The Sacco Societies Regulatory Authority (SASRA) has urged the Savings and Credit Cooperative Organizations (SACCOs) to strengthen oversight by reinforcing compliance, risk management, and regulatory reporting standards in the rapidly evolving digital financial services space.
Speaking during a virtual sensitization forum bringing together more than 600 participants from regulated SACCOs, Acting Chief Executive Officer (CEO) David Sandagi said the growing adoption of mobile banking, USSD platforms, mobile applications, agency banking services, PesaLink, digital credit products, and other technology-driven channels must be matched with strong governance structures and safeguards to protect members’ funds.
He noted that while digital transformation has become essential for the SACCO sector, innovation must be accompanied by accountability, sound internal controls, and robust oversight mechanisms.
“For SACCO members, the digital platforms used to access savings, loans, deposits, and other services must remain secure, properly approved, closely monitored, and supported by effective risk management systems,” Sandagi said.
He cautioned SACCOs against granting unrestricted access to their systems by third-party service providers, emphasizing that such access should be treated as a controlled privilege rather than an automatic entitlement.
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Sandagi further urged SACCOs to strengthen vendor management practices, enhance cybersecurity measures, closely monitor system access, and ensure all digital products and delivery channels receive the necessary regulatory approvals before being rolled out to members.
The meeting also underscored the importance of accurate and timely quarterly reporting on approved digital channels, including SACCO agency, bank agency, and PesaLink services. According to SASRA, such reporting is critical in monitoring operational risks, enhancing transparency, and enabling early detection of technology-related threats within the sector.
Additionally, the Authority reminded regulated SACCOs that digital financial services must be supported by clear contractual arrangements, comprehensive audit trails, business continuity plans, dedicated settlement accounts, daily reconciliations, and prompt reporting of cybersecurity incidents.
As SACCOs continue to embrace digital innovation, SASRA reaffirmed its commitment to supporting safe, compliant, and member-centred technological advancement aimed at safeguarding members’ funds and strengthening public confidence in the SACCO sector.
By Juma Ndigo
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