TSC gets Sh33.5b from Treasury as annual funding gap for teachers persists

Teachers have received a major boost at the start of the 2026/27 financial year after the National Treasury released Sh33.57 billion to the Teachers Service Commission (TSC) in July.

According to the Statement of Actual Revenues and Net Exchequer Issues as at July 31, 2026, the disbursement to TSC is part of the Sh367.34 billion released by the National Treasury in total revenue during the first month of the 2026/27 financial year.

In a Gazette notice dated August 14, 2026, the statement disbursement places the commission at the top of the institutions that received recurrent funding during the first month of the new financial year.

TSC received Sh33,571,866,660.80 in recurrent exchequer funds, ahead of the State Department for Basic Education, which received Sh23.55 billion.

The two education institutions together received about Sh57.12 billion in recurrent funding during July.

The figures provide the first picture of how the Treasury began financing government operations in the 2026/27 financial year, with total recurrent exchequer issues standing at Sh142.81 billion and more than Sh113 billion subsequently issued to service public debt.

The Sh33.57 billion issued to TSC was the largest recurrent disbursement recorded among government entities listed in the July statement.

Other major recipients included the Ministry of Defence, which received Sh19.12 billion, the State Department for Higher Education and Research with Sh17.76 billion, and the National Police Service with Sh9.57 billion.

The State Department for Internal Security and National Administration received Sh5.65 billion, while the National Intelligence Service received Sh5.36 billion.

In addition, the State Department for Medical Services was allocated Sh4.97 billion.

The recurrent category covers government expenditure during the financial year, with TSC's mandate including the management of Kenya's teaching service.

The July release comes amid a wider funding gap identified during the preparation of the 2026/27 budget.

TSC had sought substantially more funding for the financial year than the amount ultimately provided in the approved budget.

Treasury's Education Sector Report put the commission's total requirement at about Sh460.63 billion, comprising approximately Sh458.72 billion in recurrent requirements and Sh1.91 billion in capital expenditure.

The approved allocation was approximately Sh424.3 billion, leaving a gap of roughly Sh36.3 billion across the commission's requirements.

Among the requirements previously identified by TSC were funds for teachers serving in acting administrative positions.

The commission told the National Assembly's Education Committee that approximately Sh2.2 billion was required for acting allowances in the 2026/27 financial year, but the requirement was not included in the approved estimates.

Reporting at the time also indicated that thousands of teachers were serving in acting administrative roles.

Another identified funding gap concerns the planned transition of 20,000 Junior Secondary School intern teachers to permanent and pensionable terms.

TSC had sought about Sh7.2 billion for the transition, while approximately Sh4.9 billion was provided, leaving a reported Sh2.3 billion shortfall.

These requirements are part of the broader annual funding picture and should not be presented as items that were paid for by the Sh33.57 billion July release unless Treasury or TSC specifically identifies them as such.

While TSC received the largest recurrent allocation, the biggest individual expenditure item in the July statement was public debt servicing.

The Treasury issued Sh113.75 billion for public debt under Consolidated Fund Services during the month.

A further Sh7.83 billion went towards pensions and gratuities, bringing total Consolidated Fund Services issues to Sh121.58 billion.

The July debt-service figure was therefore more than three times the amount released to TSC during the month.

The comparison also shows the scale of the competing demands on government finances at the beginning of the financial year: Sh33.57 billion went to TSC for recurrent requirements, while Sh113.75 billion was issued for public debt servicing.

The disbursements came as the government recorded total receipts of Sh367.34 billion during July.

Tax revenue accounted for Sh195.30 billion, while domestic borrowing generated Sh138.25 billion.

On the other hand, non-tax revenue contributed Sh4.57 billion, while other domestic financing amounted to about Sh23.35 million.

There were no receipts from external loans and grants recorded in the July statement with the government ending July with a closing exchequer balance of Sh52.23 billion.

The Treasury also released Sh21.4 billion to the 47 county governments as their equitable share for July.

Nairobi received the largest amount at Sh1.11 billion, followed by Nakuru at Sh744.92 million and Turkana at Sh713.73 million. Lamu received the smallest amount at Sh199.39 million.