Hundreds of families in rural Kenya have benefited from a two-year initiative led by the International Fund for Agricultural Development (IFAD), through its Financing Facility for Remittances (FFR) to enhance financial inclusion by tapping sacco networks to facilitate access to remittances.

Under the IFAD's Affordable Remittances and Enhanced Financial Inclusion for Rural Families in Kenya Project, thousands of rural households have been capacitated to better access affordable remittance services and financial training.

Launched in 2023, the program was implemented in partnership with Credit Bank PLC, RIA Money Transfer, and Interswitch East Africa, aiming at cutting the cost of remittances while strengthening financial inclusion through SACCOs in rural zones.

Over the project period, over 112,000 individuals received financial literacy training, including budgeting, savings, and investment skills tailored to remittance users. 

As a result, over 1,800 remittance receivers opened accounts for the first time, surpassing the original target of 1,500 with women representing 44 percent of participants, reflecting the critical role they play in managing household remittances.

Under the initiative, rural saccos were onboarded into the RIA–Credit Bank channel, enabling them to provide straight-to-account transfers and cash pick-up services at the community level. 

Earlier this year, Skyline SACCO launched a Remittance and Diaspora Policy, signalling a shift from pilot participation to institutional ownership of remittance services.

Programme Patron Mr. Daniel Lesirma, CFO at Credit Bank PLC, said that the initiative also tested incentive models for SACCO members, leading to a measurable increase in savings.

“Monitoring showed that more than 400 members from a single sacco increased their savings within six months of participating in training sessions.” Said Daniel.

Looking ahead, IFAD and partners are exploring new remittance corridors, including Germany, to connect more diaspora communities 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, lead Remittances and Inclusive Digital Finance at IFAD.

Diaspora remittances have an integral role in emerging economies like Kenya and with an estimated $4 billion sent back home each year, they present a crucial source for foreign exchange and capital flows into the country.

Credit Bank PLC chief executive officer, Ms Betty Korir, said that by linking SACCOs to international remittance networks, the program placed global financial flows directly into the hands of the people who needed them most.

She said that while the initial phase of this project formally concludes, the real test of success would be in the ripple effects across villages and trading centers.

According to the CEO, Credit Bank PLC has a well-structured recapitalization plan to strengthen the bank’s position and allow it to keep supporting SMEs with reliable access to remittances.

The project’s success now demonstrates that building financial resilience in rural Kenya requires more than infrastructure but requires partnerships that combine global networks, local institutions, and the community.

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