TSC Seeks Sh17 Billion for 2021-2025 CBA Phase 2 & Teacher Welfare
The Teachers Service Commission (TSC) is requesting parliamentary approval for an additional Sh17 billion to implement the second phase of the 2021-2025 Collective Bargaining Agreement (CBA) and address key teacher welfare concerns.
Initially, TSC had allocated Sh13 billion for this phase, but due to budget constraints, the commission now requires supplementary funding before the financial year ends on June 30.
Breakdown of the Additional Sh17 Billion Request
The Sh17 billion, classified under “teacher resource management” in the supplementary budget before the National Assembly, will be allocated as follows:
- Sh10.2 billion – Implementation of the second phase of the 2021-2025 CBA
- Sh4.9 billion – Teachers’ health insurance scheme
- Sh1.8 billion – Conversion of 46,000 intern teachers to permanent and pensionable terms
- Sh1 billion – Teacher promotions
TSC Chief Executive Officer Nancy Macharia emphasized 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 explained.
However, this has led to a funding deficit, necessitating additional resources to cover the Sh4.9 billion shortfall in the teachers’ medical scheme.
TSC Budget Deficit and Funding Challenges
Ms. Macharia, while appearing before the Education Committee, stressed the urgent need for supplementary funds to sustain teacher salaries, medical insurance, and other commitments.
The commission’s budget was revised upwards by Sh18.56 billion, allocated as follows:
- Sh17.9 billion – Personnel emoluments
- Sh300 million – Teacher capacity development
- Sh328 million – General administration and planning
Despite this revision, TSC 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, amounting to Sh13.8 billion, as well as medical insurance and group life contributions for teachers at Sh9.3 billion,” she added.
TSC Budget Utilization & Pending Exchequer Funds
As of December 31, 2024, TSC had utilized a significant portion of its Sh347.888 billion budget under the supplementary allocation:
- Sh347.493 billion – Recurrent expenditure (wages, operations, maintenance)
- Sh395 million – Development projects, including the Secondary Education Quality Improvement Project (SEQIP) and the Kenya Primary Education Equity in Learning Programme (KPEELP)
By mid-year, the recurrent budget absorption rate stood at 49.6% (Sh172.698 billion), slightly below the expected 50%. Meanwhile, Sh138 million (35%) had been utilized from the development budget.
Additionally, TSC is still awaiting Sh4.3 billion in pending Exchequer funds from the previous financial year, further straining its financial position.
Government Allocations & Urgent Need for Funding
Despite the financial shortfall, the government has allocated:
- Sh1 billion – Teacher promotions
- Sh300 million – Training for 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 destabilize the education sector.
What’s Next?
TSC continues to engage the National Assembly to secure the required funds. Teachers are advised to stay informed as parliamentary discussions progress to determine the fate of their salaries, promotions, and benefits.
