John Gachora has urged SACCOs to strengthen their cybersecurity efforts following recent cyberattacks on Kenyan financial institutions. Speaking at the NCBA Group’s Sacco Banking Cyber Security Conference held at the Serena Hotel in Nairobi, the NCBA managing director emphasized the importance of protecting SACCOs, given their critical role in the financial ecosystem.
“Given the significant role SACCOs play, it is essential that they fortify their cybersecurity measures as they adopt more digital solutions,” Gachora said.
John Gachora was responding to the Central Bank of Kenya’s Banking Sector Innovation Survey for 2023, which indicated that approximately 91% of Kenyan financial institutions experienced at least one cyberattack in 2022, making cybersecurity the most significant risk area for the financial lenders.
“As SACCOs become more interconnected and innovative, the risk of cyber-attacks will continue to rise. We must anticipate threats and implement measures to stay a step ahead,” he stressed.
Additionally, he encouraged SACCOs to adopt similar cybersecurity frameworks as those used by banks, which include robust protocols, security assurance, fraud management systems, and continuous security awareness programs.
Currently, an estimated 67% of SACCOs in Kenya have embraced mobile banking and digital wallets to serve their members more effectively. However, as they digitize, they become more prone to cyberattacks.
NCBA Group invested close to USD 5 million towards cybersecurity infrastructure in 2023, focusing on cloud migration, data quality management, and server upgrades. Additionally, the lender improved its security measures, implementing security assurance protocols, information security awareness programs, vendor and third-party security controls, data security controls and fraud management systems. On threat response, NCBA established firewalls to detect, prevent, and respond to threats promptly.
“Today, I can confidently say that NCBA can detect most cyberattack activities within seconds. SACCOs can adopt similar approaches to proactively assess their cybersecurity posture, discover vulnerabilities, and fix them before they can be exploited by cybercriminals. Our experience shows that with the right governance, compliance, and partnerships with cybersecurity experts, SACCOs can significantly reduce their vulnerability to cyberattacks.” Mr. John Gachora noted.
Read: NCBA Records Ksh 9.8bn Profits in H1 2024
Kenya’s cooperative movement is ranked first in Africa and seventh globally, controlling over 30% of the country’s household savings and contributing more than 40% of the nation’s GDP. SACCOs also directly impact the livelihoods of millions of Kenyans, with over 14 million members and over 500,000 people employed within the sector.
John Gachora reaffirmed NCBA’s commitment to supporting SACCOs in navigating the complexities of cybersecurity, urging them to leverage insights shared during the NCBA Group’s Sacco Banking Cyber Security Conference. “The future of SACCOs and the entire financial sector lies in our ability to build resilient systems,” he concluded.