TSC To Stop Sacco Deductions For All Teachers In These Job Groups As From Feb 2025 .
TSC To Stop Sacco Deductions For All Teachers In These Job Groups As From Feb 2025 . TSC to Stop Sacco Deductions for All Teachers Registered in Various Saccos in 2025.
In a significant policy shift affecting thousands of teachers across Kenya, the Teachers Service Commission (TSC) announced that it will cease direct salary deductions for teachers registered with various Savings and Credit Cooperative Organizations (Saccos) starting in 2025. This move, aimed at streamlining payroll management and enhancing financial autonomy for educators, marks a new chapter in how teachers interact with their financial service providers.
According to a statement from TSC, this decision stems from a need to reduce administrative complexities associated with managing third-party payments on behalf of teachers. Traditionally, the commission has facilitated direct remittance of loan repayments and savings contributions to Saccos, a service that has attracted both praise and criticism. While some teachers appreciated the convenience, others cited issues such as delays in remittance and unauthorized deductions.
The shift is expected to place greater responsibility on teachers to manage their own financial commitments. Teachers will now be required to make direct payments to their respective Saccos or financial institutions. This transition may require teachers to adopt new financial management strategies and leverage digital payment platforms for efficiency and timeliness.
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However, concerns have been raised about the potential impact of this change. Sacco leaders fear a rise in default rates on loans, as automated deductions have traditionally ensured consistent repayments. Teachers’ unions have also expressed mixed reactions, with some leaders arguing that the policy may burden teachers with additional administrative tasks, while others welcome the move as a step toward greater financial independence.
The TSC assured teachers that it will collaborate with stakeholders to ensure a smooth transition. Workshops and training sessions on financial literacy and best practices for managing direct payments are planned to help teachers adapt to the new system. As 2025 approaches, the education sector will be watching closely to see how this policy shift unfolds and its broader implications for teachers’ financial well-being.
