Unleash the potential of SACCOs to serve remittance users in rural areas in Kenya

IFAD is partnering with FSD Kenya under the PRIME Africa initiative to provide evidence of the current and potential role played by SACCOs in the remittance value chain. The expected result will Improve informed public policies and private sector strategies for enhancing the role of savings and credit cooperatives (SACCOs) in delivering remittances to the Kenyan rural population. These actors may involve traditional players such as banks and SACCOs and ground-breaking ones like fintechs.

Budget:

Financed: €105,343
Co-Financed: €37,947

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Duration: 2023 ~ 2024

Project Category Remittances & Digitalisation
Research & Data

Target Groups:

- Remittance market operators including all 361 regulated SACCOs, banks, fintechs, payment aggregators and international money transfer operators (IMTOs)
- Regulators: SASRA and CBK
- Development practitioners and academics

Programme

FFR Strategic Framework

PRIME Africa

Project Goals

Improve informed public policies and private sector strategies for enhancing the role of SACCOs in delivering remittances to the Kenyan rural population.

Implementing Partners

Financial Sector Deepening Trust (FSD) Kenya is an independent trust established in 2005 to support the development of inclusive financial markets aligned with Kenya’s long-term development goals. FSD partners with the Sacco Societies Regulatory Authority (SASRA), the primary regulatory body charged with licensing Deposit Taking Saccos and authorizing specified Non-Deposit-Taking Saccos in Kenya.

Geographic Target

Kenya

Outcomes

This study conducted an online survey, to which 140 SACCOs responded out of 359 (39% of the total regulated SACCOs). 22% declared activity in the remittance value chain through partnerships with Banks and other providers. Among those not active in the remittance market, 65% responded to be interested in international remittances. Almost a third of these SACCOs have ongoing engagement with potential partners.