At the 5th Leadership Conference of the Kenya Employers Teachers Sacco Association (KETSA), Sidian Bank CEO Chege Thumbi delivered a forward-looking address that challenged Savings and Credit Cooperative Organizations (Saccos) to shift their focus from mere investment in technology to meaningful innovation that transforms members’ lives.
From Investment to Innovation.
Thumbi observed that while the Sacco sector has already made significant investments in digital systems, core banking platforms and automation, the next phase demands more than infrastructure. “The conversation is no longer about technology for its own sake,” he emphasized. “It is about innovation and creativity.”
He urged Sacco leaders to interrogate whether their products, processes and delivery channels resonate with Generation Z—the cohort now entering the workforce. If Saccos fail to align their offerings with the expectations of younger members who value speed, convenience, and digital-first experiences, they risk long-term irrelevance.
Equally important, he noted, is the sustainability of Sacco business models. Institutions must ensure efficiency in mobilizing deposits and managing loan portfolios in an increasingly competitive financial ecosystem.
Proactive Regulation and Strategic Partnerships.
Thumbi commended the Sacco leadership for proactively engaging the Sacco Societies Regulatory Authority (SASRA). Seeking regulation early, he said, positions the industry to address emerging challenges that go beyond traditional savings and lending, including technology investments and diversified financial products.
Regulation, in his view, should not be seen as a constraint but as an enabler. It allows Saccos to collaborate with other regulated institutions to offer inclusive, value-added services while safeguarding members’ funds.
Global Benchmarking: Lessons from Abroad.
Challenging KETSA officials and CEOs to broaden their horizons, Thumbi called for structured exposure trips to successful cooperative movements in countries such as Canada and the Philippines.
He highlighted a striking example from the Philippines: a cooperative serving more than five million motorcycle taxi riders. The Sacco’s model is built on daily micro-contributions—equivalent to about KSh10—which collectively unlock a wide range of services. These include savings and credit facilities, social and health insurance, life cover, and even vehicle maintenance and spare parts through partnerships with garages.
The result is one of the fastest-growing cooperatives in its market. Its strength lies in offering value-added services that go far beyond basic banking, making everyday life more convenient and secure for members.
The Vision for Kenyan Saccos.
For Kenyan Saccos, Thumbi argued, the path forward is clear: move decisively toward value-added products that enhance member convenience and deepen loyalty. By embedding insurance, investment solutions, and lifestyle services within their ecosystems, Saccos can become true “one-stop shops” for financial and social empowerment. Ultimately, he said, innovation within the cooperative movement is not just about competitiveness. It is about financial inclusion, economic empowerment and driving national prosperity.
