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Teachers’ Loan Ability Reduced By 2%

The tensions between teachers and the Teachers Service Commission (TSC) concerning deductions in teachers’ payslips has taken yet another turn.

This time, the TSC has directed all the Commercial Banks and Saccos to allow a statutory deduction of 2% in all loan applications made by teachers.

This directive was arrived at after it emerged in August that pay slips of a section of teachers could not accommodate the 2% agency fee deduction which targeted unionless primary school teachers.

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Banks were instructed by the teachers’ service commission to factor the two per cent deduction in teachers’ payslips and to ensure there is room for it before processing any loan.

A number of banks have confirmed receiving a notification not to breach the new order. “TSC has re-introduced a deduction on KNUT Union contributions for teachers on their payslips. KNUT deductions are considered as statutory deductions and as such should also be considered when appraising the loans. For those teachers who have not been deducted the union contribution, kindly give an allowance of 2% of the basic pay in order to avoid breaching of ability,” reads a statement sent to the banks.

What this means is that teachers have already lost their ability to borrow loans from banks and SACCOS by 2%.

In August, TSC made deductions on teachers’ payslips to cater for Agency fee. KNUT deductions are considered as statutory deductions and as such Agency fee should also be considered statutory.

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