Teachers struggle with loan repayments as TSC fails to remit cash

Teachers struggle with loan repayments as TSC fails to remit cash

Teachers across Kenya are currently facing significant financial challenges due to the Teachers Service Commission’s (TSC) failure to remit their loan deductions on time. David Bett, a secondary school teacher in Kuresoi South, Nakuru County, is among those affected. He had taken a loan of Ksh 670,000 from a teachers’ sacco to expand his agricultural business. For nearly a year, the TSC consistently remitted Ksh 14,000 monthly towards this loan. However, these payments stopped three months ago without explanation.

The sacco contacted Mr. Bett to inquire about the halted payments, questioning whether he was still employed by TSC or if there had been any changes in his employment status. To his surprise, Mr. Bett discovered that his sacco shares worth Ksh 42,000 had been used to cover the missed loan payments. The sacco management explained that, since his salary was processed through another financial institution, the only way to recover the outstanding amount was by using his shares. Mr. Bett is now puzzled as to why the money deducted from his payslip by TSC was not remitted to the sacco.

Similarly, Hellen Nyaboke, a teacher in Narok County, found out last month that TSC had failed to remit her National Social Security Fund (NSSF) deductions. This was an unprecedented issue in her 11 years of service. Ms. Nyaboke requested a statement of her remittance history from TSC. Although NSSF assured her that the matter would be addressed as long as she remained employed, she is still waiting for a resolution.

The problems faced by Mr. Bett and Ms. Nyaboke are not isolated cases. Many teachers have experienced similar issues due to TSC’s failure to remit third-party deductions, which has impacted not only loan repayments but also statutory contributions to entities like NSSF, the Kenya Revenue Authority (KRA), Pay As You Earn (PAYE), and the National Hospital Insurance Fund (NHIF).

TSC CEO Nancy Macharia acknowledged that these concerns had been raised by teachers’ unions, including the Kenya National Union of Teachers (Knut) and the Kenya Union of Post Primary Education Teachers (Kuppet). Dr. Macharia stated that resolving these issues was crucial to avoiding a planned teachers’ strike, set to begin on August 26, 2024. However, Knut and Kuppet have expressed dissatisfaction with TSC’s response, accusing the commission of being evasive about the immediate remittance of all third-party deductions. They allege that TSC has acted in bad faith, causing teachers to lose trust in the institution.

Knut and Kuppet leaders, Mr. Akello Misori and Mr. Collins Oyuu, highlighted the unfortunate situation where teachers are being harassed by financial institutions due to TSC’s failure to remit deductions. They questioned where the money deducted from teachers’ pay slips had gone, with Mr. Misori noting that it is unacceptable for teachers to be threatened by auctioneers for loan defaults that are not their fault.

As teachers in public schools prepare to strike at the start of the third term, which is critical for students preparing for national exams, the unions have also raised other concerns. Among these are the government’s failure to allocate Ksh 13.3 billion for the implementation of the second phase of the 2021-2025 Collective Bargaining Agreement (CBA) and the need for discussions on the 2025-2029 CBA. Additionally, the unions are demanding the promotion of 130,000 teachers, the employment of 20,000 new teachers, and the transition of 46,000 interns to permanent and pensionable terms.

The situation remains tense as teachers’ unions continue to push for immediate action, while TSC struggles to address these mounting issues.

Teachers struggle with loan repayments as TSC fails to remit cash