The government has cleared the way for teachers’ salary increments to start appearing on July payslips as the Teachers Service Commission (TSC) implements Phase 2 of the 2025–2029 Collective Bargaining Agreement (CBA). With the Salaries and Remuneration Commission (SRC) regulations in place and Ksh 8.4 billion allocated in the 2026/27 budget, teachers should see upward adjustments to basic pay, housing allowance and commuter allowance this month.
Key Takeaways
- Phase 2 implementation: TSC moves to apply the second phase of the 2025–2029 CBA in July.
- Funding secured: Ksh 8.4 billion allocated specifically for teachers’ salary review; an additional Ksh 2 billion for broader public service pay adjustments.
- Allowances uplift: Significant increases expected to housing and commuter allowances for lower-paid civil servants.
- Phased approach: The CBA spans four phases with further adjustments due in July 2027 and July 2028.
Why these teachers’ salary increments matter
This round of salary adjustments is more than a routine increase. It is part of a structured plan to protect teachers from inflation, reward experience and qualifications, and harmonize pay across the public service. The changes are backed by the gazettement of the SRC (Remunerations and Benefits) Regulations 2026, which aims to balance fiscal discipline with fair compensation.
What teachers should expect on their July payslips
Teachers can expect increases in three main components:
- Basic salary: Incremental raises depending on job group, experience and qualifications.
- Housing allowance: Proposed boosts for low-earning civil servants (examples include a rise from Sh3,400 to Sh6,000 for some grades).
- Commuter allowance: Revisions intended to reduce the burden of transport costs, with projected increases for lower bands.
Across job groups, projected net increases range from Ksh 2,359 to Ksh 17,416, with the exact figures depending on your grade and salary notch.
Breakdown by job group
Revised ranges target parity and progression. Sample expected salary bands include:
- B5 (former Grade C1): Adjusted entry and ceiling points to provide immediate relief.
- C1–C3: Graduates and standard teachers see stepped increases reflecting qualifications and seniority.
- C3+ to D2: Senior masters, deputy principals and principals see higher ceilings acknowledging leadership roles.
How the increases are financed and phased
The national budget for 2026/27 earmarked Ksh 8.4 billion for Phase 2 of the teacher salary review as part of a larger Ksh 33 billion CBA negotiated with KNUT, KUPPET and KUSNET. The implementation is deliberately phased to ensure predictability:
- Phase 1: Completed (foundation adjustments).
- Phase 2: July 2026 rollout (current).
- Phase 3: Scheduled July 2027.
- Phase 4: Final adjustments in July 2028.
Wider public service harmonization and SRC role
The SRC’s remit includes harmonizing pay and allowances across the public sector. The President’s directive to increase gross pay, housing and commuter allowances for all public servants means teachers benefit from a broader policy shift, not only a sectoral raise. This alignment reduces disparities and aims to make public service compensation more competitive.
Practical impact for school management and teacher welfare
Higher and harmonized pay supports operational stability in several ways:
- Staff retention: Improved pay reduces turnover and the need for frequent recruitment cycles.
- Teacher morale: Professional recognition tends to increase commitment to mentorship, lesson planning and extracurricular programmes.
- Operational planning: Predictable phased payments allow school leaders to plan staffing and development activities with greater certainty.
- Reduced commuter strain: Uprated commuter allowances help teachers live closer to work or afford transport costs, improving punctuality and availability.
What teachers and school managers should do now
To prepare for the changes, consider these steps:
- Review current payroll and allowance records so the school finance team can reconcile adjustments quickly.
- Update HR files to reflect qualifications and years of service that affect pay bands.
- Use the phased timeline to forecast salary costs for the next two academic years.
- Communicate clearly with staff about expected timelines and how adjustments will appear on payslips.
Resources and further reading
Teachers implementing the revised curriculum or preparing learners for national exams may find these resources useful:
- CBC curriculum designs — use these to align teaching plans with updated pay-driven expectations for workload and performance.
- Free KCPE exams — practice materials for primary school planning and assessment.
- KCSE revision exams — resources for secondary teachers focusing on improved outcomes.
Looking ahead
The July payroll adjustments mark an important milestone in a multi-year process. If implemented as planned, the combined effect of SRC regulations, targeted budget allocations and phased CBA implementation should improve living standards for teachers and strengthen school management. Stay ready to update payroll records and to use additional allowances strategically to support teacher retention and learner outcomes.
Question for readers: What specific changes would you expect to see in your classroom or school after these salary adjustments take effect?
