Commissioner for Cooperatives David Obonyo has raised concern over the threats posed by cyber-related crimes in Sacco operations.
Obonyo lamented that criminal activities that target users through computers and phones have been on the increase in the Saccos.
“This challenge is more prominent in Saccos that are financially struggling and those that are suffering from leadership wrangles,” he said.
The Commissioner said technology-based challenges have led to Sacco systems collapsing and to an extent, members losing their resources.
“Most Saccos operate on old technology platforms which have become vulnerable to emerging threats,” he added.
Obonyo stated that cybercrime and corruption-related risks could be tamed with goodwill and enhanced sound governance by all stakeholders.
Cooperative Alliance of Kenya (CAK) Vice Chairman David Mategwa said cybercrime is a big threat to the growth of Sacco business in the country.
“Most Sacco operations structures have been hacked leading to loss of information and members’ resources. This has been aggravated by lack of knowledge by directors and senior management,” said Mategwa.
He urged Sacco managements to keep tabs on emerging technological trends to stay ahead of the hackers.
By Thuita Jaswant
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