Feature: Kenyan teachers hit with high interest rates amid salary dispute

Musa Makwaro is a bitter man. The primary school teacher in Western Kenya received his October salary on Tuesday. All his pay has gone to creditors and he remains penniless.

The government refused to release the salary for more than 200,000 teachers for the month of September due to a month-long strike, subjecting them to hard times.

Makwaro's employer, the Teachers Service Commission (TSC) insists that the teachers failed to teach during the month of September. Makwaro is facing similar predicament of difficulties to survive without money like September.

"I used my October salary to pay creditors and I have to go back again to seek credit for me to survive," Makworo, a teacher at a school within Kitale, told Xinhua on Wednesday.

Richard Magutu like Makworo is a troubled person. After the government failed to release the September salary, Magutu secured a soft loan of 20 U.S. dollars advanced to him by money lender in Kitale to meet his financially obligations in the family.

The loan which Magutu took attracted an interest of 30 percent.

"Imagine paying an interest of 60 dollars in less than two weeks. The government has exposed us to exploitation and I don't know when things will return to normal," laments Magutu.

The teacher is again broke and has to go for another credit facility to survive. Several money renders in Kitale popularly known as shylocks have raked in good business after giving soft loans to desperate teachers after they missed their September salary.

Sarah Chelimo who operates money lending business at Nyayo market in Kitale says that for the first time she was able to make a booming business this month after she rendered 500 dollars to some teachers.

"Truly I made good business from teachers. I had rendered 500 dollars and I have made an interest of 150 dollars. Previously it would take me more than ten months to make such huge interest," Chelimo told Xinhua at her business premise.

Many lenders had taken advantage of the teachers' crisis to rise the interest rate from 20 to 30 percent. Most teachers have received their October salary and since Tuesday banks experienced long queue from teachers withdrawing the salary.

Selina Simiyu, a vegetable vendor in Kitale town, has a reason to smile. Selina is one of the many people who had come to the rescue of teachers.

The mother of three who operates near Tusky supermarket received 20 dollars from three teachers who had been taking vegetable on credit.

"It is good that the teachers have been paid their salary. Three teachers who are my clients have paid for the vegetable they took in the past two weeks," said a smiling Selina.

In the villages, especially at the illicit brewing dens life is slowly turning to normal as teachers who are customers to the joints makes a comeback.

"At least since Tuesday the business has not been bad like in the past. Most of my clients are teachers and are back after getting their pay," said Jackie Amo, a chang'aa brewer (illicit brew) at Bidii village. Endit