Cooperatives Urged To Pool Resources For Shared Technology Solutions To Drive Economic Growth

In light of the challenges posed by the high costs of technology, Wycliffe Oparanya, Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), has urged cooperatives to come together and invest in shared ICT platforms. Speaking at the 3rd Annual Cooperative Movement Stakeholders Forum in Sawela Naivasha, Oparanya highlighted the importance of leveraging the four-tier cooperative structure to mitigate these technological challenges and drive growth.

Addressing the Challenges of Technological Costs

Oparanya underscored the significant financial burden that acquiring and maintaining technology solutions can place on cooperatives. He emphasized that, through pooling resources, cooperatives can invest in shared ICT platforms that would reduce costs related to software, hardware, and data management. This shared approach, he argued, would also improve cybersecurity, service delivery, and access to global payment systems, thereby promoting financial inclusion.

The Role of CAK in Facilitating Shared Services

The Cooperative Alliance of Kenya (CAK) has a pivotal role in ensuring that cooperatives are able to adopt and integrate technological advancements effectively. Oparanya commended CAKs leadership and efforts in facilitating the adoption of shared technology platforms, noting that this will help cooperatives remain resilient and continue their role as drivers of economic development, empowerment, and community transformation.

CAK plays a crucial role in facilitating these shared services and ensuring the movement adapts to technological advancements Oparanya stated, urging cooperative leaders to stay committed to these initiatives.

Harmonizing Training Programs for Better Resource Allocation

CAK Chairman Mcclound Malonza further emphasized the importance of harmonizing training programs and forums within the cooperative sector. By aligning these events, Malonza argued, cooperatives can avoid scheduling conflicts and maximize limited budgets. This will allow cooperative leaders and employees to attend the most relevant forums and ensure that resources are allocated more effectively.

Aligning training programs will help cooperatives make better use of their resources and enhance the development of the movement Malonza explained.

CoopTec: A Step Toward Digital Transformation

A key initiative in the push for technological advancement within cooperatives is the CoopTec Shared Services Cooperative, which aims to provide a shared platform for cooperatives to modernize operations. CoopTec will offer cooperatives an opportunity to streamline services, leverage technology for better service delivery, and ensure they remain competitive in an increasingly digital world.

Malonza encouraged cooperative leaders to fully support the CoopTec initiative, highlighting its potential to transform operations within SACCOs and enhance member services through the CoopTech SuperApp a comprehensive digital platform designed for SACCOs.

Ensuring Security and Fraud Prevention in Cooperative Banking

The rise in fraud within the cooperative sector has driven the need for a robust shared technology platform. Daniel Marube, CEO of CAK, emphasized that the shared platform would provide a secure and reliable solution for cooperatives, particularly in terms of protecting depositors money and preventing fraud.

The shared platform will guarantee the protection of depositors funds while making services more affordable and reliable Marube stated. He explained that this technology will allow cooperatives to access flexible transaction systems that may have been out of reach due to budget constraints, while improving the overall security of their operations.

The Future of Cooperatives in the Digital Age

As cooperatives continue to adapt to the digital era, the emphasis on shared ICT platforms, like CoopTec, is seen as a critical step toward modernizing the sector. These platforms not only reduce costs and improve service delivery but also contribute to financial inclusion, offering cooperatives a competitive edge in an increasingly digital and global economy.

By embracing technology, cooperatives can ensure their continued success and strengthen their role in empowering communities, driving economic growth, and fostering financial inclusion.