The TSC is seeking Sh17 billion parliamentary approval to fund the second phase of the 2021-2025 CBA and other teacher welfare needs. The commission had allocated Sh13 billion for this phase but due to budgetary constraints the supplementary funding is required before the financial year ends on 30th June 2025.
Breakdown of the Additional Sh17 Billion
TSC has classified the Sh17 billion under “teacher resource management” with the funds allocated as follows:
- Sh10.2 billion – Implementation of the second phase of the 2021-2025 CBA
- Sh4.9 billion – Teachers’ medical scheme
- Sh1.8 billion – Conversion of 46,000 intern teachers to permanent and pensionable terms
- Sh1 billion – Promotions
TSC CEO Nancy Macharia explained that these are recurring expenditure, mainly salaries and benefits. She noted that the 2021-2025 CBA was only signed in 2023 and while the first phase (2023-2024) was implemented the second phase (2024-2025) requires Sh13 billion which has already been paid. However this has resulted to a funding gap that needs to be bridged.
TSC’s Overall Budget Deficit
While appearing before the Education Committee, Ms. Macharia stated that TSC’s budget was revised upwards by Sh18.56 billion for:
- Sh17.9 billion – Emoluments
- Sh300 million – Teacher capacity development
- Sh328 million – General administration and planning
Despite this revision TSC still has a Sh30.4 billion deficit which affects:
- Teacher salaries
- Teacher promotions
- Medical insurance and group life contributions
- Intern teachers’ employment
Ms. Macharia noted that Sh13.8 billion is required to confirm 46,000 teacher interns as permanent staff by January 2025 and Sh9.3 billion for teachers’ medical insurance and group life contributions.
Budget Utilization and Outstanding Funds
As of 31st December 2024, TSC had used a significant chunk of its Sh347.888 billion budget, with:
- Sh347.493 billion – Used for current expenditure, salaries, operations and maintenance
- Sh395 million – Allocated to development projects such as:
- Secondary Education Quality Improvement Project (SEQIP)
- Kenya Primary Education Equity in Learning Programme (KPEELP)
By mid-financial year, 49.6% (Sh172.698 billion) of the current budget had been utilized, slightly below the expected 50% absorption rate. 35% (Sh138 million) of the development budget had been spent.
There is also Sh4.3 billion of outstanding Exchequer funds from the previous financial year that has not been paid, further straining TSC’s resources.
Government Allocation and Way Forward
Despite these challenges, the government has provided:
- Sh1 billion – For promotions
- Sh300 million – For Competency-Based Curriculum (CBC) training
Ms. Macharia warned that if no additional funding is secured the education sector will be severely disrupted and teacher morale, service delivery and overall learning outcomes will be affected. She called for immediate action to ensure smooth implementation of the CBA, salary payments and welfare programmes.