The National Treasury has approved a phased settlement plan for the Sh7.76 billion arrears owed to university staff under the 2017-21 Collective Bargaining Agreements (CBAs), paving the way for an end to months of crippling industrial action in public universities.
In a letter addressed to Higher Education Principal Secretary Beatrice Inyangala, Treasury Cabinet Secretary John Mbadi confirmed concurrence with a proposal by the Ministry of Education to clear the arrears in three instalments over three financial years.
The approval, Mbadi said, follows guidance from the Salaries and Remuneration Commission (SRC) and sustained pressure from university unions who have been pushing for full implementation of the CBA.
The lectures cited long-standing delays and financial hardship among staff.
According to the schedule, the government will release Sh2.16 billion in the 2025-26 financial year, followed by Sh2.80 billion in 2026-27 and another Sh2.80 billion in 2027-28.
The Treasury said the first tranche will be funded from an already approved supplementary allocation of Sh23.6 billion to the Ministry of Education.
“We acknowledge the very tight fiscal framework in which we are operating and also note that the matter is significant and has resulted in near total disruption of operations and learning in all our public universities,” Mbadi stated in the communication.
“From the foregoing, the National Treasury hereby concurs with the State Department for Higher Education on the proposed settlement.”
Public universities have in recent months faced frequent strikes and go-slows by academic and non-academic staff, paralysing learning and university operations.
Union leaders have repeatedly alleged that the government reneged on negotiated agreements, while warning of escalating disruption if the arrears remained unsettled.
The Treasury’s green light is expected to ease tensions and restore stability in institutions.
The strike began on Wednesday, September 17, 2025, when the University Academic Staff Union (UASU) and allied unions downed tools across public universities.
The unions are having three demands, including the release of Sh2.73 billion from Phase Two of the 2021-2025 CBA, Sh7.9 billion outstanding from the 2017-2021 CBA, and negotiation and registration of the 2025-2029 CBA.
Even as the arrears issue moves toward resolution, stakeholders say long-term reforms remain urgent to safeguard the financial sustainability of public universities. Many institutions have posted significant deficits in recent years and rely heavily on the exchequer amid declining self-generated revenue.
University unions have yet to issue a communication regarding it.
Early indications point to a likely suspension of industrial actions as implementation begins.
The Treasury letter, copied to Education Cabinet Secretary Julius Ogamba, instructs the Ministry to proceed with necessary administrative steps for the first payout, signalling that funds could be released within the current financial cycle.
