Kenyan teachers are grappling with a severe financial squeeze as rising salary deductions drastically slash their take-home pay, fueling widespread frustration and discontent. A key point of contention is the Social Health Authority (SHA) deduction, introduced in October 2024, which mandates a 2.75% contribution from gross salaries with no cap, replacing the previous National Health Insurance Fund (NHIF) system. Teachers argue that the benefits do not justify the steep increase in costs, particularly when combined with other deductions, including pension contributions, the housing levy, and higher Pay As You Earn (PAYE) taxes. A teacher in Job Group C3, for instance, now takes home as little as Ksh23,936 from a gross salary of Ksh81,584 after deductions—an alarming reduction that makes affording basic necessities increasingly difficult. These financial strains have pushed teachers into the streets, with protests and strikes becoming more frequent as they demand relief from what they perceive as excessive and unfair financial burdens. Adding to their woes, a Ksh27 billion funding shortfall in the education sector has sparked fears of salary delays, compounding the already precarious situation.

The financial crisis has also extended into the healthcare sector, where teachers have been hit by severe restrictions imposed by their insurance provider, Minet. In February 2025, teachers from six North Rift counties staged a two-week strike to protest the limitations placed on their access to medical care. Many were barred from seeking treatment outside designated Level 4 and Level 5 hospitals, leading to overcrowding and reduced quality of healthcare. The Kenya National Union of Teachers (KNUT) and the Kenya Union of Post-Primary Education Teachers (KUPPET) issued a 24-hour ultimatum to the Teachers Service Commission (TSC) to address these grievances. Though the strike was called off after negotiations, many teachers remain skeptical about whether lasting solutions will be implemented. Meanwhile, teachers are still reeling from agency fee deductions imposed by the TSC in August 2024, which affected non-unionized primary school teachers, further exacerbating tensions between educators and the government. These financial deductions, coupled with a rising cost of living, have eroded the real value of teacher salaries over the years, even though Kenyan teachers remain among the best paid in East Africa. However, with over 50% of teachers concentrated in lower job groups earning between Ksh16,692 and Ksh29,918, concerns about career stagnation and wage disparity persist.

The government argues that these deductions are necessary to fund critical services and national development programs, yet teachers’ unions have fiercely opposed the lack of consultation and transparency in their implementation. Strikes and protests have become a common feature in the education sector, with KUPPET and KNUT repeatedly demanding better wages, improved working conditions, and a review of the 2021-2025 Collective Bargaining Agreement (CBA). The revised deductions system—implemented in phases since 2023—has seen the introduction of new NSSF rates, a 1.5% housing levy, and the removal of tax reliefs, further squeezing teachers’ earnings. The mounting dissatisfaction highlights a deeper structural issue: the delicate balance between revenue generation and employee welfare. Possible solutions include policy reforms to ease the tax burden on lower-income earners, transparent negotiations between the government and teachers’ unions, and alternative funding mechanisms such as public-private partnerships. As Kenya navigates this crisis, the outcome of these discussions will be critical in determining the future of the country’s education sector and the financial well-being of its teachers.

References:

The Standard Teachers lament over shrinking payslips as SHA deductions begin

Kenyans.co.ke Teachers Threaten Strike in 6 North Rift Counties Over Insurance

Business Daily Payslip deductions set to add burden on struggling Kenyan employees

Kenyans.co.ke Employed Kenyans Face Further Salary Decrease as SHA Deductions Take Effect

Nation Kenyan teachers not that badly paid, data shows

Business Daily Hospitals turn away teachers, police over unpaid claims