Nairobi — A bank has launched a teachers loans scheme in south Nyanza to enable them advance their education.

KCB chief executive officer Martin Oduor-Otieno said the new product will cater for teachers' fees adding it will be rolled out to other parts of the country to cover over 200,000 tutors.

"We are using Rongo constituency as a pilot project for this product and will first target 3,000 teachers in the area. With this new proposition, we will target all teachers borrowing under the KCB Teachers Loan Scheme," Mr Otieno said at the Rongo School for the Deaf during the launch at the weekend.

The CEO said teachers will be eligible for loans of up to Sh3 million to pursue graduate and postgraduate studies in public and private universities in the country at prevailing market rates currently standing at between 15 and 18 per cent.

He said the loans would be repaid within a period of 84 months.

"For teachers with loans in other banks, KCB will buy off these loans in order to smoothen the repayments over this extended period. We at KCB believe education is the key to development and to a better future," said Mr Otieno.

"All you need to do is commit to save a monthly sum in your account for six months at the end of which you will be eligible for a loan equivalent to your university fees," Mr Otieno added.

He said the bank has plans to open five new branches in Nyanza - two in Kisii and one each at the Isebania border town, Rongo and Mbita.