The National Industrial Training Authority collected Sh195.5 million in
2016/17 year and Sh110.5 million in the current year. FILE PHOTO | NMG
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.”
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