Farmers in Kericho County have been urged to join Savings and Credit Cooperative Societies (SACCOs) and embrace digital financial services to improve access to credit and expand their agricultural enterprises.
The call was made during the ICT and Digital Transformation for SACCOs conference held at a hotel in Kericho, where cooperative leaders and stakeholders discussed how technology can improve services and increase financial inclusion among members.
Kericho County Executive Committee Member for Agriculture, Livestock and Fisheries John Cheruiyot said farmers should take advantage of SACCOs and partner with financial institutions to access affordable financing and strengthen their farming activities.
Cheruiyot said he had confidence in SACCO-bank partnerships, drawing from his experience as a Kenya Commercial Bank (KCB) member since 1993. He encouraged farmers to use such collaborations to secure financial support for agricultural investments.
Kenya Highlands SACCO Chief Executive Officer Alice Kosgei said the collaboration between SACCOs and financial institutions would make it easier for farmers to obtain financing for farming ventures.
Ms Kosgei said stronger cooperation within the cooperative sector would provide farmers with better opportunities to expand their enterprises and improve productivity.
The push for increased financing comes as farmers continue to face challenges in acquiring machinery and other agricultural inputs. Through the partnership, eligible farmers can access financing of up to 95 per cent for New Holland tractors and Nardi agricultural equipment, with repayment periods of up to 60 months.
The financing package also includes a 60-day repayment holiday and one year of free insurance, giving farmers an opportunity to acquire equipment while managing their cash flows.
The conference also focused on digital transformation and how technology can change the way SACCO members interact with their institutions.
Participants said members should be able to access savings, loans, repayments and other services through mobile phones, with transactions and alerts processed in near real time.
Imarisha SACCO Business Development Manager Tevin Maina said regulated SACCOs have about 7.4 million members and assets valued at approximately Sh1.808 trillion, demonstrating the sector’s significant role in the country’s financial system.
Maina said widespread mobile-phone use presented an opportunity for SACCOs to expand digital services and reach more members, including those in remote areas.
However, speakers noted that SACCOs faced challenges in the transition to digital platforms. Outdated systems and disconnected applications were identified as barriers, with stakeholders calling for greater integration, automation and stronger cybersecurity measures.
Stima SACCO shared its experience in adopting shared services by bringing mobile transactions, cheque clearing and agency banking functions under one department.
The SACCO’s asset base grew from about Sh32 billion in 2018 to Sh75 billion by 2024, while its membership surpassed 260,000.
Imarisha SACCO has about 280,000 members of whom, 10 per cent were in the diaspora ;across the United States, Europe, the United Kingdom, the United Arab Emirates and Australia.
The SACCO called for improved remittance systems, stronger Anti-Money Laundering (AML) and Know Your Customer (KYC) support, better data protection and faster cheque-clearing services to improve services for diaspora members.
As SACCOs move towards a more connected and digital future, participants said improved technology would make financial services more accessible, efficient and convenient.
For farmers, the digital shift and stronger SACCO partnerships could provide easier access to credit, agricultural equipment and financial services, helping them expand their enterprises and build more sustainable livelihoods.
By Fidel Ochieng and Humphrey Edwin
