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Kuppet wants banks stop teachers’ loan deductions over corona pandemic

The Kenya Union of Post-Primary Education Teachers (Kuppet) has asked the tutors’ employer to stop loan deductions during the Covid-19 pandemic.

Kuppet secretary-general Akelo Misori said the Teachers Service Commission should work with financial institutions with a view to having the deductions stopped until the pandemic is declared over.

“We have received complaints from teachers about banks deducting loan interest for March,” he said.

Last month, the government asked banks, saccos and other financial institutions to provide relief on loan repayments as the country battles coronavirus.

Mr Misori said the directive applies to loans that were running at the time it was issued.

“While many financial institutions have obeyed the directive and suspended interest during this period, others are dragging their feet or creating unnecessary hurdles on a policy that should benefit every worker,” he said.

The union added that many teachers live far from their stations or their bank branches and find it difficult to make individual applications for the waiver.

To help implement these measures, Mr Misori said, large employers who manage check-off payment systems should ensure the banks withhold deductions on interest.

A week ago, the Kenya Women Teachers Association also called on banks to extend loan repayment periods by not less than six months.

The union also urged financial institutions to waive interest accrued during that period.

The Central Bank has asked customers to talk to their lenders and seek to extend loan repayment periods.

CBK Governor Patrick Njoroge said banks should consider individual circumstances arising from the pandemic.

The Kenya National Union of Teachers (Knut) urged the government to consider suspending April, May and June rent payment for workers, including teachers.

Knut secretary-general Wilson Sossion said the suspension would cushion teachers and other employees from the adverse effects and economic challenges brought by the coronavirus.

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