Kenya has issued a strong call to East African governments to enhance investment in cybersecurity as a critical measure to protect Savings and Credit Cooperatives (SACCOs) from rising cyber threats. On Monday, Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), Wycliffe Oparanya, highlighted the urgency of fortifying cybersecurity measures.
Oparanya’s speech, delivered by Principal Secretary Susan Mang’eli at a forum in Nairobi, stressed the importance of implementing strong national cybersecurity strategies.
“Governments must prioritize the implementation of national cybersecurity frameworks by fostering collaboration with both local and international stakeholders,” Oparanya emphasized, as reported by Xinhua news agency.
Kenya Urges Investment in Cybersecurity
The forum, focused on SACCOs and cybersecurity, was convened to address the growing vulnerabilities faced by these financial institutions. Mang’eli, representing Oparanya, articulated the necessity for enhanced awareness and capacity-building initiatives. She also highlighted the development of early warning systems to detect and mitigate cyber threats effectively.
The creation of tailored cybersecurity policies, laws, and regulations for SACCOs is crucial,” Mang’eli noted. This call to action aims to protect SACCOs, which are particularly susceptible due to their heavy reliance on digital platforms.
SACCOs play a pivotal role in East Africa’s financial landscape, catering to individuals who might not have access to traditional banking services. They provide financial services to low-income earners, small-business owners, and rural communities without requiring collateral. Instead, these cooperatives offer credit based on member deposits and guarantees, thus fostering financial inclusion.
In Kenya, SACCOs are integral to the economy. They account for approximately 30 percent of national housing savings and contribute 40 percent to the country’s Gross Domestic Product (GDP). This economic footprint underscores the importance of protecting these institutions from cyber threats.
Similarly, in Tanzania, cooperatives, including SACCOs, contribute about 40 percent to the GDP and are crucial in providing employment opportunities to school-leavers, particularly in rural areas. Many of these young individuals rely on cooperative movements for financial support.
The Need for Better Cybersecurity Measures in Africa
The necessity for investment in cybersecurity has become increasingly evident. The proliferation of cyberattacks poses a substantial risk to SACCOs, which are often targeted due to their financial assets and digital operations. To address these challenges, Kenya advocates for the establishment of a public key infrastructure and intensive research and development in cybersecurity. These efforts are aimed at specifically enhancing the protection of SACCOs and ensuring their operational resilience.
Kenya’s call for heightened cybersecurity investment is not isolated but part of a broader regional push. As digital transformation accelerates across East Africa, the need for comprehensive cybersecurity frameworks becomes more critical. Governments are urged to collaborate with both local and international experts to develop and implement strategies that can effectively counteract cyber threats.
By strengthening cybersecurity measures, SACCOs can continue to serve their crucial role in providing financial services to underserved populations, thereby supporting economic development and stability across the region.
