Sidian Bank, KETSA Move To Tackle Financial Risks For Sustainable Growth
Mr. Douglas Mwangi, Sidian Bank’s Director of Finance and Strategy
By Suleiman Mbatiah
Effective risk management strategies are essential for ensuring the stability and growth of the cooperative movement in today’s fast-changing financial landscape, industry experts have emphasized.
From volatile markets and cybersecurity threats to regulatory complexities and operational inefficiencies, these challenges could jeopardize the core foundations of the cooperative model if not addressed through robust risk management.
Mr. Douglas Mwangi, Sidian Bank’s Director of Finance and Strategy, noted that cooperatives—built on principles of member ownership, democratic control, and shared benefits—are grappling with unprecedented obstacles.
“Risk management is at the core of financial intermediation since it enhances the confidence of customers and stability of the sector,” he reiterated.
He made these remarks during the Kenya Teachers’ Sacco Association (KETSA) leaders’ summit at Lake Bogoria in Baringo, a three-day event that convened over 100 SACCO leaders to explore vital risk management strategies for strengthening the cooperative movement.
Mr Mwangi stressed the importance of protecting customers’ funds and boosting their trust in Sidian Bank’s operations and services, which he said is critical to ensuring the industry’s sustainability and ongoing growth.
Sidian Bank has collaborated with SACCOs to enhance digital payments and collections, providing and installing cheque scanners at their premises. This allows members to clear cheques without visiting a bank branch.
Additionally, he stated, the bank has equipped SACCOs with real-time payment solutions, such as PesaLink, improving convenience and the speed of member services.
“Risk management for me is at the core of financial intermediation, because then it enhances the confidence of customers in what we do and also the stability of the sector,” he stated.
KETSA Chairman Mr. Robert Njue underscored the importance of continuous innovation and collaboration among SACCO stakeholders amid ongoing economic shifts that are creating significant challenges.
He identified cyber risks and the rapid transition of business to digital platforms as some of the sector’s most pressing issues.
“We are getting into a new thing that requires a lot of consultation and a lot of bringing together expertise, technology, so that they can also keep us abreast with the changes in that space,” he noted.
Njue pointed out that mismanagement, greed, and poor decision-making by leaders have historically led to the downfall of institutions. He expressed confidence that the risk management strategies discussed at the summit would bolster SACCOs’ long-term sustainability.
He also revealed that KETSA is aligning itself with forthcoming changes in cooperative law, as the government prepares to introduce a new bill aimed at closing legal and mismanagement gaps within the sector.
Similar Posts by The Mt Kenya Times:
- Pan-African leaders call for borderless Africa and urgent continental unity
- Pan-African leader calls for unity, youth empowerment and economic transformation
- Wantam or Tutam: The then what next?
- Gachagua escalates war with Ruto, questions his security
- Uhuru draws the line
About the Author
