The Teachers Service Commission (TSC) has addressed rumors circulating on social media regarding an update on teachers’ Sacco deductions from their salaries.
In a statement issued on January 7, 2025, the Commission dismissed as fake a post claiming that it had plans to end direct Sacco deductions from teachers’ salaries.
The false statement alleged that the Commission would halt such deductions by February 2025, marking a major shift in how teachers in Kenya contribute to Savings and Credit Cooperative Organizations (SACCOs).
The misleading post suggested that the move aimed to simplify payroll processes and provide teachers with more control over their finances. It also claimed that teachers would be required to manage their Sacco payments independently, utilizing mobile money or online banking instead of automatic deductions.
TSC clarified that Sacco contributions and loan repayments are traditionally deducted directly from teachers’ salaries through an integrated payroll system, which has worked effectively for many. However, issues such as delays and unauthorized deductions have led to some complaints in the past.
How Teachers Manage Their Contributions to SACCOs
Teachers employed by the Teachers Service Commission (TSC) in Kenya manage their SACCO contributions through a system integrated with their salary payments. Here’s how it typically works:
- TSC teachers have SACCO contributions automatically deducted from their monthly salaries.
- These deductions are part of the broader payroll system managed by the TSC. Teachers authorize the deductions when they join a SACCO or apply for loans, with the amounts included in their salary check-off system.
- The TSC uses an online platform called T-Pay for managing payslips and other financial transactions.
- Teachers can access this platform to view their payslips, which include SACCO deductions.
- The system also enables teachers to send their salary slips to SACCOs or banks for loan processing and other financial services.
While some teachers have experienced issues with their remittances not reaching SACCOs or banks, causing difficulties with loan repayments and savings, unions or teachers themselves have sometimes had to intervene or find alternative solutions to resolve these problems.
