Diversify investments to remain relevant, co-operatives told

Co-operative societies have been told to diversify their investment portfolios and ensure they maintain sound corporate governance if they are to stay relevant in the information age.

Industrialisation and Enterprise Development Principal Secretary, Wilson Songa said co-operatives need to ensure greater visibility by using ICT solutions in their marketing strategies to attract a greater number of savers many of whom are below 35.

''Savings and credit co-operative societies (Saccos) play a key role in creating vibrancy and competitiveness in the financial sector, as many Kenyans, who would have been denied access to loans by most banks due to lack of collateral, have access to low-interest loans hence helping them transform their lives,'' he said in Mombasa.

He said as Saccos attempt to pursue their strategic objectives, it is important to note that the sub-sector is operating in a complex and rapidly changing environment thus demanding foresight and constant innovation on the part of those in management positions.

Dr Songa observed that savings and credit societies were facing stiff competition from local banks and asked them to strengthen their model and product offerings to counter such challenges.

"The effective use of technology in the development and delivery of financial products and services is one of the ways in which the sub-sector can position itself for sustained growth," he said.

He added that the sector controls deposits and assets to the tune of more than Sh500 billion and has the capacity to transform Kenya into an industrialised middle income country in the next 15 years as stipulated in the Vision 2030.

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