The shift towards investment diversification also presents opportunities for asset managers seeking institutional clients beyond traditional corporate Financial services firms are now seeking to strengthen their engagement with SACCOs through a joint initiative targeting cooperative leaders and decision-makers /AI GENERATED Kenya's fund managers are seeking deeper partnerships with Savings and Credit Cooperative Organisations (Saccos) as they look to tap into the sector's growing pool of member savings and expand the market for investment and wealth management products.
The growing interest comes as Saccos face mounting competition from commercial banks, fintech companies and mobile lenders, forcing them to rethink traditional savings and lending models and explore alternative sources of growth. Financial services firms are now seeking to strengthen their engagement with Saccos through a joint initiative targeting cooperative leaders and decision-makers.
"Saccos have an important role to play in helping members move beyond saving towards building long-term financial security and wealth. This requires a broader understanding of financial growth, including the importance of investment diversification, sound financial planning and making capital work harder," said Apollo Asset Management chief executive Paul Mwai.
In an effort to tap on this opportunity the firm is planning a joint leadership masterclass targeting Sacco chief executives, board members and senior decision-makers. The November 19 event in Nairobi will focus on investment diversification, financial planning, risk management, governance and digital transformation, reflecting the expanding commercial opportunities in the cooperative sector.
For asset managers, Saccos represent a potentially significant institutional investment market, given their role in mobilising members' savings and managing funds that can be channelled into different investment instruments. Mwai said Saccos needed to move beyond traditional savings and lending activities and adopt broader investment strategies to generate sustainable returns for members.
“Saccos have opportunities to strengthen their investment strategies and explore new avenues for generating returns while protecting members' interests,” said Mwai. The insurance industry is also looking to deepen its role in the sector through financial protection, pension planning and other long-term savings products.