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.
Unionless Teachers Threaten to Strike Over agency fees
How to reject Agency Fee From Your Pay Slip
Nationwide Survey and Review Of Hardship Areas Begins Today
Fate Of Non-Union Teachers Finally Sealed
Five Newly Appointed TSC commissioners Take Oath Of Office
Nyahururu Teachers To Face The DCI Over Photo Of Pupils Tied To A Tree
MOE Releases Fresh Rules And Guidelines For Registration of New Schools
Sossion In Bomet Senatorial Race
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.
Thanks for reading our article. Funds From this blog goes towards needy children. Kindly Support them by clicking the button below: