Audit reveals Sh7.7bn funding shortfall for universities CBA, declares SRC formula flawed

NAIROBI, Kenya, Oct 14 — A new audit has revealed that the government still owes university staff Sh7.8 billion from the implementation of the 2017–2021 Collective Bargaining Agreements (CBAs) contradicting the Salaries and Remuneration Commission’s (SRC) position that only Sh624 million remained unpaid.

An assessment by a technical verification committee of the Joint Negotiations Committee (JNC) with membership from public universities and unions, found that the SRC’s methodology was flawed.

It noted the SRC formula incorrectly summed up annual increments for staff over the CBA period, rather than applying the “diagonal method” mandated by the Employment and Labour Relations Court (ELRC).

“The SRC methodology was inconsistent with the diagonal method approved by the court and was therefore invalid,” the committee stated in its report signed on Monday, October 13, in Machakos.

“Consequently, the conclusion by SRC that Sh624 million is the only amount owed to universities and their staff is incorrect.”

The committee, comprising representatives from the Inter-Public Universities Councils Consultative Forum (IPUCCF), the Federation of Kenya Employers (FKE), and staff unions UASU, KUSU, and KUDHEIHA, established that the total financial requirement for full implementation of the CBAs amounted to Sh16.57 billion.

The sum includes Sh13.81 billion in salary arrears, and Sh2.76 billion in pension obligations.

The government has already disbursed Sh8.8 billion, leaving a balance of Sh7.77 billion yet to be paid.

Delayed implementation

The CBAs, signed on October 28, 2019, were initially funded with an Sh8.8 billion allocation, released in three tranches starting July 2020.

However, a legal dispute over the implementation model led to prolonged delays.

The ELRC ruled in January 2021 that the CBAs should be applied using the diagonal method, which incorporates both annual and negotiated increments.

The Ministry of Education appealed the decision, and the judgment was stayed until the Court of Appeal dismissed the case on March 28, 2025, reinstating the original ELRC ruling.

The delay prompted widespread unrest across universities, with UASU, KUSU, and KUDHEIHA issuing strike notices in September 2025, demanding full payment of arrears and compliance with the court’s judgment.

The audit details the financial requirements and disbursements for each of Kenya’s 38 public universities and constituent colleges.

The University of Nairobi leads with the largest outstanding balance of Sh1.41 billion, followed by Kenyatta University (Sh798 million), Moi University (Sh719 million), and Jomo Kenyatta University of Agriculture and Technology (Sh645 million).

Other major arrears include Egerton University (Sh467 million), Maseno University (Sh301 million), and Technical University of Kenya (Sh377 million).

‘Shortchanged’

Union officials welcomed the report’s findings, saying it vindicates their long-standing position that the SRC and Treasury had underfunded CBA implementation.

“This report confirms what we have said all along — that university staff were shortchanged through flawed calculations. The arrears must now be paid in full,” said UASU Secretary-General Constantine Wasonga, following the audit’s release.

The report recommends immediate reconciliation between the Ministry of Education, SRC, and public university councils to mobilize the Sh7.7 billion required for full CBA compliance.


KEY FINDINGS AT A GLANCE

ItemAmount (KSh)
Total financial requirement16.57 billion
Basic salary arrears13.81 billion
Pension (20%)2.76 billion
Government disbursed8.8 billion
Outstanding balance7.77 billion
SRC estimate (disputed)624 million

The technical verification committee comprised Dr. Aggrey Kitoo (Chairperson, representing the IPUCCF), Prof. Constantine Wasonga (Secretary-General, UASU) Charles Mukhwaya (Secretary-General, KUSU) and Albert Njeru (Secretary-General, KUDHEIHA).

Other members are Joseph Mberia (FKE Representative), Dr. Benson Okumu (Ministry of Education Representative), Dr. Miriam Mueni (Treasury Representative), Josphat Ngeno (Universities Fund) and Dr. Julius Otieno (Public Universities Councils’ Consultative Forum).

The committee also received technical assistance from officers seconded by the Commission for University Education (CUE) and the National Treasury.