After the implementation of the 10% salary increase, teachers will grinne at the bank
After the implementation of the 10% salary increase, teachers will grinne at the bank
The Teachers Service Commission (TSC) may now pay teachers’ salaries for the month of July without deducting the 1.5% housing fund deduction that was required by the 2023 Finance Act.
This is in response to the Court of Appeal’s yesterday ruling that an injunction suspending the statute should not be overturned. The Treasury has appeared before the Court of Appeal in an effort to implement the contentious Finance Act.
The three-judge panel will rule on the argument made by Treasury Cabinet Secretary Njuguna Ndung’u that the Act’s suspension was affecting government operations on July 28.
Prof. Ndung’u filed an appeal through Attorney General Justin Muturi, asserting that the government will probably lose close to Sh211 billion this fiscal year, making it challenging for the Kenya Kwanza administration to implement the 2023–24 budget as planned.
He continued by saying that some government programs needed to be delayed.
“The Kenyan government needs borrow money to fill the shortfall in order to operate. Because there are no saving provisions in the Finance Act 2023, the repealed sections of the Finance Act 2022 have the impact of hindering tax collection and causing service interruptions for already budgeted income, according to Prof. Ndung’u in an affidavit.
After the implementation of the 10% salary increase, teachers will grinne at the bank.
High Court Judge Mugure Thande ordered the Treasury to stop executing the Act on June 30 after stating that Kenyans would be charged illegal taxes if the petitions against the Act are successful.
On July 10, the court denied the request to lift the suspension and issued an order referring the case to Chief Justice Martha Koome for the purpose of appointing a bench to consider the Act-challenge petitions.
Justice Koome has already selected the judges to hear the cases from the High Court: David Majanja, Christine Meoli, and Lawrence Mugambi.
Before Justices Mohamed Warsame, Kathurima M’Inoti, and Hellen Omondi, former attorney general Githu Muigai, who is leading a team selected by Mr. Muturi, argued that the suspension will prohibit the government from meeting its financial responsibilities and using its executive authority.
Teachers’ paychecks for July will include a 7% raise over their base wage. Yesterday, TSC stopped operating as a result of the Court’s ruling.
The National Treasury disbursed a total of sh. 9.1 billion to the TSC in order to carry out the July payrise plan for the more than 350,000 teachers and secretariat staff members on the pnp payroll.
According to President William Ruto, the 7% to 10% salary raise for teachers and civil servants is meant to shield public employees from the challenging economic climate.
“I am aware that the SRC has suggested increasing the compensation for numerous categories of public employees, including officials. Ruto announced this at the KICC launch of the new e-citizen platform. “So, we have decided that starting tomorrow, the pay of our teachers, police officers, military personnel, and government employees will be increased by 7 to 10%.”
After the implementation of the 10% salary increase, teachers will grinne at the bank
