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{
"id": 1562652,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562652/?format=api",
"text_counter": 91,
"type": "speech",
"speaker_name": "Sen. Sifuna",
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"id": 13599,
"legal_name": "Sifuna Edwin Watenya",
"slug": "sifuna-edwin-watenya"
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"content": "Hon. Speaker, Sir, I beg to ask the Minister for Education the following Question. (1) What has the Government done to permanently address the root causes of the prolonged industrial action by lecturers at the Technical University of Kenya (TUK), which led to the closure of the university between 3rd February and 18th March, 2025? (2) Could the Government consider apportioning budgetary allocation to bail out the Technical University of Kenya from the prevailing financial crisis, as it did for Moi University, to forestall a collapse of the institution? (3) Could the Cabinet Secretary also outline the Government's strategy to generally address the challenges currently afflicting public universities, which include inadequate infrastructure, perennial strikes by the academic staff, and financial instability? I thank you. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1562653,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562653/?format=api",
"text_counter": 92,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " Hon. CS, you may proceed to respond. These answers have been circulated to the Hon. Senators. You need not read them verbatim. You may even elect to paraphrase, so that we save on time. You may proceed."
},
{
"id": 1562654,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562654/?format=api",
"text_counter": 93,
"type": "speech",
"speaker_name": "Hon. Julius Migos Ogamba",
"speaker_title": "The Cabinet Secretary for Education",
"speaker": null,
"content": " Thank you, Mr. Speaker, Sir. On this one, please allow me to read, because it includes figures that are specific to TUK. However, where it is a general response I shall paraphrase. Mr. Speaker, Sir, the award of Charter to the Technical University of Kenya as a full-fledged university was done on 15th January, 2013. Since that time, TUK has operated with chronic funding shortfalls. The monthly revenue is approximately Kshs207 million, including Kshs63 million that is given to them through capitation. This falls short of the monthly expenditure of Kshs314 million, which includes a wage bill of Kshs272 million, which has not been met, contributing to a debt of Kshs12.9 billion, inclusive of Collective Bargaining Agreement (CBA's) arrears of the cycle of 2017 to 2021 Mr. Speaker, Sir, because of these cash flow challenges, the university then resorted to paying net salary to all staff and was unable to pay or remit any statutory deductions, that is, pensions, payee and housing levy or any third-party deductions, that is, union dues, bank loans, Savings and Credit Cooperative Organizations (SACCOs), welfare, and insurance premiums. These challenges led to industrial action by staff of the university, as indicated in the Question. Mr. Speaker, Sir, we have annexed Table Two, that shows the particularization of the debt, including what is due to contractors, what is pending to pension, which is Kshs4.3 billion, third-party funds, statutory deductions, banks, SACCOs, insurance, CBA arrears, staff claims, all totaling to Kshs2.9 billion. To overcome these challenges, the Ministry of Education, in conjunction with TUK, came up with a recovery plan, which included the following measures- There was an agreement that the Government will give a direct support of Kshs145 million for the period of January, 2025 through to 30th June, 2025, to ensure that staff salaries are paid in gross and on time. We also agreed to offer conditional grants and enhanced capitation. The Ministry of Education will continue to channel conditional grants to bridge the budget gap with phased allocations over the next Financial Years from 2025/2026 to 2031/2032, to cover gross salaries and enable the timely remittance of the statutory deductions. We came up with a structured plan of sorting out that debt. TUK has also put in place a recovery strategy anchored on three areas. They are going to- (i) increase student enrollment; (ii) implement cost-cutting measures, including staff rightsizing and also organizational restructure; and, (iii) Ensure revenue enhancement, as indicated. Table Three there indicates the pending bills payment plan that runs from 2025 all the way to 2031. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1562655,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562655/?format=api",
"text_counter": 94,
"type": "speech",
"speaker_name": "Hon. Julius Migos Ogamba",
"speaker_title": "The Cabinet Secretary for Education",
"speaker": null,
"content": "Regarding the retirement benefits and the remittance of statutory and third-party deductions, TUK has undertaken to do the following- The TUK Staff Retirement Benefits Scheme, originally established in 2009 and registered on 12th November, 2013, was wound up by the court on 5th July, 2024. In the aftermath, TUK has engaged the Retirement Benefits Authority (RBA), the unions, that is University Academic Staff Union (UASU), Kenya University Union (KUSU) and Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIA), and the Receiver-Manager Liquidator with a key meeting held on 30th January, 2025 and a follow-up scheduled for 21st May, 2025 on the liquidation process. TUK has also undertaken to provide funds over the financial years 2025/2026 all the way to 2030 to settle outstanding liabilities of the wound-up TUK Staff Retirement Benefits Scheme in line with the overall recovery strategy. TUK has also requested the Retirement Benefits Authority to give the authority to establish a new Retirement Benefits Scheme since the old one was wound up. That would ensure that the future financial deductions have a place to be utilized and for members who retire to get their benefits. Mr. Speaker, Sir, to the second part of that Question, the Government is committed to bailing out the Technical University of Kenya. Mr. Speaker, Sir, the Government is committed to bailing out the TUK from the financial crisis. As I have indicated, it started from day one. The Government is committed to providing a net payroll support of Kshs145 million as I have indicated for the period from January 2025 to 30th June, 2025. Thereafter, the support will be anchored in the budget of financial year 2025/2026, all the way to financial year 2031/2032. This will cover gross salaries and enable the timely remittance of statutory reductions. Part three of that question is with regard to the university sub-sector. As we all know, it has faced various challenges in recent times, largely occasioned by financial difficulties leading to a number of them being declared technically insolvent. Indeed, as you would recall, the University's Academic Staff Union (UASU) and the Kenya University Staff Union (KUSU) issued strike notices in September and wanted to proceed to an actual strike in October. The main issues that were raised were non-implementation of their financial year 2020/2021 Collective Bargaining Agreements (CBA) and the delay in the conclusion of its full implementation during the financial year 2021/2025. Key issues included the demand for basic salary increments by between seven to 14 per cent, the harmonisation of allowances across universities and the provision of car and mortgage scheme loans. Following negotiations, the parties under the leadership of the Ministry of Education came up with a return-to-work formula, which was signed on the 26th September, 2024. The key terms and provisions of the return-to-work formula include the following: The salary adjustments, the last two years of the financial year 2021/2025 CBA cycle, effective 1st July, 2023 and 30th June, 2025. It was agreed that for Grades 13, 14 and 15, a seven per cent salary increment. For Grades 10, 11 and 12, it was a 10 per cent salary increment. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1562656,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562656/?format=api",
"text_counter": 95,
"type": "speech",
"speaker_name": "Hon. Julius Migos Ogamba",
"speaker_title": "The Cabinet Secretary for Education",
"speaker": null,
"content": "We also agreed on an annual automatic four per cent increment. We agreed that the revised salaries would be effective October 2024. Retirement age was also sorted out and transition provisions were provided to ensure that there is a smooth transition with the higher retirement ages until the expiry of the existing contracts. Harmonisation of allowances was also undertaken beginning October 2024, which resolved the issues that were raised relating to different allowances being given by different universities. On budget enhancement, we gave commitments to address budgetary allocations for staffing, promotions and related priorities. The Interpublic Universities Council (IPUCCF) and UASU were required to convene. They did that and they have undertaken the process of implementing the return- to-work formula. Mr. Speaker, Sir, in line with the return-to-work formula, the technical team composed of IPUCCF representatives and the three unions convened and worked out the figures that were required. They came up with a figure of Kshs9.7 billion. This figure was agreed to be spread out for the following financial years 2024/2025, 2025/2026 and 2026/2027 to ensure that they are taken care of. Therefore, it led to the signing of a CBA on the 23rd November, 2024. The payments for financial years 2021/2025 commenced in December, 2024, with the effective implementation date being 1st October, and we have adhered to it so far. To avert a recurrence of industrial disputes in the university sub-sector, the Government has committed to ensuring that negotiations for future CBAs commence at the start of each cycle to allow proper planning and budgeting. Since the implementation of CBAs is resource-sensitive, we are also creating a legal and policy framework to ensure that our public universities are financially sustainable. Part of this includes the introduction of the student-centred-funding model, which replaced the DUC under which universities were seriously underfunded. The ongoing law reform process is also geared towards ensuring that the governance frameworks in public universities are effective, efficient, transparent and accountable in the prudent use of university resources. We have also instructed our public universities to address staff issues as and when they arise instead of overlooking them until they assume crisis proportions. Overall, the measures to improve governance and sustainable financing at our public universities will also support the enhancement of infrastructure in our public universities. We have also encouraged universities to work on alternative resource mobilization initiatives in order to minimize reliance on the exchequer. I submit, Mr. Speaker, Sir."
},
{
"id": 1562657,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562657/?format=api",
"text_counter": 96,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " The hon. Senator for Nairobi City County, do you have any supplemental requests?"
},
{
"id": 1562658,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562658/?format=api",
"text_counter": 97,
"type": "speech",
"speaker_name": "Sen. Sifuna",
"speaker_title": "",
"speaker": {
"id": 13599,
"legal_name": "Sifuna Edwin Watenya",
"slug": "sifuna-edwin-watenya"
},
"content": "Mr. Speaker, Sir, I have one supplementary question, but before I ask it, I need some clarity on the answer that has been provided by the Cabinet Secretary. Hon. Cabinet Secretary, you have said that you are supplying a net payroll support of Kshs145 million. Knowing that the monthly wage bill for the institution is The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
},
{
"id": 1562659,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562659/?format=api",
"text_counter": 98,
"type": "speech",
"speaker_name": "Sen. Sifuna",
"speaker_title": "",
"speaker": {
"id": 13599,
"legal_name": "Sifuna Edwin Watenya",
"slug": "sifuna-edwin-watenya"
},
"content": "Kshs272 million per month. Can you clarify to me whether this Kshs145 million that you say is for the period January 2025 to 30th June, 2025 is a monthly support or for those three months? It would be a drop in the ocean when you compare it with the monthly wage bill. Secondly, there is a mention of conditional grants that you say will bridge the budget gap. Unfortunately, you have not provided any figures. Do you have a figure for the total amount of the conditional grant that the institution will be supported with? On the last clarification, there is suspicious language in the response on the recovery measures. I do not understand what you mean by staff right-sizing. This is the first time in my entire life that I have heard that word staff right-sizing. Are you saying you will sack some people? If that is what you are saying, can it come from you clearly on which cadre of staff are affected and in the numbers? After that, I will ask my supplementary question because those were just clarifications. Mr. Speaker, Sir, that language is confusing. What is right-sizing? Are you cutting people down to size?"
},
{
"id": 1562660,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562660/?format=api",
"text_counter": 99,
"type": "scene",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "(Laughter)"
},
{
"id": 1562661,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562661/?format=api",
"text_counter": 100,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " Proceed, Sen. Sifuna."
}
]
}