Treasury nod sets stage for Sh7.76bn payout to university staff

Treasury nod sets stage for Sh7.76bn payout to university staff
Treasury CS John Mbadi during the IMF and World Bank Annual Meetings on October 14, 2025. PHOTO/TREASURY
In Summary

The payment arrangement follows advisory input from the Salaries and Remuneration Commission and weeks of pressure from university unions demanding that the government honour the negotiated terms. Staff had accused authorities of delaying obligations contained in the collective bargaining agreements, saying the situation had left many workers struggling financially.

A deal to settle long-pending salary arrears for staff in public universities has moved closer to reality after the National Treasury gave the green light to a staggered payment plan for the Sh7.76 billion owed under the 2017-21 collective agreements.

The approval signals an end to the labour unrest that has stalled learning and services across institutions for months as workers pressed for their dues.

Treasury Cabinet Secretary John Mbadi communicated the decision in a letter to Higher Education Principal Secretary Beatrice Inyangala.

He confirmed agreement with a request from the Education ministry to clear the arrears in three rounds spread across three budget cycles, bringing relief to lecturers and support staff who have endured years of waiting.

The payment arrangement follows advisory input from the Salaries and Remuneration Commission and weeks of pressure from university unions demanding that the government honour the negotiated terms.

Staff had accused authorities of delaying obligations contained in the collective bargaining agreements, saying the situation had left many workers struggling financially.

Under the funding plan, Sh2.16 billion will be disbursed in the 2025-26 year. The remaining amount will be split into two equal allocations of Sh2.80 billion each in the 2026-27 and 2027-28 financial years. The first payout will be drawn from a supplementary budget of Sh23.6 billion already approved for the education sector.

While acknowledging the country's strained public finances, Mbadi stressed the importance of resolving the crisis to restore smooth learning and operations across campuses.

“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 stated.

“From the foregoing, the National Treasury hereby concurs with the State Department for Higher Education on the proposed settlement.”

The stalemate had paralysed academic activities in public universities, with teaching and administrative functions heavily disrupted as staff picketed and slowed down services.

Lecturers and workers repeatedly pointed to rising living costs and loan pressures as they demanded timely payment of the agreed benefits.

Union leaders have recently engaged government officials calling for swift action to ease the burden on employees and safeguard education standards. With the payout now approved, attention turns to timely execution to ensure that the three-year timetable is followed without delay.

Restoration of normal operations is expected once disbursements begin, easing tensions that have gripped campuses and clearing the way for learning, research and student services to pick up again.

Join the Conversation

Enjoyed this story? Share it with a friend:

Latest Videos
MOST READ THIS MONTH

Stay Bold. Stay Informed.
Be the first to know about Kenya's breaking stories and exclusive updates. Tap 'Yes, Thanks' and never miss a moment of bold insights from Radio Generation Kenya.