- TSC has received Sh33.57 billion in recurrent exchequer funding from the National Treasury in July 2026.
- The commission has continued to face an estimated Sh36.3 billion funding gap against its total financial requirement of Sh460.63 billion.
- The Treasury has released Sh21.4 billion in equitable-share allocations to Kenya’s 47 counties, with Nairobi receiving the largest share.
The Teachers Service Commission (TSC) received Sh33.57 billion from the National Treasury in July, the opening month of the 2026/27 financial year, making it one of the largest recipients of recurrent government funding released during the month.
Treasury records show TSC received exactly Sh33,571,866,660.80 in recurrent exchequer funding by July 31, 2026, placing the commission ahead of several other major government institutions. The State Department for Basic Education received Sh23.55 billion, while the Ministry of Defence received Sh19.12 billion. The State Department for Higher Education and Research received Sh17.76 billion, followed by the National Police Service with Sh9.57 billion.
Other allocations included Sh5.65 billion for the State Department for Internal Security and National Administration, Sh5.36 billion for the National Intelligence Service and Sh4.97 billion for the State Department for Medical Services.
Despite the July disbursement, TSC continues to face a funding deficit for the 2026/27 financial year. The Treasury’s Education Sector Report puts the commission’s total financial requirement at approximately Sh460.63 billion, comprising Sh458.72 billion for recurrent expenditure and Sh1.91 billion for development expenditure. The approved allocation stands at approximately Sh424.3 billion, creating an estimated Sh36.3 billion funding gap.
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Among the areas affected by the funding constraints is the payment of acting allowances to teachers temporarily performing administrative duties. TSC had estimated that approximately Sh2.2 billion would be required for acting allowances during the financial year.
The financial pressure is also evident in the planned transition of Junior Secondary School intern teachers to permanent and pensionable employment. TSC had sought approximately Sh7.2 billion to facilitate the transition of 20,000 JSS intern teachers, of which about Sh4.9 billion was provided, leaving an estimated Sh2.3 billion shortfall. Treasury’s July statement identifies the Sh33.57 billion as recurrent exchequer funding to TSC and does not provide a programme-by-programme breakdown showing how the allocation was spent or earmarked.
During July, Sh113.75 billion was released for public debt servicing under Consolidated Fund Services, with a further Sh7.83 billion allocated towards pensions and gratuities, bringing total Consolidated Fund Services allocations to Sh121.58 billion.
The government recorded total receipts of approximately Sh367.34 billion during July. Tax revenue contributed Sh195.30 billion, while domestic borrowing generated approximately Sh138.25 billion. Non-tax revenue accounted for about Sh4.57 billion, and other domestic financing contributed approximately Sh23.35 million. No receipts from external loans and grants were recorded in the July statement. The government closed the month with an exchequer balance of approximately Sh52.23 billion.
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County governments also received their first equitable-share allocation of the new financial year, with the National Treasury releasing approximately Sh21.4 billion to Kenya’s 47 counties during July. Nairobi received the largest allocation at approximately Sh1.11 billion, followed by Nakuru with Sh744.92 million and Turkana with Sh713.73 million. Lamu received the smallest allocation at approximately Sh199.39 million.
By Hillary Muhalya
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