The Teachers Service Commission (TSC) will now end it will Sacco loans and BBF deductions from teachers’ salaries. According to the Commission, the deductions to Savings and Credit Cooperative Organizations (Saccos) will be stopped by February 2025.
Continue reading: Mwalimu sacco loans repayment schedule
The decision by TSC has been necessitated by the need to simplify payroll processes and giving teachers greater control over their finances.
Traditionally, Sacco contributions and loan repayments have been deducted automatically from salaries, a method that worked well for many but also caused complaints about delays and unauthorized deductions.
Teachers will now have to actively manage their Sacco payments on their own. Instead of relying on automatic deductions, they will use modern payment methods, such as mobile money or online banking. While this shift requires additional effort, it introduces convenience and encourages better financial independence.
To ensure a smooth transition, TSC has planned financial literacy workshops. These sessions aim to equip teachers with skills in:
Budgeting and payment tracking.
Using digital tools like mobile apps for payments.
Planning finances effectively to meet obligations.
Additionally, Saccos and financial institutions need to update their systems to make their services more accessible, ensuring a seamless transition for teachers.
The Teachers’ employer runs a number of third party and statutory deductions on its payroll. The third party deductions include those for Teachers’ unions and Insurance Schemes and bank loans recovery.
On the other hand, TSC also runs statutory deductions like Pay As You Earn (PAYE), Medical Scheme and the Housing Levy among others.
