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Teachers Service Commission Clarifies Sacco Deductions: Everything You Need to Know

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The Teachers Service Commission (TSC) of Kenya has debunked a false claim circulating on social media about the cessation of automatic Sacco deductions from teachers’ salaries by February 2025. The TSC emphasized that no such policy change is planned, ensuring that the current system of payroll deductions for Sacco contributions remains in place.

Mechanism of Deduction:

Under the existing system, teachers’ contributions to their respective Saccos are automatically deducted from their monthly salaries. This ensures regularity in contributions, which is beneficial for maintaining loan eligibility and savings. Teachers do not need to manage these payments manually; the deductions are streamlined through the payroll process, offering convenience and ensuring financial discipline.

Popular Saccos for Teachers:

Several Saccos cater specifically to teachers in Kenya, providing them with financial services tailored to their needs:

  1. Mwalimu National Sacco – The largest Sacco in East Africa, boasting over 100,000 members, predominantly teachers from all Kenyan counties. It has recently expanded to include intern teachers.
  2. Metropolitan National Sacco Society Ltd – Originally known as Kiambu Teachers Sacco, it has branches across Kenya including Nairobi, Kisumu, and Nakuru, serving over 100,000 members.
  3. Mentor Society Sacco Ltd – Based in Murang’a, it includes TSC employees, civil servants, and others, with a membership of over 18,000.
  4. New Fortis Savings and Credit Co-operative Society – Established in 1976, it has grown to include 14,082 members from various professions, initially starting with teachers from Nyeri.
  5. Gusii Mwalimu Sacco Society Ltd – One of the oldest teacher Saccos in Kenya, with 31,000 members, offering financial products suited for educators.
  6. Nakuru Teachers Sacco (Cosmopolitan Sacco Society) – With roots in Nakuru, it now serves members across several regions with branches in Narok, Bahati, Naivasha, and Molo.
  7. Kitui Teachers Sacco Society Ltd – With a history dating back to 1976, it now includes members from various government sectors.
  8. Marsabit Teachers Sacco Society Ltd (BI High Sacco) – Known for its competitive financial products, it has grown from 33 initial members to a significant community of teachers.
  9. Mwingi Teachers Sacco Society Ltd – Membership extends beyond teachers to include civil servants and private school employees.
  10. Elgon Teachers Sacco Society Ltd – Located in Kimilili, offering loans and savings options to its members.

The TSC’s prompt clarification has reassured teachers that their financial planning with Saccos will not be disrupted by this misinformation. Teachers can continue to benefit from the automatic deduction system, which not only simplifies their financial management but also ensures they maintain good standing with their Saccos for access to various financial products.

This clarification was critical in maintaining the financial stability of teachers, who rely on the structured deductions to manage their savings and loans efficiently. With an average salary for high school teachers at KSh 451,525 as of 2024, these deductions play a vital role in their financial strategy.