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Covid pushes more Saccos to go digital

BUSINESS
By Gardy Chacha | August 2nd 2021

Amb Simon Nabukhwesi, the principal secretary at the state department of university education and research in ministry of education, was the chief guest at the fifth annual conference at Cooperative University.[Courtesy]

The Covid-19 pandemic forced Saccos to go digital in new survival manoeuvres.

According to a study whose findings were released recently at Cooperative University of Kenya (CUK), about 52.5 per cent of cooperatives captured in the survey moved their operations to digital or online platforms. The team of researchers, led by Prof Isaac Nyamongo, Prof Kennedy Waweru and Dr Lucy Kigagane of CUK, found that Covid also impacted heavily on the performance of Sacco operations in the country.

Over 61 per cent of the surveyed organisations reported slowed operations while 65.5 per cent reported a reduction in service delivery.

Due to job losses and loss of income, as well as reduced economic activity, 98.9 per cent of Sacco members either decreased or stopped contributions altogether. “The pandemic created a crisis that was so sudden - causing widespread disruption,” said Prof Nyamongo, CUK Deputy Vice-Chancellor in charge of Cooperative Development, Research and Innovation.

“Economic effects of Covid-19 have been reflected in the dramatic increase in unemployment and in extreme poverty which has risen for the first time in 22 years.” The event was attended by University Education Principal Secretary Simon Nabukhwesi.

The team focussed their study on Saccos in the aviation, horticulture, and hospitality sectors, “as these were disproportionately affected due to cessation of air travel, [Gardy Chacha]

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