Every employer should fund industrial training, says agency
The industrial training agency wants a law review to enable it collect training levy from all employers.
The National Industrial Training Authority (Nita) says the changes in law will help in establishing a sustainable funding model to support training, research and regulation.
Paul Kosgei, the Nita director- general, told the National Assembly’s committee on Labour and Social Welfare to review the current Sh50 per month per employee levy to 0.25 per cent of contract value for building and construction firms and 0.5 per cent of wage bill on the remaining sectors.
“The proposed change is designed to adequately support training in industries, specifically skills in information technology sector, industrial manufacturing and informal sector (Jua Kali) which are critical to employment creation and industrialisation,” Mr Kosgei told the committee chaired by Bura MP Ali Wario.
The committee had invited Mr Kosgei to provide a report on the status of implementation of the Kenya Youth Employment Opportunities Project (KYEOP), management of the training levy, apprenticeship and Trade Test as well as performance of Nita centres.
He said the Sh50 levy has not been revised since 2007 and its review would cushion the authority from inflationary pressures. Nita collected Sh195.5 million in 2016/17 year and Sh110.5 million in the current year.
“The authority is yet to realise its potential in collection of training levy and adequately supporting the training needs, research and other regulatory activities due to low compliance by employers in terms of registration and levy payments.”