KETSA calls for AI integration into SACCO operations for stronger digital governance

The Kenya Teachers’ Sacco Association (KETSA) has called the integration of Artificial Intelligence, (AI) into Sacco operations to strengthen digital governance and simplifies services.

Speaking during the sixth annual CEO workshop in Mombasa, the forum’s Chair Joyce Ndegwa highlighted the urgency of adapting to technological shifts, strengthening Sacco member services, and innovative collaboration within the Sacco movement.

“We are in the digital era, and it is important for CEOs to understand how to propel our institutions to the next level by embracing governance through technology,” she said.

The Mentor Sacco CEO said that technology and innovation are no longer optional for Saccos but critical tools for growth, sustainability, and competitiveness in the financial sector

According to her, leaders who fail to adapt risk being left behind as members increasingly demand faster, more transparent and more efficient services.

Ndegwa further said that embracing digital platforms will not only improve accountability and decision-making processes but also expand access to financial services among members in rural and underserved areas.

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She challenged Sacco CEOs to invest in capacity building and continuous training to ensure staffs are well equipped to handle emerging technologies such as artificial intelligence, and data analytics, which are transforming the financial landscape globally.

“Sacco CEOs should prioritize staff training to embrace emerging technologies like AI, blockchain, and data analytics that are redefining the financial sector,” she said.

She said that emerging technologies are not just buzzwords but practical tools that can streamline Sacco operations, enhance member experience, and reduce risks associated with manual processes.

According to her, data analytics is equally critical, as it enables institutions to better understand member needs and tailor products that reflect real demand.

“With data-driven decisions, Saccos can remain competitive and ensure they are not just reacting to changes but anticipating them,” she added.

KETSA CEO Ivy Kageni said the association’s commitment to harnessing technology as a driver of growth and improved service delivery in the Sacco movement.

She noted that artificial intelligence is no longer a futuristic concept but a present reality that institutions must embrace.

“You cannot stop something whose time has come, AI is already here, and we must find ways to use it to enhance our services,” Kageni said.

According to her, integrating AI into Sacco operations can transform how members interact with their institutions by simplifying processes such as loan applications, customer inquiries, and fraud detection.

She added that AI-driven systems can also improve efficiency, cut costs, and allow staff to focus on more strategic areas of service delivery, pointing out that technology is not meant to replace human expertise but to complement it.

She urged Sacco leaders to adopt a balanced approach that combines innovation with sound governance practices to ensure members continue receiving reliable and trustworthy services.

“Sacco movement must keep pace with digital transformation trends to remain relevant and competitive. Resistance to change could slow down growth and erodes member confidence.” She said.

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Senior Business Analyst at the Central Bank of Kenya, Maurice Mudhune, noted that the foundation of any successful AI adoption in financial institutions lies in having a robust strategy that integrates data governance, ethical principles, and strong human oversight.

He said that institutions with clearly defined AI policies and strategies are better positioned to harness the technology’s potential while minimizing risks.

According to him, a structured approach ensures that innovation serves both the organization and its members without compromising trust.

Mudhune, however, cautioned against embracing innovation blindly.  “Consumer protection in the face of technological advancements must remain a key focus,” he said, stressing that innovation must always be matched with accountability and responsibility.

He added that as Saccos and other financial institutions integrate AI, they must ensure transparency, fairness, and inclusivity in order to build confidence among members and safeguard the integrity of the financial system.

The four day summit which in 25 CEOs, featured intensive training on transformational leadership and governance in the digital era, while also fostering in-depth dialogue on regulatory compliance, the implications of the Finance Bill 2025, and how Saccos can leverage technology and artificial intelligence to enhance service delivery.

By Mwajabe Omar

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