digital platforms and their susceptibility to cyberattacks.
SACCOs play a significant role in the region’s financial landscape, offering services to individuals who might not have access to traditional banking. They are instrumental in providing credit to low-income earners, small-business owners, and rural communities without requiring collateral. In Kenya, SACCOs contribute approximately 30 percent to national housing savings and 40 percent to the country’s Gross Domestic Product (GDP). Similarly, in Tanzania, cooperatives including SACCOs contribute around 40 percent to GDP and are vital for employment opportunities, particularly for young individuals in rural areas.
The urgency for enhanced cybersecurity investment is part of a broader regional push, reflecting the accelerating digital transformation across East Africa. Kenya advocates for the establishment of a public key infrastructure and intensified research and development in cybersecurity to specifically bolster SACCOs’ protection and operational resilience. Strengthening cybersecurity measures is essential for ensuring that SACCOs continue to provide crucial financial services, thereby supporting economic development and stability throughout the region.
Reference:
