Appearing before the Education Parliamentary Committee to address the ongoing university lecturers’ strike, Treasury Cabinet Secretary John Mbadi made an urgent appeal to the striking academic staff to accept the payment of their outstanding arrears in installments, citing the government’s severe fiscal constraints and a “tight budget.”

The Treasury CS candidly admitted that the government is currently cash-strapped and simply lacks the immediate capacity to disburse the entire KSh 7.9 billion owed to the universities’ academic and non-academic staff in a lump sum.

CS Mbadi explained that the Ministry of Education had initially sought and received approval from the Treasury to pay the owed amount in three installments, a proposal which was subsequently rejected by the two primary unions involved, the Universities Academic Staff Union (UASU) and the Kenya Universities Staff Union (KUSU).

Following this rejection, the government revised its offer to a two-installment plan: the first payment scheduled for the 2025/2026 financial year, and the second for the 2026/2027 financial year, a formula that was also rejected by the unions.

The Treasury CS emphasized that the Exchequer is compelled to commit only to a payment schedule that is realistically sustainable to maintain the nation’s economic stability.

Mbadi urged the lecturers to acknowledge the “realities of our current economic situation” and agree to an economically viable payment formula, highlighting that the nation’s financial health is only now improving after a near default on foreign debt obligations in the previous year.

He stressed the government’s responsibility to settle its dues while simultaneously keeping the entire economy afloat.

Supporting the Treasury’s position, Education Cabinet Secretary Julius Ogamba confirmed to the committee that the striking unions’ consistent refusal of the installment plans has forced the Ministry back to the drawing board.

CS Ogamba stated that the unions “insist on being paid the full amount at once, despite our explanation that the money has not been budgeted for and that remains the current position.” He further revealed a major dispute over the total payable amount: while the unions demand KSh 7.9 billion, the Salaries and Remuneration Commission (SRC) had only authenticated KSh 624 million as legitimate arrears, noting that KSh 200 million had already been disbursed, leaving the contested balance at approximately KSh 7.7 billion.

The Universities Academic Staff Union (UASU) remains resolute, with its Secretary General Constantine Wesonga previously affirming that lecturers will not abandon their strike until the full amount is settled in a single payment. Wesonga cited the government’s history of reneging on past agreements during previous strikes, declaring that the unions would not back down until the decade-long payment issue is fully resolved. Beyond the immediate payment of the KSh 7.9 billion forthwith, the UASU also demands that the 2025-2029 Collective Bargaining Agreement (CBA) must be negotiated, signed, registered, and fully implemented.