The month of July is typically a time of expectation for thousands of teachers across Kenya.
This year, that anticipation was heightened by the scheduled implementation of the second phase of the 2025–2029 Collective Bargaining Agreement (CBA).
However, as the Teachers Service Commission (TSC) closed its July payroll on July 15, 2026, many educators will be met with a sobering reality: the expected salary increments will not be reflected in their July payslips.
While this news may come as a disappointment, it is crucial to understand the broader fiscal context and the official timeline provided by the government.
The delay is not a cancellation, but rather a rescheduling of the rollout. The salary adjustments, representing the second phase of the CBA, will be paid in August 2026, fully inclusive of the July arrears.
The Fiscal Reality Behind the Delay
The decision to postpone the implementation in the July cycle stems from complex macroeconomic challenges.
Sources within the government indicate that revenue collection for the current fiscal period has fallen slightly short of projections.
Implementing various CBAs simultaneously across the entire public service requires significant liquidity, and the government has opted for a measured, strategic approach to ensure that these payments remain sustainable.
This administrative adjustment aligns with the broader governmental strategy regarding public sector remuneration.
The government is currently managing a delicate balance between fulfilling its contractual obligations to unions and maintaining the fiscal discipline required to keep the national economy stable amidst global and local inflationary pressures.
Alignment with Public Service Reforms
The delay in the teachers’ payroll changes coincides with a wider, government-wide directive concerning civil service pay.
Public Service Cabinet Secretary Geoffrey Ruku recently provided clarity on the timeline during a public engagement in Londiani, Kericho County.
CS Ruku officially announced that the planned salary increases for all civil servants—including teachers—will be fully effected starting August 1, 2026.
Emphasizing the administration’s commitment, the CS noted that this review, directed by President William Ruto, is comprehensive.
“President William Ruto had his government increase the allowance of all public servants in July this year. It will be gross pay, housing allowance, and commuter allowance,” CS Ruku stated, further clarifying that the logistical implementation across various state departments is being streamlined to take full effect in August.
Embracing the Government Human Resource Information System (GHRIS)
A critical component of this delay involves administrative house-cleaning. CS Ruku has directed all government institutions, including the TSC, to migrate their payroll operations fully to the Government Human Resource Information System (GHRIS).
This move is intended to achieve two main goals:
Eliminating Ghost Workers: By centralizing and digitizing the payroll, the government aims to ensure that public funds reach only legitimate, active employees.
Efficiency and Accuracy: Modernizing the system ensures that when the salary adjustments are made in August, the data is accurate, secure, and compliant with the new SRC guidelines.
With the Salaries and Remuneration Commission (SRC) having cleared all pending hurdles, the TSC is now fully empowered to execute the second phase of the 2025–2029 CBA in the upcoming August payroll, effectively backdating the benefits to July 1st.
The Legal and Financial Foundation of the 2025–2029 CBA
The path to these adjustments is not arbitrary; it is built on a solid legal and financial foundation.
The recent gazettement of the SRC (Remunerations and Benefits of State and other Public Officers) Regulations 2026 provides the necessary legal framework to harmonize pay across the public sector.
These regulations represent a landmark shift in how the government manages its wage bill.
By strengthening the governance of remuneration, the state ensures that it can maintain fiscal discipline while simultaneously providing equitable compensation to the workforce.
The Budgetary Allocation
The financial commitment is clearly defined in the 2026/2027 national budget, which has set aside Ksh 8.4 billion specifically for the second phase of the teachers’ salary review.
This allocation is part of the broader Sh33 billion CBA signed between the TSC and the three major teachers’ unions:
KNUT (Kenya National Union of Teachers)
KUPPET (Kenya Union of Post Primary Education Teachers)
KUSNET (Kenya Union of Special Needs Education Teachers)
This agreement is a result of extensive negotiations designed to cushion teachers against the rising cost of living.
The CBA outlines a structured, four-phase increment model, ranging from a 5% increase for the highest-paid cadres to 29.5% for the lowest-paid, ensuring that those in lower job groups receive a significant percentage boost.
Understanding the Broader Public Service Shift
The government’s decision to move the implementation to August is part of a universal shift in public service pay.
Beyond the Ksh 8.4 billion allocated specifically for teachers, the government has set aside an additional Ksh 2 billion for civil servant pay reforms.
The administration’s goal is to harmonize basic salaries and allowances across the board. For the lowest-earning civil servants, the projected changes are transformative:
Housing Allowance: Expected to rise from Sh3,400 to Sh6,000 (a near 100% increase).
Commuter Allowance: Projected to rise from Sh3,800 to Sh5,000.
Because the SRC is tasked with ensuring parity, teachers are direct beneficiaries of this policy movement.
By elevating these specific allowances—which represent the most immediate financial burden on a household—the government is providing a vital buffer against inflation.