By 
Kanchibiya Constituency Member of Parliament, Sunday Chanda, has proposed the enactment of laws to regulate loan terms and interest rates for teachers, amid rising concerns over their indebtedness.
The Secondary Schools Teachers Union of Zambia (SESTUZ) recently highlighted the alarming levels of debt among teachers, prompting Chanda’s call for reforms.
In a statement released in Lusaka on Friday, the lawmaker suggested capping salary deductions for loan repayments to ensure teachers retain a fair share of their income.
“Teachers, as the cornerstone of Zambia’s educational system, deserve not only our respect but also concrete action to address their financial challenges,” Chanda said.
He added that the current debt crisis, driven by inadequate salaries, high-interest loans, and limited financial literacy, risks compromising the quality of education.
Chanda proposed the establishment of a government-backed Loan Buyout Program to consolidate teachers’ high-interest debts into single, low-interest loans.
Under this programme, the government would negotiate with financial institutions to purchase existing loans at discounted rates, providing teachers with more manageable repayment terms.
He also urged the government to review teachers’ salaries to align with inflation and the cost of living, while increasing allowances for housing, transport, and rural hardship to reduce reliance on loans.
Chanda called for the promotion of teacher-led Savings and Credit Cooperatives (SACCOs) to provide affordable financial products, tailored to their specific needs.
He also emphasized the importance of mandatory financial literacy training for teachers to improve budgeting, saving, and investment skills, thereby preventing future debt cycles.
Additionally, Chanda encouraged teachers to establish small-scale businesses or engage in income-generating activities such as farming, with access to micro-financing and capacity-building programs to ensure sustainability.
“The people of Kanchibiya acknowledge the concerns raised by SESTUZ. Addressing these challenges is vital to safeguarding teachers’ livelihoods and improving the quality of education for our children,” he said.
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