Treasury in a tight budget spot as teachers win 60pc pay rise

Politics and policy

Knut secretary-general Wilson Sossion (centre), chairman Mudzo Nzili (right) and national treasurer Albanus Mutisya celebrate outside a Nairobi court on June 30, 2015. PHOTO | PAUL WAWERU 

By SANDRA CHAO-BLASTO, schao@ke.nationmedia.com

In Summary

• The High Court has awarded teachers pay increments of between 50-60 per cent, payable in four years beginning 2013.
• This means the Treasury must raise up to Sh50 billion to cover the two-year arrears as well as this year’s pay rise.
• The teachers’ wage bill, inclusive of allowances, currently stands at about Sh161.1 billion.

The Treasury was Tuesday left with a gaping Sh50 billion budget hole after the High Court awarded teachers a 60 per cent pay increase payable over a period of four years.

Employment and Labour Relations Court Judge Nduma Nderi awarded teachers pay increments of between 50-60 per cent, payable in four years beginning 2013.

Teachers’ basic pay wage bill currently stands at Sh119 billion per annum, meaning the Treasury must raise up to Sh50 billion to cover the two-year arrears as well as this year’s pay rise.

The deal forms the basis of a new collective bargaining agreement between the tutors and their employer, the Teachers’ Service Commission (TSC).

The teachers’ wage bill, inclusive of allowances, currently stands at about Sh161.1 billion.

Under the agreement, the lowest paid teacher will get an annual increment of 15 per cent while the highest paid teacher will get an annual 12.5 per cent increase.

Kenya National Union of Teachers (Knut) and the Kenya Union of Post-Primary Education Teachers (Kuppet) have since January been engaged in a court battle with the TSC and the Sarah Serem- led Salaries and Remuneration Commission (SRC) over their pay.

In addition to the court award, the allowances that TSC gave the tutors and which come into effect today (July 1) are also being considered as part of the new collective bargaining agreement.

“It is the hope of this court that this judgment will bring an end to the arbitrary remunerations of teachers and the anxiety of parents brought about by annual strikes,” Justice Nderi said.

Knut and Kuppet had filed a memorandum with the court seeking a 300 per cent pay increase but Justice Nderi said in his ruling that the demand would increase teachers’ basic pay wage bill from Sh119 billion to Sh360 billion.

The 300 per cent pay increase demand would have resulted in Sh118 billion for house allowances, Sh36 billion for leave allowances and Sh72 billion for responsibility allowance taking the tutors’ cumulative wage bill to Sh725 billion.

The 280,000 tutors currently account for 38 per cent of Kenya’s Sh418 billion public wage bill. Knut and Kuppet want the lowest-paid teacher to earn a basic salary of Sh58,863 instead of the current Sh16,692 while the highest paid teacher should go home with Sh321,705 up from the current Sh138,501.

On Tuesday’s court award was based on a working document that the teachers’ employer had prepared on September 9, 2014 as the tutors prepared for a strike over their pay.

READ: No basic pay increase for teachers, Uhuru says

TSC said it had recommended a basic pay increase of between 50 and 60 per cent basic pay increase to reduce the disparity between the highest paid and the lowest paid teacher, but not as a counter offer to the proposal the unions had made