Nairobi, Sep 9 Kenya on Monday called on East African governments to ramp up investments in national cybersecurity strategies to safeguard savings and credit cooperatives (SACCOs) from escalating cyber threats.
Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Wycliffe Oparanya emphasized the critical role that SACCOs play in the economic stability of many African nations.
"Governments must prioritize the implementation of national cybersecurity frameworks by fostering collaboration with both local and international stakeholders," Oparanya said in a speech read on his behalf by Principal Secretary Susan Mang'eli, Xinhua news agency reported.
Mang'eli, who spoke at a forum on SACCOs banking and cybersecurity in Nairobi, the capital of Kenya, highlighted the need for increased awareness, capacity-building, and the development of early warning systems to detect and respond to cyber incidents.
She stressed the importance of creating cybersecurity policies, laws, and regulations tailored to the unique needs of SACCOs and similar financial institutions, which are particularly vulnerable due to their reliance on digital platforms.
The Kenyan official called for the establishment of public key infrastructure and intense research and development efforts in cybersecurity, aimed specifically at protecting SACCOs.
SACCOs are designed to serve people excluded from traditional banking services, including low-income earners, small-business owners, and rural communities.
These cooperatives offer financial services without requiring assets as collateral, enabling members to access credit using their deposits and the security of guarantors, Mang'eli said.
In Kenya, SACCOs contribute significantly to the economy, accounting for 30 percent of national housing savings and 40 percent of the country's gross domestic product (GDP), according to government statistics.
The situation is similar in Tanzania, where cooperatives, including SACCOs, contribute around 40 percent to the GDP and provide employment to 94.7 percent of school-leavers annually, Mang'eli said, adding that many of these young people, especially in rural areas, depend on cooperative movements for external financing.
--IANS
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor