The overall usage of Savings and Credit Cooperative (SACCO) Societies improved from 9.6 per cent to 11.7 per cent, driven by increased participation from individual households. This growth reflects SACCOs’ ability to offer loans at lower rates during periods of high interest rates, according to the 2024 FinAccess Household Survey report.
Mobile channels, including USSD, apps, pay bill services, POS, and ATMs, have become the most preferred mode of interaction at 70.6 per cent, surpassing traditional methods such as branches and headquarters, which stand at 66.1 per cent.
Notably, rural users displayed a stronger preference for traditional channels, with 75.1 per cent usage compared to 51.7 per cent among urban users, underscoring the divide in access and technology adoption. Additionally, older users (aged 55 and above) showed a significant inclination towards traditional channels, with 80.2 per cent relying on them compared to 41.8 per cent favouring mobile platforms. This highlights a pronounced generational gap in technology adoption.
“Traditionally, SACCO members primarily accessed services at SACCO headquarters, a practice now standing at just 1.1 percent as the sector has embraced the technological revolution. SACCOs have adopted modern service delivery channels such as agency banking, internet platforms, and mobile technologies, significantly transforming member interactions,” states the joint survey by the Central Bank of Kenya, Kenya National Bureau of Statistics, and Financial Sector Deepening Kenya.
Despite the shift to digital platforms, confidence in branch-based services remains strong, especially in rural areas where usage is high at 66.7 per cent compared to 52.0 per cent in urban settings. Conversely, urban members exhibit higher adoption rates of digital payment options such as Paybill services, at 28.5 per cent compared to 14.3 per cent in rural areas. Female members are particularly drawn to Paybill services due to their simplicity and accessibility.
Mobile platforms like apps and USSD have also gained traction, with urban users leading at 56.8 per cent compared to 44.1 per cent in rural areas. However, gender differences persist, with males accounting for 51.6 per cent of mobile usage versus 47.8 per cent among females, likely due to the perceived complexity of digital technologies.
“These insights highlight the evolving landscape of SACCO service delivery, emphasizing the importance of addressing barriers to technology adoption, particularly in rural areas and among female users. Tailored training and simplified user interfaces could enhance inclusivity and accelerate the shift toward digital channels,” the report notes.
Challenges remain, with 51.7 per cent of respondents citing voluntary withdrawal and 46.2 per cent citing an inability to maintain accounts as the primary reasons for leaving SACCOs. Interestingly, urban respondents were more likely to withdraw voluntarily at 51.1 per cent, compared to 47.4 per cent in rural areas.
The report underscores the need for SACCOs to continue adapting to evolving consumer preferences while addressing barriers to adoption, ensuring inclusivity across demographics and geographies.
