The Teachers Service Commission (TSC) has reversed the unexplained Ksh 108 PAYE deduction from June payslips and confirmed funds will be reinstated. This update clarifies payroll errors and sets the stage for the upcoming CBA salary implementation scheduled to take effect on July 1, 2026.
Key Takeaways
- Ksh 108 deduction reversed: TSC reinstated the amount after public outcry and media investigation.
- Scope: Over 300,000 teachers were affected, with unions estimating the total diversion at about Ksh 32.4 million for one month.
- CBA phase two starts July 2026: TSC secured Ksh 8.4 billion toward the Ksh 16 billion needed for the next pay phase.
- Payroll transparency matters: Unions demand clearer communication and prompt refunds for erroneous deductions.
Background: What happened with the Ksh 108 deduction
When June 2026 payslips were released, many teachers noticed a uniform increase in Pay As You Earn (PAYE) labelled as a tax adjustment. The change appeared without prior notice or any legislative reason. The issue gained national attention after an investigative report highlighted the cumulative financial impact. Unions and teachers pushed for an explanation and correction.
What the TSC reinstatement means for teachers
The reversal restores confidence in payroll integrity and returns the deducted funds to affected teachers. While Ksh 108 may seem small per individual, the aggregate impact was significant. The reinstatement shows that coordinated union action and media scrutiny can correct payroll errors quickly. Teachers should now check their June and July payslips to confirm the refund and updated PAYE entries.
CBA salary implementation in July 2026: key points
The second phase of the 2025–2029 Collective Bargaining Agreement (CBA) takes effect on July 1, 2026. The TSC has mobilised Ksh 8.4 billion toward phase two, which will deliver salary notches and improved basic pay for many job groups. The CBA salary implementation aims to raise take-home pay and improve teacher welfare following earlier negotiations.
Projected salary notches and examples
Not all job groups receive the same increases. Below are selected projected notches under the July implementation (representative figures):
- B5 T-Scale: Notch examples around KSh 28,620 to KSh 37,100.
- C1–C3 T-Scales: Progressive increases with mid-range notches moving from about KSh 35,336 up to KSh 66,233.
- D1–D4 T-Scales: Higher notches showing larger jumps, with D4 notches reaching above KSh 143,000 in upper steps.
Note: These figures represent key notches; full increments apply across multiple steps for most scales. Teachers should verify their precise scale and notch on official payslips once July payrolls are processed.
Payroll transparency: what to check on your payslip
- Confirm basic salary and notch level for your job group.
- Check PAYE and statutory deductions for any unexpected changes.
- Look for separate entries showing CBA adjustments or arrears for July.
- Keep screenshots or downloads of payslips for record-keeping and any dispute resolution.
How TSC can improve communication
Clear, proactive communication reduces panic and builds trust. Recommended measures include:
- Publish a clear payroll notice before any pay-cycle changes, explaining the reason and effect.
- Provide a detailed breakdown of CBA salary changes per job group and notch.
- Set up a fast-track query resolution channel for pay disputes and erroneous deductions.
- Share FAQs and sample payslips that show where CBA adjustments and PAYE entries appear.
Resources for teachers and professional preparation
Teachers preparing for new responsibilities or seeking classroom resources can access free materials and exam practice. Useful resources include:
- Free CBC exams and practice papers to support curriculum delivery and assessment planning.
- Free KCPE exams for primary-level revision and classroom use.
- Free KCSE revision exams for secondary-level exam preparation and learner support.
Next steps for teachers
After the CBA salary implementation begins, teachers should:
- Download and store June and July payslips.
- Confirm receipt of any refunded deductions and new notches.
- Raise queries promptly through the TSC channels if discrepancies persist.
- Use available teaching resources to strengthen professional practice during transition periods.
The reversal of the Ksh 108 deduction and the upcoming CBA salary implementation are reminders that payroll systems must be accurate and transparent. Teachers who stay informed and keep records will be best placed to confirm their entitlements and ensure smooth implementation of the July salary changes.
