NAIROBI, Kenya, Sept 6 – A two-year program led by the International Fund for Agricultural Development (IFAD) has concluded in Kenya, showing how rural savings and credit cooperatives (SACCOs) can expand affordable remittance services and financial inclusion for families outside major urban centers.
The initiative, called the Affordable Remittances and Enhanced Financial Inclusion for Rural Families in Kenya Project, ran from 2023 to 2025 and was delivered through IFAD’s Financing Facility for Remittances (FFR).
It partnered with Credit Bank PLC, RIA Money Transfer, and Interswitch East Africa to lower remittance costs and expand financial access through rural SACCOs.
According to IFAD, more than 112,000 people received financial literacy training during the project, covering budgeting, savings, and investment skills tailored to remittance users.
Over 1,800 remittance receivers opened accounts for the first time, exceeding the original target of 1,500. Women accounted for 44 percent of participants, underscoring their central role in managing household remittances.
The project also integrated SACCOs into the RIA–Credit Bank remittance channel, allowing them to facilitate straight-to-account transfers and community-level cash pickups.
Earlier this year, Skyline SACCO adopted a formal Remittance and Diaspora Policy, shifting from pilot participation to institutional management of remittance services.
Credit Bank PLC Chief Financial Officer Daniel Lesirma, who served as programme patron, said the project tested incentive models for SACCO members and found a clear link to improved savings behavior.
“Monitoring showed that more than 400 members from a single SACCO increased their savings within six months of participating in training sessions,” he noted.
Looking forward, IFAD and its partners are exploring new remittance corridors, including links with Germany, to connect more diaspora communities directly to rural SACCOs in Kenya.
“Remittances remain a lifeline for millions of Kenyans, particularly in rural areas where access to financial services is limited. By bringing SACCOs into the remittance ecosystem, this program has shown how trusted community institutions can bridge the last mile,” said David Berno, who leads remittances and inclusive digital finance at IFAD.
Credit Bank PLC CEO Betty Korir said linking SACCOs with international remittance networks placed global financial flows directly in the hands of rural communities.
While the initial phase of the project has ended, she added, its long-term impact would be seen in how villages and trading centers continue to benefit from strengthened remittance channels.
Korir also highlighted that Credit Bank has developed a recapitalization plan to support small and medium-sized enterprises (SMEs) with better access to remittances, reinforcing the link between diaspora inflows and rural economic growth.
