The Teachers Service Commission (TSC) has addressed claims regarding an update on teachers’ Sacco deductions from their salaries.
In a statement dated January 7, 2025, the Commission flagged as fake a post circulating on social media alleging that it had announced plans to end direct Sacco deductions from teachers’ salaries.
The statement, which was dismissed by TSC, had claimed that the Commission would stop direct Sacco deductions from teachers’ salaries by February 2025.
Additionally, the false statement claimed this move would mark a transformative change in how teachers in Kenya contribute to Savings and Credit Cooperative Organizations (SACCOs).
TSC dismisses claims of ending SACCO deductions from Teachers’ Salaries
It further alleged that the decision aimed to simplify payroll processes and give teachers greater control over their finances.
The misleading post also mentioned that, traditionally, Sacco contributions and loan repayments were deducted automatically from salaries—a method that had worked well for many but had also led to complaints about delays and unauthorized deductions.
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Moreover, the statement falsely claimed that teachers would now have to actively manage their Sacco payments independently. Instead of relying on automatic deductions, they would use modern payment methods such as mobile money or online banking.
How Teachers manage their contributions to SACCOs
Teachers employed by the Teachers Service Commission (TSC) in Kenya manage their contributions to Savings and Credit Cooperative Societies (SACCOs) through a system that is integrated with their salary payments. Here’s how it typically works:
TSC teachers have their SACCO contributions automatically deducted from their monthly salaries.
These deductions are part of the broader payroll system managed by the TSC. Teachers authorize these deductions when they join a SACCO or apply for loans, and the amounts are then included in their salary check-off system.
The TSC uses an online platform called T-Pay for managing payslips and other financial transactions.
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Teachers can access this system to view their payslips, which include deductions for SACCO contributions.
This platform also allows teachers to send their salary slips to SACCOs or banks for loan processing or other financial services.
Previously, teachers have encountered problems with their remittances not being sent to SACCOs or banks. This has resulted in difficulties with loan repayments and savings.
This has sometimes forced, teachers or their unions to step in or make alternative arrangements to resolve these issues.
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