Retired teachers who have for two decades been battling the government for their pension now have every reason to smile.
The National Treasury has finally released Sh16.08 billion to 22, 022 retired teachers in delayed pension after 20 years.
On Thursday, National Treasury Cabinet Secretary Njuguna Ndung’u confirmed that the amount disbursed covers the period between 1998 and 2003.
The CS said the ministry had received revised claims affecting 23,487 retired teachers from the Teachers Service Commission (TSC).
He was appearing before the Finance Committee of the National Assembly over the 2023/24 financial year budget.
The remaining number of 1,465 claims, Ndung'u said are in the pipeline for payment as they are being processed by the Treasury.
The retired teachers were first awarded enhanced pension payments by the High Court in Nakuru on October 28, 2008.
However, the government moved to the Court of Appeal but lost the appeal on November 2010.
The Supreme Court also rejected another appeal by the government in 2013.
In 2014, the Attorney-General filed another application at the Supreme Court seeking a review of the Court of Appeal decision.
In a December 9, 2015 ruling, the Supreme Court declined the application.
This left the government with no option but to pay up the accrued pension arrears for the retired teachers.
On Thursday the CS told MPs that the remaining 1,465 claims are in the pipeline for payment as they are being processed by the Treasury.
The affected retirees were teachers who did not benefit from the government's salary increase after a 1997 deal with trade unions.
They retired after benefiting from one of the five phases due to a cash crunch that hit the then-Daniel Arap Moi government.
Knut had entered into a payment agreement with the government in 1997 through Legal Notice 534 of 1997.
The salary award was to be paid in five phases over a period of five years with the last phase in 2001.
Philip Too, one of the retired teachers, petitioned the Senate over the outstanding claims for teachers who retired between 1997 and 2007.
He complained that the TSC was yet to pay the retirees, close to 20 years after retirement.
Two weeks ago, TSC said the Treasury had delayed the release of the funds despite the commission processing all the documents.
The government implemented only the first phase in 1997.
In 2003, the teachers and the government renegotiated and signed a new deal to have the government pay the arrears over 10 years starting in 2003.
But, later that year, the two parties agreed to reduce the 10 phases to six, then later five in a 2007 agreement, implemented within a period of six years.
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