The allocation, passed by MPs on Thursday during consideration of the supplementary estimates, is expected to clear the outstanding dues.
The money is owed to teachers who participated in the administration of the Kenya Certificate of Secondary Education (KCSE) and Kenya Primary School Education Assessment (KPSEA) examinations.
The move came as a major relief to teachers who have for months complained about delays in payment despite successfully carrying out examination duties across the country.
The delay in settling the examination-related claims had sparked concern among teachers and their unions, with Kenya Union of Post Primary Education Teachers (Kuppet) threatening to rally teachers to down their tools and paralyse learning.
Speaking ahead of the passage of the mini-budget, Budget and Appropriations Committee chairperson Sam Atandi announced that Supplementary Estimates II of the 2025-26 financial year had set aside Sh1.5 billion to pay the teachers.
“In these supplementary estimates, we have Sh1.5 billion, which is going to be used to sort out the arrears of teachers who supported the invigilation process when our students were doing exams,” he stated.
National Treasury CS John Mbadi had also assured teachers the money would be released before the close of the current financial year.
Mbadi made the commitment during a meeting with members of Kuppet in Homa Bay on May 31.
Speaking to the Star on Thursday, Mbadi said the payment was key to averting a crisis in the education sector at a time when preparations for this year’s national examinations are ongoing.
“Teachers who marked the exam had not been paid Sh1.5 billion. After consulting with the President, we agreed that we should provide that money and pay them before the end of the financial year,” Mbadi told the Star on the phone.
“That debt will now be settled.”
Parliament’s approval of the Sh1.5 billion allocation is expected to pave the way for the Ministry of Education and examination agencies to begin processing the payments, with teachers likely to start receiving the money next week.
The move is expected to ease frustrations among affected teachers and restore confidence ahead of this year’s national examinations, in which tutors play a critical role in ensuring the credibility and integrity of the assessment process.
Last month, Kuppet instructed its members to boycott invigilation and marking duties for the 2026 national examinations.
The union’s National chairperson Omboko Milemba issued the directive on May 22, saying teachers would no longer work without pay.
“Teachers have rendered their services, and it is a violation of labour rights to keep them waiting for over a year for their pay,” he said.
“Until a clear consensus is reached and the money is in their accounts, there will be no invigilation or marking of this year’s exams.”
