The National Treasury has approved a Sh7.76 billion payout plan to settle arrears owed to university staff under the 2017–2021 Collective Bargaining Agreements (CBAs), signaling a breakthrough in resolving the prolonged pay dispute that has disrupted learning in public universities.
In a letter to Higher Education Principal Secretary Beatrice Inyangala, Treasury Cabinet Secretary John Mbadi confirmed concurrence with the Ministry of Education’s proposal to clear the arrears in three instalments spread across three financial years. The phased payments will see the government release Sh2.16 billion in the 2025–26 fiscal year, followed by Sh2.80 billion each in 2026–27 and 2027–28.
Mbadi said the decision followed consultations with the Salaries and Remuneration Commission (SRC) and recognized the immense pressure from university unions demanding full implementation of the CBA. The first tranche will be funded from an already approved supplementary allocation of Sh23.6 billion to the Ministry of Education.
“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,” Mbadi stated.
Public universities have been crippled by repeated strikes and go-slows as academic and non-academic staff protested delays in salary adjustments and arrears payments. The strike that began on September 17, 2025, saw the University Academic Staff Union (UASU) and allied unions demand the release of Sh2.73 billion from Phase Two of the 2021–2025 CBA, Sh7.9 billion outstanding from the 2017–2021 CBA, and initiation of negotiations for the 2025–2029 CBA.
While the Treasury’s approval marks a positive step toward restoring stability, stakeholders emphasize the need for long-term reforms to ensure the financial sustainability of public universities, many of which continue to struggle with deficits and dwindling revenue streams.
