The Kenya Union of Post Primary Education Teachers (KUPPET) has claimed that some commercial banks have not complied with the presidential directive to provide relief for workers on the repayment of loans during this coronavirus pandemic.
In a statement Tuesday, KUPPET Secretary General Akelo Misori said he had received complaints from teachers whose banks had levied interest on their loans last month.
Misori said teachers currently live far away from their work stations or their bank branches and would find it difficult making individual applications for the waiver.
” While many financial institutions have followed the directive and suspended the levying of interest during this period, others are dragging their feet, or creating unnecessary means tests on a policy that should benefit all workers. We have received complaints from teachers whose banks deducted interest on March salaries. We don’t know with certainty the extent of compliance with this directive. Many teachers currently live far away from their work stations or their bank branches and would find it difficult making individual applications for the waiver.” He said.
Misori has now appealed to the Teachers Service Commission (TSC) to intervene and liaise with financial institutions that have not complied with the presidential directive on the same, on behalf of teachers.
” “Besides, the government has also initiated a huge economic stimulus programme and issued policy directives to cushion families and businesses from the effects of reduced business activity during this crisis. Last month, it issued a directive to commercial banks and other financial institutions to provide relief for workers on the repayment of loans during the pandemic.” He noted
Adding that for the avoidance of doubt, it is important to note that the government directive applies to all loans that were running at the time of the declaration of the relief, across all financial institutions and categories of loan – be they for development, long term loans, or emergency loans.
” To help implement these measures, large employers who manage check-off systems for employees must require financial institutions to withhold interest deductions on loans.” Said Misori.
The Secretary General noted that as Kenya continues to fight the coronavirus disease (COVID-19) pandemic, strict adherence to the government’s directives will be key to stemming the tide of new infections.
Last month President Uhuru Kenyatta asked commercial banks and other lenders to suspend levying of interest on the loans during this coronavirus pandemic period.