Members of Parliament have accused the Teachers Service Commission (TSC) of mishandling hardship allowances for teachers, saying the agency has failed to fairly classify hardship areas, leaving thousands of teachers in limbo over their benefits.

In a session on Thursday, the legislators demanded an urgent review of the system, warning that the current arrangement undermines transparency and denies teachers their rightful compensation

The allowance, created to compensate public servants posted to regions with insecurity, poor infrastructure and lack of basic amenities, is provided under Regulation 91 of the Code of Regulations for Teachers and the 2025–2029 Collective Bargaining Agreement (CBA).

While TSC administers the funds, the State Department for Public Service and Human Capital Development determines which regions qualify as hardship areas, with the Salaries and Remuneration Commission (SRC) advising on rates.

MPs said this fragmented arrangement has led to contradictions that continue to frustrate teachers.

Isiolo Woman Representative Momina Bonaya pressed the commission to explain why Isiolo Municipality had not been upgraded into Cluster 3 for house allowance despite “clear eligibility” of schools there.

Acting TSC CEO Everleen Mitei, however, defended the agency, saying teachers in Isiolo already benefit from enhanced terms.

“Teachers in Isiolo municipality are now earning an enhanced house allowance under Cluster 3,” she said, adding that the terms will be maintained in the new CBA.

Legislators insisted the allowances system remains unfair. Githunguri MP Gathoni Wamuchomba accused the government of excluding Parliament and unions from talks on reclassification.

She pointed to a 2019 report that proposed splitting hardship areas into “extreme” and “moderate” categories, a move projected to save the government Sh6 billion.

“Why were teachers paraded at State House when the same government has denied them allowances?” she posed.

“Over 118,000 teachers in 35 counties are affected. The budget is allocated by Parliament, not the presidency. Teachers should not be misled into celebrating while their benefits are under threat.”

Her remarks highlighted a clash between political promises and institutional processes. President William Ruto has assured teachers that their allowances will not be reduced, but unions warn that the matter remains unsettled.

Kenya Union of Post-Primary Education Teachers (KUPPET) chairman Omboko Milemba defended the State House meeting, saying it was part of union efforts to protect teachers’ benefits.

“The teachers who went there were leaders and the hardship allowance was part of the memorandum we took there. Even the circular that was supposed to effect the reduction had already been shelved,” Milemba said.

He added that financing the CBA remains a pressing issue.

“The CBA was broken into two phases, costing Sh30 billion. Already, Sh8.6 billion has been spent, leaving Sh21.4 billion. Financing is a matter for Parliament, but the president has also been urging agencies to cost the agreements properly,” he said.

The debate centres on whether hardship allowances should remain uniform or be adjusted to reflect varying levels of hardship. Critics argue that teachers in Turkana face tougher conditions than those in Nyandarua, yet both groups receive the same stipend.

The Ministry of Public Service has since started a review of hardship areas, raising expectations of a “graduated model” of pay.

“Matters of hardship should not be politicised. They must be handled transparently, through unions and Parliament, not backroom deals,” Wamuchomba said.

Meanwhile, TSC announced that all teachers will be moved to a new medical insurance scheme under the Social Health Authority (SHA) beginning December 1, 2025, when the current contract with a private insurer ends.

In the new arrangement, teachers will join the Public Service Fund and access a premium SHA cover extending beyond the core package available to other public servants.

The cover includes outpatient and inpatient care, dental and optical services, annual checkups, ambulance and emergency air rescue, overseas treatment, group life and last expense benefits. The scheme will cater to the teacher, their spouse and up to six dependents.

The announcement followed a meeting between President Ruto and teachers’ representatives at State House, where medical cover featured prominently among grievances.

But teachers have rejected the plan, citing complaints by other civil servants about SHA’s inefficiency. Kenya National Union of Teachers (KNUT) Nakuru branch executive secretary Anthony Gioshe said the teaching fraternity will resist attempts to onboard them into the scheme.

“We have heard a story from the government that they want to move us into SHA. We have no problem with the Social Health Authority, but we are saying this, we will not go there,” Gioshe said.

He urged the government to provide teachers with an independent medical cover, noting the size of the workforce justifies it. He added that the current scheme is comprehensive, covering a teacher, their spouse and up to four children, while members access services using payroll numbers or biometric verification instead of physical cards.

Teachers also criticised the mandatory 2.75 per cent SHA deduction on gross income, arguing it amounts to double taxation when combined with their existing cover.