The Government has said it is ready to pay thousands of retired teachers their salary and pension arrears totaling Sh17 billion.

The Teacher Service Commission (TSC) told a Nakuru Court the more than 52,000 teachers could receive their money before Christmas.

State counsel Cavin Anyuor told the court the Government is ready to release the money, a decision which has already been approved by the Controller of Budget.

He said the move followed an agreement on November 20 during a meeting attended by senior officers drawn from the Auditor General, Director of Pensions, TSC and the Attorney General offices.

According to the lawyer, the Government is only waiting for parliamentary approval before depositing the money in the accounts identified by the beneficiaries.

“The Controller of Budget has submitted a report on the proposed payment to the parliamentary Committee on Education to be tabled in the National Assembly,” he said.

Mr Anyuor told the court TSC was also negotiating with the Treasury to release the first installment of Sh6 billion salary arrears.

Following the new development, outgoing Nakuru judge, Anyara Emukule, set the matter for mention on December 18 to get an update on the Government’s progress in making the payment.

A six month contempt of court jail term against TSC Secretary Gabriel Lengoiboni was also deferred by the court.

The former teachers under the Retired Teachers of 1997 group moved to court in 2006 seeking unpaid lump sum salary increments and accrued pension from July 1997.