The Teachers Service Commission (TSC) is seeking parliamentary approval for an additional Sh17 billion to facilitate the second phase of the 2021-2025 Collective Bargaining Agreement (CBA) and address other pressing teacher welfare needs.
Initially, TSC had allocated Sh13 billion for this phase. However, since these funds were not included in the national budget, the TSC now requires supplementary funding to ensure the smooth continuation of teacher salary adjustments and benefits before the financial year ends on June 30.
The requested Sh17 billion has been classified under “teacher resource management” and is part of the supplementary budget currently awaiting approval by the National Assembly.
A recent TSC presentation to the Education Committee outlined how the funds would be utilized, breaking them down into key areas.
Out of the Sh17 billion, Sh10.2 billion will be allocated to implementing the second phase of the 2021-2025 CBA, Sh4.9 billion will go toward the teachers’ health insurance scheme, Sh1.8 billion will be used to convert 46,000 intern teachers to permanent and pensionable terms, and Sh1 billion will cater to teacher promotions.
TSC Chief Executive Officer Nancy Macharia emphasized that these expenses are recurrent and are meant to cover salaries and essential benefits.
She explained that the 2021-2025 CBA was only signed in 2023, meaning that initial allocations were not factored into previous budgets.
Consequently, while the first documented phase of the agreement (2023-2024) has already been implemented, the ongoing 2024-2025 financial year marks the second phase, requiring the Sh13 billion that has already been paid.
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However, this expenditure has resulted in a significant funding deficit that now necessitates urgent intervention.
Ms. Macharia underscored the importance of additional funds to sustain teacher salaries, medical insurance, and other critical commitments.
While appearing before the Education Committee last week, she stated that the TSC’s budget had been revised upwards by Sh18.56 billion, primarily to cover personnel emoluments (Sh17.9 billion), teacher capacity development (Sh300 million), and general administration and planning (Sh328 million).
However, despite this revision, the commission still faces a staggering Sh30.4 billion shortfall, which directly affects teacher salaries, promotions, and benefits.
According to Macharia, the deficit includes the cost of converting 46,000 teacher interns into permanent and pensionable employees, which will cost Sh13.8 billion from January 2025.
Additionally, medical insurance and group life contributions for teachers will require Sh9.3 billion, further straining the commission’s already stretched budget.
As of December 31, 2024, TSC had already utilized a significant portion of its Sh347.888 billion budget under the supplementary allocation. The breakdown shows that Sh347.493 billion was spent on recurrent expenditures such as wages, operations, and maintenance, while Sh395 million was directed towards development projects.
These projects include the Secondary Education Quality Improvement Project (SEQIP) and the Kenya Primary Education Equity in Learning Programme (KPEELP)—both of which are aimed at improving education standards across the country.
By the mid-financial year, TSC had absorbed Sh172.698 billion from its recurrent budget, translating to a 49.6 percent absorption rate, which falls slightly below the expected 50 percent.
Meanwhile, only Sh138 million had been utilized from the development budget, amounting to 35 percent absorption. These figures highlight the financial strain facing the commission and the urgent need for additional funds to sustain teacher-related programs and obligations.
The National Assembly’s decision on the supplementary budget will determine whether thousands of teachers receive their promised salary increments, medical coverage, and job confirmations.
If the additional 17 billion shillings is approved, it will go a long way in addressing the commission’s financial gap, ensuring that the second phase of the 2021-2025 CBA is fully Implemented and that teachers continue to receive their salaries and benefits without disruption.
With the education sector being a key pillar of national development, the government faces growing pressure to prioritize teacher welfare and resource allocation.
The coming weeks will be critical as Parliament deliberates on the supplementary budget, a decision that will have a lasting impact on the teaching profession and the quality of education in Kenya.
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