Savings and credit co-ops (saccos) can help drive financial inclusion for refugees and migrants in Kenya, but face critical regulatory barriers, a study argues.
The report, from the World Council of Credit Unions (Woccu), developed in partnership with the African Confederation of Cooperative Savings and Credit Associations (Accosca), is based on qualitative research conducted with sector leaders and refugees.
It finds that while demand for financial services is strong, access remains inconsistent due to documentation challenges, regulatory uncertainty and product misalignment with the realities of refugee livelihoods.
Saccos, as member-owned financial co-operatives rooted in community trust, are uniquely positioned to serve this population, the report argues. In several cases, it finds that institutions are already adapting by introducing flexible savings products, adjusting credit models and partnering with local organisations to better meet the needs of underserved communities.
“Expanding financial inclusion requires practical solutions and strong partnerships,” said Angelina Tracy, vice president of strategic growth and global programmes at Woccu. “What this report shows is that saccos are already adapting to meet the realities of the communities they serve.
“With greater regulatory clarity and continued collaboration, their impact can grow even further, supporting financial stability and long-term economic resilience.”
The report also underscores the importance of policy alignment, noting that while Kenya has made progress in advancing refugee inclusion through national strategies and legal frameworks, implementation remains uneven. Clearer guidance on identity requirements and risk-based approaches to compliance could help expand access while maintaining financial system integrity.
”Credit unions can play a critical role in advancing refugee financial and economic inclusion by doing what they do best: delivering equitable, sustainable and community-based financial services,” wrote Woccu CEO Paul Treinen in the report. “The opportunity isvclear, and the path forward is within reach. Woccu is committed to advancing this work and supporting practical approaches that expand access for underserved populations.”
As financial services continue to evolve globally, the findings reinforce the broader role of co-operative financial institutions in reaching underserved populations and strengthening inclusive economic systems, adds Woccu.
