Inside eight-year Sh13b recovery plan for TUK

From left: UASU Organising Secretary Onesmus Mutio, UASU Deputy Secretary General and UASU TUK Chair Jacob Musembi, and UASU TUK Chapter Secretary Fred Sawenja make their presentations on the welfare of Technical University of Kenya before the National Assembly's Committee on Education, in Nairobi, on March 19, 2025. [Elvis Ogina, Standard] The troubles at the Technical University of Kenya (TUK) will be cleared in eight years, Education Cabinet Secretary Julius Ogamba has said. The revelation is in a deal signed between Ministry of Education and university staff. It spells out how Sh12.9 billion will be pumped to revamp the collapsing institution. The agreement was signed on Monday, ending 54 days strike that paralysed learning in the university. The lecturers called off the strike on Monday after signing a return-to-work formula with the Ministry of Education, culminating in a presentation by three major unions to the National Assembly Committee on Education on Wednesday. Under the recovery plan, the university will receive Sh1.2 billion in the 2025/2026 financial year. In the 2026/2027 year, some Sh1 billion will be released and another Sh2 billion in the 2027/2028. Under the 2028/2029 the government will provide Sh2.5 billion, while in 2029/2030 some Sh2.1 billion will be released. Ogamba said another Sh2.1 billion will be released in the 2030/2031 financial year and a similar amount released in the 2031/32. The agreement, which comes after prolonged negotiations, provides a phased repayment schedule spanning eight financial years, addressing salary arrears, pension remittances, statutory deductions, and other financial obligations. University and Academic Staff Union Organising Secretary Onesmus Mutio, on Thursday evealed that the funds will be used to offset the outstanding debts at TUK. Part of the funds will be used to establish a new pension scheme for the university staff after the collapse of the previous pension plan in 2015. "The employer has written to the Retirement Benefit Authority via their letter dated February 24, 2025, requesting for authority to establish a new Staff Retirement Benefit Scheme for the staff of the three unions at TUK," Mutio said while appearing before the National Assembly Committee on Education. The outstanding debt will be settled gradually, starting with Sh145.9 million allocated in the current 2024/25 financial year. This amount will go towards net payroll support for the period between January and June 2025. In the next financial year, 2025/26, the university will disburse Sh1.2 billion, with Sh17.6 million allocated to programme accreditation and pending bills to Kenya Universities and Colleges Central Placement Service (KUCCPS) to boost student enrollment. Additionally, Sh500 million will go toward clearing part of the pension arrears, while Sh59 million will be used to settle union dues, including Sh43.9 million for UASU, Sh12 million for KUSU, and Sh3.1 million for Kudheiha. A further Sh43.7 million will cover outstanding National Social Security Fund and Staff Health Insurance Fund contributions, while Sh305.9 million is set aside for checkoff deductions owed to banks, Saccos, and insurance firms. The university will also allocate Sh208.6 million for salary arrears from the 2017-2021 Collective Bargaining Agreement (CBA) and Sh92.8 million for staff medical claims and part-time lecturers' payments. For the 2026/27 financial year, the university will allocate Sh1 billion, with Sh229.6 million covering staff gratuity claims, Sh552.4 million going toward 2017-2021 CBA salary arrears, and Sh217.9 million allocated to sessional and part-time staff claims.

Inside eight-year Sh13b recovery plan for TUK

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