In 1993, the life of a teacher in Kenya was defined by dedication, resilience, and constant financial strain. Salaries were paid in cash, often delayed, leaving educators with little room to save or plan for emergencies. SACCOs provided some support, but their resources were limited, and loans could take months to process. In urgent situations, many teachers turned to credit in kind, borrowing items such as bicycles, radios, fridges, or televisions to sell for cash. Though sometimes necessary, this method often led to financial losses and emotional stress.
Mary, a teacher in a rural village, remembers that year vividly. She sat on her porch one humid evening, staring at a slip of paper listing her child’s school fees. She needed Ksh 5,000, and the SACCO loan would take months. At that time, SACCOs would lend up to three times a member’s savings, a system intended to provide flexibility in emergencies. Mary had borrowed a bicycle on hire purchase for Ksh 18,000 and sold it for Ksh 3,000—barely enough to meet her urgent needs. Yet she had to navigate not only financial strain but also nepotism in some SACCOs, where loan approvals favored friends or relatives of committee members. That night, she cried quietly, feeling that all her hard work—the lessons taught, evenings spent marking papers, care given to students—had yielded little for her own family.
John, another teacher from a neighboring county, faced a similar dilemma. His child fell sick, and he had no money for hospital fees. He borrowed a fridge on credit, planning to sell it for cash. By the time he managed to sell it, he had recovered barely half the value. In some SACCOs, John knew, loans were sometimes approved based on personal connections rather than urgent need or savings history, leaving deserving teachers waiting for assistance while others benefitted unfairly. Every day, as he taught children unaware of his struggles, he felt the weight of responsibility pressing down on him.
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Even in urban Nairobi, young teachers like Alice experienced their own pressures. She had taken a small community loan to cover urgent expenses, but repayment demands were relentless. Stress followed her into her tiny apartment and lingered in her classroom. She looked to older colleagues with admiration and quiet envy.
Their calm composure came from decades of navigating hardship—a quiet resilience that only experience could forge. Today, most of these teachers are either retired or approaching retirement, their careers spanning decades of service under challenging circumstances. Their sacrifices, the nights spent worrying about loans and urgent needs, and the resilience they displayed are often overlooked.
By 1993, SACCOs such as Mwalimu Sacco, WINAS Sacco, and Gusii Mwalimu Sacco,were some of the best however others provided structure and support, but loans were still small relative to need, processing was slow, and nepotistic practices sometimes left deserving teachers disadvantaged. Over time, commercial banks recognized teachers as dependable borrowers, offering larger sums, faster access, and structured repayment plans.
By the Kibaki era (2002–2013), bank loans were integrated with the Teachers Service Commission payroll system, allowing automatic deductions and predictable repayment schedules. SACCOs also evolved, introducing flexible repayment options, competitive interest rates, and faster processing, providing teachers safer access to funds while gradually reducing favoritism and unfair practices.
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Even with these improvements, the experiences of 1993 remain poignant. Teachers endured not only financial strain but also emotional burdens. Sleepless nights, anxiety over repayments, and the fear of failing their families marked daily life. Mary, John, and Alice’s stories illustrate the quiet heroism of educators, whose commitment to their students often came at great personal cost.
Government intervention is critical. Fair lending practices, ethical oversight, and strict regulation by the Central Bank of Kenya, in partnership with the Teachers Service Commission, are essential to protect educators from exploitation and nepotistic practices, ensuring that they can focus on teaching rather than survival.
These stories—bicycles sold at massive losses, fridges traded for urgent cash, sleepless nights worrying about repayments—are more than anecdotes. They are testaments to courage, determination, and resilience. The journey of teacher lending in Kenya is a story of struggle, perseverance, and gradual progress.
From cash-based salaries and risky credit-in-kind arrangements in 1993 to structured SACCO and bank loans today, teachers have navigated a complex financial landscape with quiet heroism. By learning from these experiences, valuing older teachers, relying on regulated institutions, and maintaining government oversight, educators can achieve financial stability, ensuring that economic pressures never overshadow their critical role in shaping the next generation.
By Hillary Muhalya
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