The July 2026 rollout of the second phase of the Collective Bargaining Agreement exposed the gap between headline figures and real take-home pay: the TSC salary increments produced small net gains for many teachers after statutory deductions and loan repayments.
Key Takeaways
- Net increases for some entry-level teachers were as low as Ksh 787 after PAYE, NSSF and other deductions.
- The TSC implemented Phase 2 under Circular 12/2026, effective 1 July 2026, covering active teachers (excluding interns).
- Allowances (house, commuter, hardship, baggage) remain payable but teachers say current rates do not match living costs.
- High traffic and outages on the T-Pay portal made payslip access difficult, increasing anxiety and calls for transparency.
TSC salary increments: what the July 2026 payslips show
Teachers began receiving July salaries after Phase 2 of the 2025–2029 CBA took effect on 1 July 2026. While gross salary tables were adjusted, many educators reported negligible net gains. Statutory deductions and loan repayments reduced practical benefit from the increases.
Net increment breakdown by grade
Reported net increases varied by job group. Examples gathered from payslip reports include:
- Primary Teacher II (B5 / T-Scale 5): net increments reported as low as Ksh 787.
- Secondary Teacher III / Primary Teacher I (C1 / T-Scale 6): net increases roughly Ksh 900–1,571.
- Secondary Teacher II / Lecturer II (C2 / T-Scale 7): net increases roughly Ksh 880–1,675.
- Secondary Teacher I / Lecturer I (C3 / T-Scale 8): some net gains up to Ksh 3,500 but many reported far less.
These net ranges show the practical effect of deductions and highlight why teachers are questioning the real value of the multi-billion-shilling adjustment.
What Circular 12/2026 covers
TSC Circular 12/2026 (dated 16 July 2026) set the operational rules for Phase 2:
- Applies to teachers in active service as of 1 July 2026; interns are excluded.
- Teachers keep existing incremental anniversary dates; those with anniversaries on 1 July 2026 first received the annual increment on the old scale before conversion.
- Grading and job titles were retained and mapped to updated T-Scales; allowances remain payable where applicable.
Allowances: still payable but under pressure
The circular confirms continued payment of legitimate allowances. The main allowance categories are:
- Baggage allowance — paid per kilometre according to grade.
- House allowance — set by clusters (Nairobi, major municipalities, minor/rural areas).
- Hardship allowance — for designated difficult or marginalized zones.
- Commuter allowance — fixed monthly transport subsidy.
- Annual leave allowance and Disability guide allowance.
Teachers and unions are demanding reviews of house and commuter allowances, arguing current cluster rates and commuter ceilings do not match urban rental and transport costs.
T-Pay portal issues and transparency concerns
The TSC T-Pay portal experienced heavy congestion as thousands of teachers tried to view payslips at once. Reported problems included server timeouts, long load times and error messages. These technical failures compounded frustration and limited verification of how deductions and conversions were applied.
How this compares with public service updates
Phase 2 adjustments by the Salaries and Remuneration Commission for civil servants were also implemented in July 2026. Public-sector grade tables and allowance matrices were updated. Teachers point out differences in house and commuter allowance calibrations and are asking for parity where appropriate.
What teachers and unions are asking for
- Immediate review of house allowance clusters to reflect current market rents in Nairobi and major towns.
- Increase in commuter allowances, especially for lower cadres facing rising fuel and transport costs.
- Improved payslip transparency and a resilient T-Pay portal to allow quick verification of net pay calculations.
- Clear timetable and targets ahead of Phase 3 (1 July 2027) to ensure meaningful gains.
Practical resources for teachers
Teachers looking for curriculum resources or exam practice while industrial discussions continue may find these free resources helpful:
- Free CBC exams and practice materials for primary classes and teacher planning.
- Free KCSE exam papers and revision exams for secondary teachers and learners.
- CBC curriculum designs and teaching guides to support classroom delivery.
In summary, the Phase 2 adjustments delivered headline increases but limited net benefit for many teachers. The primary focus now is on allowance realignment, payroll transparency, and ensuring future phases produce meaningful purchasing-power improvements.
