NAIROBI, Kenya — The National Treasury has approved a phased plan to settle Sh7.76 billion in salary arrears owed to public university staff under the 2017–2021 Collective Bargaining Agreements (CBAs), raising hopes of an end to months of industrial action that have paralysed higher education.
In a letter addressed 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 tranches over three financial years.
The move follows recommendations from the Salaries and Remuneration Commission (SRC) and sustained pressure from university staff unions.
According to the approved schedule, the government will disburse Sh2.16 billion in 2025–26, followed by Sh2.8 billion in 2026–27 and another Sh2.8 billion in 2027–28. The first instalment will be drawn from a Sh23.6 billion supplementary allocation already approved for 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.
“From the foregoing, the National Treasury hereby concurs with the State Department for Higher Education on the proposed settlement.”
The approval marks a major breakthrough in negotiations between the government and the University Academic Staff Union (UASU) and allied unions, who have accused the state of reneging on previous CBAs and ignoring staff welfare concerns.
The strike, which began on September 17, 2025, grounded learning and administration in dozens of institutions. Union leaders have been demanding the release of Sh2.73 billion from Phase Two of the 2021–2025 CBA, payment of the Sh7.9 billion balance from the 2017–2021 CBA, and initiation of talks for the 2025–2029 CBA.
The Treasury’s nod now sets the stage for implementation, with funds expected to be released within the current financial year once administrative procedures are completed. The letter, copied to Education Cabinet Secretary Julius Ogamba, directs the Ministry to begin immediate processing of the first tranche.
Although UASU had not issued an official response by press time, senior union officials indicated that a suspension of industrial action could follow once the first payments are confirmed.
Education analysts say the decision provides temporary relief but underscores deeper structural challenges facing Kenya’s public universities, many of which are grappling with mounting debts and overreliance on exchequer funding amid declining enrolments and reduced tuition revenues.
Stakeholders have urged the government to pair the arrears settlement with broader reforms on university funding, governance, and accountability to avert recurring financial crises.
“While the payment plan will ease tension, universities need a sustainable model that balances quality education and fiscal responsibility,” said a higher education policy expert who requested anonymity.
If fully implemented, the Treasury’s plan could restore stability in the public university sector, ending one of the most prolonged labour standoffs in recent years and allowing learning to resume across campuses nationwide.
