ODM seeks release of Sh17bn retired teachers' pay

The ODM on Wednesday notified Parliament of its intention to push the Treasury to release Sh17.6 billion for teachers who retired between 1997 and 2003.

Mr John Pesa (Migori) filed the notice in Parliament saying it was “sponsored by ODM” and it seeks to have the 31,082 teachers paid their dues following a court decision that made it obligatory for the government to ensure that they are paid.

Mr Pesa reiterated the urgency of the issue adding that Sh3.34 billion had been allocated in the budget and money risks being returned to the Treasury at the end of the current financial year were to the teachers' disadvantage.

“Mindful that the delay (in making the payments) has caused the parties untold pain and suffering, this House urges the government to pay retired teachers their dues without further delay,” said Mr Pesa, of the resolution that Parliament is set to debate, when the matter comes to the House next week.

The retired teachers were paid pensions based on the final salary they earned before retirement. They subsequently went to court to have the matter adjudicated since the 1997 salary agreement captured in the Legal Notice No.534 of 1997 had not been honoured by the Moi administration.

In 2003, the Kibaki administration negotiated another agreement with the teachers and it has been fully implemented. The court therefore entered judgment in the teachers’ favour.

But there was a legal setback when it came to paying the money this year. Under the new dispensation, any amounts of money must be authorised by the Controller of Budget.

The Controller of Budget, Ms Agnes Odhiambo, said she would not approve any withdrawal of this amount until she gets a legal opinion from the Attorney-General.

Unfortunately, for the teachers, during the canvassing of this court case, no mention was made of the Pensions Act which indicates that it may not have been canvassed when the court was giving this award.

According to Finance Minister Njeru Githae, as soon as this issue is sorted out, the money will be disbursed.

“The Teachers Service Commission and the Pensions Department, have already agreed on the modalities of processing payments which will commence as soon as the legal hitch is cleared and the Controller of Budget approves the withdrawal of funds from the Consolidated Fund,” said Mr Githae when the matter came to the floor of the House in late February.

Mr Githae said that the money had already been allocated and that it would be budgeted for in the next financial year at the rate of Sh3.6 billion every financial year, until all the dues are paid.