The Teachers Service Commission (TSC) is seeking parliamentary approval for an additional Sh17 billion to implement the second phase of the 2021-2025 Collective Bargaining Agreement (CBA) and address other critical teacher welfare needs.
Initially, TSC had allocated Sh13 billion for the CBA’s second phase, but since these funds were not factored into the budget, the commission now requires supplementary funding before the financial year ends on June 30.
The additional Sh17 billion, classified under “teacher resource management,” is part of the supplementary budget currently before the National Assembly.
According to a TSC presentation to the Education Committee, the Sh17 billion is earmarked for Sh10.2 billion to implement the second phase of the 2021-2025 CBA, Sh4.9 billion for the teachers’ health insurance scheme, Sh1.8 billion for converting 46,000 intern teachers to permanent and pensionable terms, and Shl billion for teacher promotions.
TSC Chief Executive Officer Nancy Macharia explained that these are recurrent expenditures covering salaries and benefits.
“The ongoing Phase 2 implementation and the medical scheme are just top-ups. The 2021-2025 CBA for teachers did not initially have an allocation, as it was only signed in 2023. The first documented phase (2023-2024) was implemented, and now we are in the 2024-2025 financial year, which marks Phase 2, requiring Sh13 billion that has already been paid,” she said.
However, she noted that this expenditure has created a funding deficit, which must now be addressed, alongside the Sh4.9 billion shortfall in the teachers’ medical scheme.
While appearing before the Education Committee last week, Ms Macharia stressed the urgent need for additional funds to sustain teacher salaries, medical insurance, and other commitments.
She revealed that the commission’s budget was revised upwards by Sh18.56 billion, mainly to cater for Sh17.9 billion for personnel emoluments, Sh300 million for teacher capacity development, and Sh328 million for general administration and planning.
However, even with the revision, the commission still faces a Sh30.4 billion deficit, affecting teacher salaries, promotions, and benefits.
“The revised allocation still falls short of the commission’s personnel emoluments requirement by Sh30.4 billion. This includes the cost of employing 46,000 teacher interns on permanent and pensionable terms from January 2025, which amounts to Sh13.8 billion, as well as medical insurance and group life contributions for teachers at Sh9.3 billion,” she stated.
As of December 31, 2024, TSC had utilised a significant portion of its Sh347.888 billion budget under the supplementary allocation, including Sh347.493 billion for recurrent expenditure (wages, operations, and maintenance) and Sh395 million for development projects, including the Secondary Education Quality Improvement Project (SEQIP) and the Kenya Primary Education Equity in Learning Programme (KPEELP).
By the mid-year mark, TSC had absorbed Sh172.698 billion from the recurrent budget, representing a 49.6 per cent absorption rate, slightly below the expected 50 per cent.
Meanwhile, Sh138 million had been utilised from the development budget, translating to 35 per cent absorption.
Ms Macharia also highlighted pending Exchequer funds from the previous financial year, amounting to Sh4.3 billion, which remain unpaid and are further straining the commission’s financial stability.
Despite the financial shortfall, the government has allocated Sh1 billion for teacher promotions and Sh300 million for training on the Competency-Based Curriculum (CBC).
Ms Macharia reiterated the need for immediate intervention to secure funds for teachers’ welfare, warning that failure to address the funding deficit could destabilise the education sector.
Source: Daily Nation