Kenyan fintech firm Kwara has acquired IRNET, a software company which is a subsidiary of the Kenya Union of Savings and Credit Cooperatives (KUSCCO LTD) for an undisclosed amount.
With this acquisition, Kwara has also entered into an exclusive digital solutions partnership agreement with KUSCCO to offer its banking software solutions and mobile banking channels to rapidly increase the growth and profitability of SACCOs in Kenya.
This partnership will catapult the growth of SACCOs through deposit mobilization and digital member acquisition while addressing the key challenges currently facing SACCOs which include costly digitization, security concerns and the digital divide between SACCOs and their increasingly young digital savvy membership.
“This development marks a game changer in the management of SACCOs going forward,” said George Ototo, Group Managing Director of KUSCCO.
“The acquisition of IRNET and the KUSCCO-Kwara partnership will deliver to our thousands of SACCO members a tested and proven, secure and efficient cloud-based core banking platform as well as modern mobile banking channels. ‘’
George notes that since its launch in 2019, over 120 SACCOs have embraced the stable and secure Kwara Core Banking software as well as full digital banking channels, including mobile, USSD, agency banking, ATM and international remittance.
‘’We are excited about the synergy and bundling of the Kwara and IRNET teams’ capabilities that will create a long lasting relationship to benefit and grow the entire SACCO sector in Kenya.” he said.
Kwara Co-Founder and CEO Cynthia Wandia said the fintech gas has spent the last four years working closely with KUSCCO to uplift the SACCO sector in Kenya. ‘’Our clients have grown their deposits and loan books twice as fast as they did before switching to Kwara.
We are now grateful for the opportunity to avail those benefits to SACCOs across the entire country.
This partnership through acquisition enables us to place fully digital and secure technology in the hands of all SACCO members in the fastest possible time, backed by the most established SACCO partner in Kenya.” she said.
The entire IRNET team will join forces with Kwara to ensure a seamless transition and to embed the entire KUSCCO regional network and marketing expertise into Kwara for the success of the partnership and growth of the SACCO fraternity.
“IRNET is delighted to bring its Cybersecurity and Project Assurance experience as well as trusted SACCO relationships into Kwara.
This aligns with the goal to accelerate digitization of SACCOs at this opportune time when SACCOs are poised to play a pivotal role in expanding the Kenyan economy through micro, small and medium enterprises.
This evolution will also make our SACCOs more compliant with SASRA digitization and governance requirements.” Patricia Mathiu, CEO of IRNET said.
KUSCCO, Kwara and IRNET will soon launch the partnership at a Nairobi-based event followed by regional launches across the country.
The parties say they intend to rapidly onboard the entire SACCO fraternity onto the Kwara platform in the next six months and look forward to your partnership and support.