Co-operative Bank of Kenya has entered into a major partnership with 619 Savings and Credit Cooperative Societies (Saccos) across the country to improve how members access banking services. The new arrangement will help Sacco members carry out transactions like deposits, withdrawals, and loan applications using Co-op Bank branches instead of only relying on their Sacco offices.
This new step, which the bank announced recently, is aimed at making financial services more available to more people, especially those living in rural areas. It is also expected to reduce the costs of running Saccos and help them focus on their main role of collecting savings and giving loans to members.
The Managing Director of Co-operative Bank of Kenya, Mr. Gideon Muriuki, said the bank is proud of the partnership and what it means for Kenya’s cooperative sector. He explained that this collaboration will make it easier for Saccos to serve their members without spending too much on setting up new offices or banking systems. Instead, they will be able to use the infrastructure already provided by Co-op Bank, which has branches in different parts of the country.
According to Mr. Muriuki, the partnership is part of the bank’s efforts to support Kenya’s cooperative movement, which plays a big role in the country’s economy by promoting savings and helping people access credit, especially those in the informal sector. He said the goal is to support Saccos so that they can continue helping Kenyans, particularly those in rural and underserved communities.
The partnership also fits into the Kenyan government’s larger plan to promote financial inclusion, which means making sure that more people, especially in remote areas, can access safe and reliable financial services. Many rural communities still lack access to modern banking services, and this new move is expected to help close that gap.
By using Co-op Bank’s branches, Sacco members will now be able to carry out basic banking activities more easily. This convenience is likely to attract more people to join Saccos and also help existing members save time and money.
Saccos in Kenya have been facing increased competition from commercial banks and fintech companies offering digital loans and savings platforms. As a result, they have been looking for new ways to improve their services and stay relevant. This partnership with Co-op Bank offers them a strong chance to improve customer experience without heavy spending.
Mr. Muriuki also stated that Co-op Bank remains committed to supporting the cooperative sector with modern financial solutions that are secure, affordable, and easy to use. He added that with this move, Sacco members can now enjoy faster services while still being loyal to their cooperatives.
The partnership is already being seen as a game changer for the Kenyan financial sector, and other countries with strong cooperative movements might consider similar arrangements in the future. For now, Co-op Bank and the 619 Saccos involved are hoping to use this deal to reach more people and support economic growth across Kenya.
