Teachers to Smile to The Bank after TSC Implement 10% Salary increment

Teachers’ July wages may now be paid by the Teachers Service Commission (TSC) without the 1.5% housing fund deduction that was mandated under the 2023 Finance Act.

This is in response to the Court of Appeal’s decision yesterday to not overturn an injunction suspending the law. In an effort to enforce the disputed Finance Act, the Treasury had gone before the Court of Appeal.

The plea by Treasury Cabinet Secretary Njuguna Ndung’u, who claimed that the Act’s suspension was impairing government operations, will be decided on by the three-judge panel on July 28.

Through Attorney General Justin Muturi, Prof. Ndung’u filed an appeal, claiming that the government will likely lose almost Sh211 billion this fiscal year, making it difficult for the Kenya Kwanza administration to carry out the 2023–24 budget as planned.

He added that some government initiatives have to be put on hold.

“In order to function, the Kenyan government must borrow to close the gap. The repealed elements of the Finance Act 2022 have the effect of impairing revenue collection, resulting in service interruptions for already budgeted revenue because there are no saving provisions in the Finance Act, 2023, Prof. Ndung’u stated in an affidavit.

Teachers to Smile to The Bank after TSC Implement 10% Salary increment

After declaring that Kenyans would be subjected to illegal taxes in the event that the petitions against the Act are successful, High Court Judge Mugure Thande ordered the Treasury to suspend enforcing the Act on June 30.

On July 10, the court rejected to remove the suspension and ordered that the matter be sent to Chief Justice Martha Koome so that a bench could be appointed to hear the petitions challenging the Act.

Also Read: TSC Guidelines For Promotion and Salary Increment Of Teachers

Judges David Majanja, Christine Meoli, and Lawrence Mugambi of the High Court have already been chosen by Justice Koome to decide the cases.

Former Attorney General Githu Muigai, who is leading a team chosen by Mr. Muturi, made the argument before Justices Mohamed Warsame, Kathurima M’Inoti, and Hellen Omondi that the suspension will prevent the government from fulfilling its financial obligations and exercising its executive authority.

A 7% increase over their base pay will be given to teachers in their July paychecks. TSC ceased operations yesterday after the Court’s decision.

To implement the July payrise plan for the more than 350,000 teachers and secretariat employees on the pnp payroll, the National Treasury released a total of sh. 9.1 billion to the TSC.

President William Ruto stated that the 7% to 10% pay increase for teachers and civil personnel is intended to protect public employees from the difficult economic conditions.

“I am aware that the SRC has proposed raising the pay for many cadres of public employees, including government officials. Therefore, we have decided that from tomorrow, the pay of our teachers, police officers, military personnel, and government employees will be increased by 7 to 10%, stated Ruto at the KICC launch of the new e-citizen platform.