TSC Grapples with Sh30.4 billion Funding Shortfall, Seeks Extra Sh17 Billion for Teacher Pay and Promotions.
The Teachers Service Commission (TSC) is requesting parliamentary approval for an additional Sh17 billion to facilitate the second phase of the 2021-2025 Collective Bargaining Agreement (CBA) and cater to other essential teacher welfare needs.
Initially, Sh13 billion had been allocated for this phase; however, since these funds were not included in the budget, the commission now requires supplementary financing before the financial year concludes on June 30.
This additional amount, categorized under “teacher resource management,” is part of the supplementary budget currently under consideration by the National Assembly.
A presentation by TSC to the Education Committee outlined the allocation of these funds, with Sh10.2 billion designated for the CBA’s implementation, Sh4.9 billion for the teachers’ health insurance scheme, Sh1.8 billion to convert 46,000 intern teachers to permanent and pensionable terms, and Sh1 billion for teacher promotions.
Breakdown of Budget Deficit
TSC Chief Executive Officer Nancy Macharia clarified that these are recurrent expenditures covering salaries and benefits. She explained that the ongoing implementation of Phase 2, along with the medical scheme, are merely top-ups. She further noted that the 2021-2025 CBA was signed in 2023 without prior allocation.
The first phase, covering the 2023-2024 financial year, had already been implemented, and the second phase, requiring Sh13 billion, had been paid. However, this expenditure has led to a funding deficit, alongside the Sh4.9 billion shortfall in the medical scheme.
Appearing before the Education Committee last week, Ms Macharia underscored the urgent need for additional funds to sustain teacher salaries, medical insurance, and other obligations.
She disclosed that the commission’s budget had been revised upwards by Sh18.56 billion, primarily to cater for Sh17.9 billion in personnel emoluments, Sh300 million for teacher capacity development, and Sh328 million for general administration and planning.
However, despite this adjustment, the commission still faces a Sh30.4 billion deficit, impacting salaries, promotions, and benefits.
Personnel and Medical Insurance Challenges
Ms Macharia elaborated that the revised allocation remains insufficient, as the personnel emoluments requirement still falls short by Sh30.4 billion. This includes Sh13.8 billion needed to employ 46,000 teacher interns on permanent and pensionable terms starting January 2025.
Additionally, Sh9.3 billion is required to cover medical insurance and group life contributions for teachers.
By December 31, 2024, TSC had utilized a significant portion of its Sh347.888 billion budget under the supplementary allocation.
Of this, Sh347.493 billion went towards recurrent expenditures such as wages, operations, and maintenance, while Sh395 million was allocated to development projects, including the Secondary Education Quality Improvement Project (SEQIP) and the Kenya Primary Education Equity in Learning Programme (KPEELP).
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Absorption Rate and Pending Funds
By the financial mid-year mark, TSC had absorbed Sh172.698 billion from its recurrent budget, reflecting a 49.6 percent absorption rate, slightly below the expected 50 percent. Meanwhile, Sh138 million had been spent from the development budget, representing a 35 percent absorption rate.
Ms Macharia also pointed out that pending Exchequer funds from the previous financial year, amounting to Sh4.3 billion, remain unpaid, further straining the commission’s financial stability.
Despite these financial constraints, the government has allocated Sh1 billion for teacher promotions and Sh300 million for training under the Competency-Based Curriculum (CBC).
Ms Macharia reaffirmed the necessity for immediate intervention to secure funds for teachers’ welfare, warning that failing to address the funding deficit could destabilize the education sector.
TSC Grapples with Sh30.4 billion Funding Shortfall, Seeks Extra Sh17 Billion for Teacher Pay and Promotions.
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