Adoption and utilization of ICTs by savings and Credit Cooperative Societies in Kenya: A case of Tharaka Nithi Teachers Sacco Society Ltd

Abstract

Cooperative societies have empowered many communities in Kenya and made their livelihood more sustainable than would have imagined. The development of cooperative societies would be more enhanced if Information and Communication technologies (ICTs) are optimally used for improved service delivery. The primary purpose of this study was to investigate the nature, types and extent to which Tharaka Nithi Teachers SACCO had adopted the use of ICT for its activities. The study was guided by the following objectives: Mapping and auditing ICTs in Tharaka Nithi Teachers SACCO; to find out the extent to which ICTs were used in enhancing service provision and to identify the challenges that the SACCO was experiencing in the adoption and utilization of ICTs. Specifically the study was informed by Rogers‟s theory of diffusion of innovations. The literature was reviewed in the aspects of applications of ICT in microfinance institutions, their benefits and the challenges experienced. The study used both qualitative and quantitative methods. The sample was drawn from the staff and members of Tharaka Nithi Teachers SACCO. Simple random sampling technique was used to get a sample of SACCO members while purposive sampling was used to identify SACCO staff and officials. Officials from the Ministry of Cooperative Development and Marketing and the Kenya Union of Savings and Credit Societies were also involved as key informants. Data was analyzed using both qualitative and quantitative techniques. The study showed overwhelming evidence that ICT is of immense benefits to the SACCO. It was further found that ICTs were not sufficiently utilized by the SACCO and that the Ministry of Cooperatives Development and Marketing does not have structures to assist rural SACCOs in the adoption and utilization of ICT. It was recommended that the SACCO should acquire open source software that allows customization and networking. The government through the Ministry of Cooperative and Marketing should invest in ICT infrastructure and KUSCCO should extend its advocacy in encouraging SACCOs to adopt ICTs.