The Teachers Service Commission (TSC) is facing serious questions over delayed pensions, flawed teacher transfer systems, incomplete projects, and weak land documentation processes, according to a new report by Auditor General Nancy Gathungu.

The audit for the financial year ending June 2024 shows that beyond overpaying teachers by over Sh433 million, the commission has continued to struggle with systemic inefficiencies in several key areas of its operations.

One of the most critical is the backlog in pension processing.

Out of 14,823 pension cases handled by TSC, 5,842 files were still pending as of June 30, 2024, while only 8,981 had been processed and forwarded to the National Treasury.

A further detailed review of 305 retirees’ files showed that 285 (93 percent) had been finalised and submitted to the Treasury, while 20 cases were still incomplete due to missing documents or unfinished processing.

“In the circumstances, delays in processing the pensioners’ files impact negatively on the timely release of pensioners’ dues,” the report warns.

Flawed Teacher Transfer System

The Auditor General also took issue with the TSC’s handling of teacher transfers. The commission's senior management failed to provide adequate details on the number of pending and approved transfer requests.

While teachers are allowed to initiate transfers that are later reviewed by a committee, the audit found the process to be poorly coordinated between departments.

The report points to weak integration between the application process and the department responsible for processing and implementing transfers, which has led to unnecessary delays. The TSC was also faulted for not providing sufficient evidence of efforts made to improve the system or address its current inefficiencies.

Stalled Construction Projects

Two TSC construction projects—county offices in Machakos and Kilifi—were also flagged for major delays.

The contracts for these projects were awarded on July 13, 2022 (Machakos) and June 28, 2022 (Kilifi), at a cost of Sh57.6 million and Sh64.9 million respectively. Both were expected to be completed within 60 weeks.

However, the projects did not meet their original deadlines of September 5, 2023 (Machakos) and August 21, 2023 (Kilifi). Although the completion dates were extended to May 8, 2024, and May 1, 2024, progress remained slow. As of June 26, 2024, the Machakos office was 80 percent complete, while the Kilifi project had reached 86 percent.

Despite the delays, the report noted there was no evidence that further contract extensions were granted to cover the unfinished work. The validity of performance bonds for both projects could also not be confirmed, as the relevant contract files were missing.

“Delays in project completion could lead to escalation of costs while value for money has not been realised from the investment in the construction of the two county offices,” the report says.

Land Ownership Gaps

The audit also raises alarm over the commission’s land documentation. The TSC owns eight parcels of land across Bomet, Kiambu, Kitui, Nanyuki, Kwale, Kilifi, Tana River, and Machakos, collectively valued at Sh1 billion. These parcels were donated by county governments, but the commission does not hold title deeds for any of them—only allotment letters.

“Rightful ownership to land in absence of title deeds could not be confirmed while they are susceptible to encroachment,” the report notes.

These operational failures, according to the Auditor General, highlight weak internal systems and poor oversight across critical TSC functions—from managing staff welfare to protecting public assets and ensuring efficient service delivery.