Treasury distances itself from lecturers’ strike, blames Education Ministry and SRC

National Treasury CS John Mbadi appeared before the Parliamentary Labour and Social Welfare Committee on August 20, 2025. (Photo: National Treasury)

By Lucy Mumbi
Sunday, October 5, 2025

According to Treasury CS John Mbadi, the government released the agreed Sh4.3 billion to universities and a further Sh2.7 billion this year.

The Treasury has absolved itself of blame over the ongoing lecturers’ strike, saying it has already released the funds agreed upon last year and that the dispute lies between the Education ministry and the Salaries and Remuneration Commission (SRC).

According to Treasury CS John Mbadi, the government released the agreed Sh4.3 billion to universities and a further Sh2.7 billion this year, insisting that the ongoing standoff stems from a lack of coordination between the two institutions.

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He said the Treasury had fulfilled its obligations and should not be dragged into the current impasse, which he attributed to “a lack of understanding”

“In my view, the problem with the lecturers’ strike is not with the Treasury. The issue lies in the lack of understanding between the Ministry and the Salaries and Remuneration Commission (SRC). That’s where it needs to be resolved,” Mbadi said during an interview with Citizen TV on Saturday night.

He explained that the government had honoured its part of the agreement reached with universities by releasing Sh4.3 billion last year under Article 223 of the Constitution, funds that were later regularised in the Supplementary Budget.

“Last year, we agreed and allocated Sh4.3 billion as agreed. The funds were released under Article 223 and later regularised in the Supplementary Budget. For this financial year, we committed to releasing Sh2.7 billion, which we already disbursed at the beginning of the year, even though it was supposed to be spread out over the course of the year. We decided to release it in full,” he said.

Mbadi questioned the timing of the lecturers’ grievances, saying the arrears they are referring to date back several years. He noted that the matter of determining how much is owed to lecturers falls under the Education and Labour ministries.

“I will also mention that the question of how much was actually owed is something I’ve only heard about; I don’t have the full facts. That matter lies with the Ministries of Education and Labour,” he said.

“From what I understand, there were amounts that were supposed to have been paid between 2017 and 2021. I don’t know what the lecturers were waiting for; if those payments were due in 2021 and were not made. I don’t understand why it has taken until 2025 for these concerns to be raised.”

The Treasury CS, however, acknowledged that the lecturers’ issue remains a serious concern and that the government must confront past financial obligations while working with relevant ministries to determine what is genuinely owed.

“This is one government, a government that is continuing, and we have to deal with the baggage of the past. Let them, however, agree with the Minister of Education on how much is actually owing to them,” he said.

Turning to the question of capitation for universities and schools, Mbadi maintained that the government has been disbursing funds in full according to the agreed formula of 50 per cent, 30 per cent and 20 per cent. However, he pointed out that the challenge of underfunding has persisted for years.

“However, there has been a persistent question about underfunding of capitation, and I have spoken about this before. Sometimes when I raise the issue, I don’t know whether people fail to understand me or simply choose not to,” he said.

He revealed that the government had identified that the full amount of capitation required had not been provided for nearly seven years, but added that corrective measures were now underway following President William Ruto’s directive.

“The truth is, the full amount of capitation required has not been provided for about seven years. We identified this as a problem, and we are addressing it. The government is very clear on this; the President has given express instructions to me and the Minister for Education. We have already calculated and agreed on how much is actually needed, and that amount will be factored into the budget to ensure capitation is released in full and at optimal levels,” Mbadi said.