Audit faults SRC as universities left with Sh7.7 billion CBA arrears
The report recommends urgent talks between the Ministry of Education, SRC, and university councils to reconcile figures and find resources to settle the Sh7.7 billion balance.
A government audit has revealed that public universities are still owed Sh7.7 billion in unpaid dues from the 2017–2021 Collective Bargaining Agreements (CBAs), highlighting significant discrepancies in the Salaries and Remuneration Commission’s (SRC) calculations.
The report, compiled by a verification committee under the Joint Negotiations Committee (JNC), found that the SRC used an incorrect computation method that understated the total amount owed to university employees.
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It revealed that the SRC’s assessment added up annual salary increases instead of applying the diagonal method, which factors both yearly and negotiated increments, as directed by the Employment and Labour Relations Court (ELRC).
“The SRC methodology was inconsistent with the diagonal method approved by the court and was therefore invalid,” reads the committee’s report signed in Machakos on October 13.
“Consequently, the conclusion by SRC that Sh624 million is the only amount owed to universities and their staff is incorrect.”
According to the committee, which included members from the Inter-Public Universities Councils Consultative Forum (IPUCCF), Federation of Kenya Employers (FKE), the Universities' Academic Staff Union (UASU), Kenya Universities Staff Union (KUSU), and Kenya Union of Domestic Hotels Educational Institutions Hospitals & Allied Workers (KUDHEIHA), full implementation of the CBAs requires Sh16.57 billion. This includes Sh13.81 billion in salary arrears and Sh2.76 billion in pension liabilities.
The government has already released Sh8.8 billion, leaving an unpaid balance of Sh7.77 billion to complete the agreement.
The CBAs were signed in October 2019 and backed by an initial funding of Sh8.8 billion disbursed in three phases starting in July 2020. However, implementation was delayed after disagreements arose over the payment model, prompting legal battles between the unions, universities, and the Education Ministry.
In 2021, the ELRC ruled that universities should adopt the diagonal approach, but the Education Ministry appealed the decision. The case dragged on until March 2025, when the Court of Appeal upheld the earlier ruling, allowing implementation to proceed.
The stalemate led to growing frustration among staff, with UASU, KUSU, and KUDHEIHA issuing strike threats in September 2025, demanding the release of all arrears and compliance with court orders.
The audit outlines specific financial shortfalls for the 38 public universities and constituent colleges. The University of Nairobi has the highest pending balance at Sh1.41 billion, followed by Kenyatta University (Sh798 million), Moi University (Sh719 million), and JKUAT (Sh645 million). Other institutions with large deficits include Egerton (Sh467 million), Maseno (Sh301 million), and the Technical University of Kenya (Sh377 million).
Union officials have welcomed the audit results, saying they confirm their repeated claims that staff were underpaid.
“This report confirms what we have said all along, that university staff were shortchanged through flawed calculations. The arrears must now be paid in full,” said UASU Secretary-General Constantine Wasonga.
The report recommends urgent talks between the Ministry of Education, SRC, and university councils to reconcile figures and find resources to settle the Sh7.7 billion balance.
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