The African Confederation of Co-operative Savings and Credit Associations (ACCOSCA) and Visa, a global leader in digital payments, have joined forces to introduce the Financial Inclusion in Kenya and Tanzania (FIKT) project, in an effort to enhance access to formal financial services among underserved communities and small businesses in the two countries.

This initiative aims to utilize the cooperative and Saccos movement alongside the Visa network to reach millions of unbanked and underbanked individuals across both countries.

The FIKT project will facilitate the development and delivery of innovative and cost-effective financial products and services tailored to the needs and preferences of the target demographics.

It will also strengthen the capacity and sustainability of participating cooperative societies and their apex organizations, while fostering a supportive policy and regulatory environment for financial inclusion.

Additionally, the project will conduct awareness campaigns and financial literacy programs to stimulate demand for and uptake of formal financial services among potential and existing customers.

During the official launch of the project at Radisson Blu Hotel in Nairobi, Cabinet Secretary in the Ministry of Cooperatives and Micro, Small, and Medium Enterprises Development, Simon Chelugui commended ACCOSCA and Visa for their collaboration in creating an inclusive environment that empowers men, women, and youth in Kenya and Tanzania to overcome financial obstacles and achieve economic prosperity.

He hailed it as a true embodiment of cooperative principles and philosophy, emphasizing its alignment with the government’s Transformation Agenda.

On his part, George Ombado, Executive Director of ACCOSCA, emphasized the partnership’s commitment to promoting inclusive, equitable, and sustainable growth for citizens in both countries, particularly through financial education and digital financial solutions.

Country Manager of Visa Kenya, Eva Ngigi-Sarwari, stressed the potential of a combination of financial education and digital payments to drive rapid financial inclusion and economic growth for MSMEs in Kenya and Tanzania.

She highlighted the importance of targeted training programs, especially for women, and partnerships with women-led organizations and community groups to enhance outreach and accessibility to digital financial services.

The FIKT project is expected to significantly impact the socio-economic well-being of beneficiaries and contribute to the achievement of Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

It will also align with the national development plans and strategies of Kenya and Tanzania, such as Vision 2030 and the Big Four Agenda in Kenya, and Vision 2025 and the Five-Year Development Plan in Tanzania.

The launch event brought together representatives from ACCOSCA, Visa, the cooperative sector, government, private sector, civil society, media, and other stakeholders, who underscored the significance and relevance of the FIKT project and expressed their commitment to its successful implementation and scalability.