The Teachers Service Commission (TSC) in Kenya has introduced vital reforms ensuring that teachers who resign or are dismissed retain their rightful terminal benefits, including pensions and gratuities. This update fosters financial security, transparency, and fairness for educators leaving public service.
Key Highlights
1. Pension Protection for Dismissed Teachers
Under the new 2025–2029 Collective Bargaining Agreement (CBA) between TSC and teacher unions—KNUT, KUPPET, and KUSNET—teachers dismissed from service (for any reason) will now retain their pension and gratuity benefits, provided they contributed to the pension scheme.
Previously, dismissal—especially on disciplinary grounds—meant forfeiture of pension entitlements under Section 6 of the Pensions Act.
2. Legal Mandates and Court Precedents
Legal provisions such as Section 6 and Regulation 181(2) of the Code of Regulations for Teachers previously allowed TSC to withhold benefits from dismissed teachers.However, court rulings have challenged this approach. For example:
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In a notable Employment & Labour Relations Court case (June 24, 2024), the court reinstated a dismissed teacher and ruled that denial of his pension was unconstitutional.
Unions have advocated that dismissal should not negate earned benefits. As Collins Oyuu of KNUT stated, "teacher's contribution should determine benefits—not the way they exit service."
3. Resignation Procedures and Entitlements
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Teachers resigning under permanent and pensionable terms must provide three months’ written notice,or pay one month’s basic salary in lieu.
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Resignation due to marriage may attract a marriage gratuity, calculated at 1/12 of a month’s pensionable emoluments per month of service, capped at one year’s emoluments.
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Notably, resignation—even under P&P terms—does not guarantee pension benefits.
4. Broader Exit Mechanisms
TSC recognizes multiple service exit modes: retirement (on reaching mandatory age or via medical grounds), resignation, dismissal, marriage, voluntary early retirement, retirement in public interest, transfers, and death.
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