TSC issues new guidelines for teachers exiting SACCOs

November 24, 2024

TSC circular on teachers wishing to leave teachers' SACCOs.

The Teachers Service Commission, TSC, has released new guidelines for teachers intending to withdraw their membership from Savings and Credit Cooperative societies (SACCOs). In the latest regulations, all withdrawal requests shall be done online. This shift has been necessitated by the current covid-19 pandemic.

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“Following the Ministry of Health guidelines regarding safety of citizens and workers in public sector during the covid-19 pandemic, the Commission has revised methods of serving teachers.” says TSC Boss Dr. Nancy Macharia.

Whereas some SACCOs have been sending teachers to the head office for clearance, the Commission now tells them to send such requests online.

“In order to serve our teachers efficiently and effectively, all requests for SACCO clearance for any exiting teachers shall be done online by the SACCO concerned,” adds Dr Macharia in the latest circular dispatched to all teachers’ SACCOs.

HOW TO WITHDRAW FROM A SACCO.

The Commission has said such requests will be processed and feedback provided within two (2) working days.

Under section 156 of the Code of conduct for teachers, ‘a teacher may exit from the Teaching Service through resignation; termination; dismissal; retirement; redundancy; transfer of service and death.’

If a teacher then, wishes to also cease to be a member of the SACCO, such a teacher must fill a withdrawal form. The release has to be ratified by TSC.

Among other requirements, for one to be cleared by the SACCO, the teacher should not have guaranteed anybody and his her shares should be able to cover all the liabilities in the SACCO (loans) and any outstanding amount for the Front Office Services Activities (FOSA).

A clearance certificate from TSC confirming that one does not owe the government is also a requirement. Before the teacher receives his/ her savings from the SACCO, the employer must check if the individual has outstanding remittances to the government.

“Where a teacher has outstanding government liability, the Commission shall require the teacher to clear the liability within a period of three (3) months failure to which the
Commission shall institute legal proceedings to recover the outstanding Government
Liability.” Adds the code.

It is important to note that any over-payment or payment for work not performed shall constitute a Government Liability. Unpaid imprests (funds borrowed from school monies) also constitute government liabilities.

The Commission has at the same time sounded a warning to SACCOs which may opt to release members without due process.

“We reiterate that any SACCO which allows withdrawal of its exiting members without clearance from the Commission will have its monthly remittances reduced by the equivalent amount of government liability due to the Commission from the teacher,” warns DR. Macharia.

Read also;

HOW TO WITHDRAW FROM A SACCO.

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