Treasury approves phased settlement of lecturers’ Sh7.76 billion arrears
Under the plan, Sh2.16 billion will be paid out in the 2025-26 financial year. This will be followed by two equal instalments of Sh2.80 billion in 2026-27 and 2027-28.
Public university lecturers in Kenya are set to receive long-overdue payments after the National Treasury approved a plan to clear Sh7.76 billion in arrears owed under the 2017-21 Collective Bargaining Agreements (CBAs).
The decision comes as the 46-day lecturers' strike has disrupted teaching, research, and administrative operations across the country’s public universities.
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Treasury Cabinet Secretary John Mbadi, in a letter addressed to Higher Education Principal Secretary Beatrice Inyangala, confirmed the government’s agreement with a Ministry of Education proposal to settle the debts in three stages over the next three financial years.
The phased approach aims to balance fiscal responsibility with the urgent need to address the financial hardships faced by lecturers.
The approval follows recommendations from the Salaries and Remuneration Commission (SRC) and pressure from university unions, which had consistently demanded full and prompt implementation of the CBAs.
Lecturers highlighted that delayed payments had placed many staff members under financial strain, prompting industrial action that brought university operations to a near standstill.
Under the plan, Sh2.16 billion will be paid out in the 2025-26 financial year. This will be followed by two equal instalments of Sh2.80 billion in 2026-27 and 2027-28.
Treasury noted that the first payment will be covered by a supplementary allocation of Sh23.6 billion previously approved for the Ministry of Education.
Mbadi acknowledged the constraints posed by the current fiscal environment but emphasised the need to resolve the issue swiftly.
“We acknowledge the very tight fiscal framework in which we are operating and also note that the matter is significant and has resulted in near total disruption of operations and learning in all our public universities,” he wrote.
“From the foregoing, the National Treasury hereby concurs with the State Department for Higher Education on the proposed settlement,” the CS added.
The decision is expected to provide immediate relief to university staff and restore stability in public universities, allowing teaching and research activities to resume normally.
University unions have welcomed the move, describing it as a positive step toward ending months of uncertainty and financial stress among their members.
The phased settlement is seen as a compromise between the government’s financial limitations and the lecturers’ demands, signalling a renewed commitment to addressing long-standing staff welfare issues in Kenya’s higher education sector.
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