The Teachers Service Commission (TSC) is getting hit hard by public and legislative pressure after a recent auditor general’s report that basically uncovers a pretty serious financial wobble inside the institution.
This audit covers the financial year that ended on June 30, 2025, and it points to Sh12.3 billion in pending bills, plus a stubborn negative working capital situation that makes people wonder in a hurry how the commission can actually handle its day-to-day obligations, because it seems like it can’t.
As Auditor General Nancy Gathungu puts it, the commission is dealing with a Sh7.9 billion working capital shortfall. That shortfall is tied to current liabilities of Sh12.3 billion against assets worth only Sh4.4 billion, so the arithmetic alone looks alarming. With that precarious setup, oversight bodies have been issuing warnings about the commission’s liquidity and whether it is exercising fiscal discipline the right way.
But beyond the debt weight, the report also talks about bigger governance issues. The findings say TSC exceeded its recurrent expenditure budget by Sh4.48 billion, and the Auditor General describes that as a breach of the Public Finance Management Act.
On top of that, investigators noticed irregularities in payroll operations, including overpayments that add up to Sh236 million and also names of people on the payroll who could not be confirmed in the official teachers database. Those mismatches have brought back old worries about ghost workers, plus weak internal controls that should have caught these issues earlier.
There are also other operational frictions, for example, unpaid compensation claims under the Workers’ Injury Benefits Act (WIBA), and some of those claims even go back more than twenty years. The report further notes a lack of actuarial reports, which are supposed to support and explain insurance premium payments, and without them, the reasoning for those payments looks thin at best.
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