Employer withholds Sh8b teachers loans

The Teachers Service Commission is withholding about Sh8 billion that is supposed to remit to various financial institutions for credit facilities offered to teachers.

Kenya National Union of Teachers secretary general Wilson Sossion yesterday accused the commission of embarrassing teachers by failing to remit the deductions in order to force them to work.

“They deducted these billions from teachers and are sitting on the money. We demand an explanation on why they have not paid third parties that includes banks, saccos, education schemes among others yet they have the money,” said Mr Sossion.

He said that those servicing bank loans are likely to be at loggerheads with the financial institutions for failing to honour their obligations.

The commission spends Sh14.5 billion as salaries and allowances for 288,060 teachers a month.

Mr Sossion said the unions have also been denied their dues.

At the moment, Knut with 206,000 members, collects about Sh1.6 billion a year while Sh135million is collected monthly from primary schools teachers. Kuppet with 34,000 teachers currently collects about Sh35 million per month and Sh425 million a year.

“In August teachers were not on strike but the commission has declined to give us our dues. These are some of strategies aimed at frustrating us but we will not be intimidated,” said Mr Sossion.
Workers at the union’s headquarters are yet to be paid their salaries due to the crisis.

The commission has also warned that it will not pay teachers their September salaries.

When reached for comment, the commission’s chairperson, Dr Lydia Nzomo, said she will have to look at the records before making a comment.

Meanwhile, in Laikipia County, teachers are in panic after the government withheld salary remissions to teachers’ saccos adversely affecting all sacco  activities.

Unison Sacco, formerly Laikipia Teachers Sacco yesterday resolved to solve fresh issuance of all normal and long term loans until the government releases all salaries.

A member and Kuppet Laikipia Executive Secretary Ndung’u Wangenye said the decision affects all its members on government payroll citing the government’s decision to withhold salaries.

Earlier, advance payments had been halted temporarily awaiting further directions from the government but the non-remittance could adversely affect sacco operations as even non-teachers’ sacco members could panic leading to sudden withdrawals.

Mr Wangenye urged 5,500 teachers to remain steadfast saying the union would fight to the last man.

Also affected are loan repayments that are the lifeline of saccos with the sacco deciding to halt all land acquisition loans, study loans, emergency loan, among other products.

Meanwhile, Knut senior officials have tripled their daily allowances and salaries.

In a letter dated January 3,  2015, to senior Knut staff in Nairobi, secretary general Wilson Sossion, increased allowances and salaries for union officials. The ten trustees are being paid Sh70,500 from Sh27,400.

Mr Sossion in the letter said the allowances are for officers travelling within the country and cover accommodation, subsistence and incidental expenses.