If the State’s recommendations to broaden the development of labor market skills are passed, employers who offer internships for students at technical and vocational institutions will receive tax rebates equal to 50% of salaries.
The government-backed Finance Bill, 2021, aims to give tax benefits to commercial companies that provide internship and training opportunities for Kenyan youth at Technical and Vocational Education and Training (TVET) schools.
This tax credit is now available solely to firms who hire university graduates as apprentices.
Since 2016, firms that hire at least 10 university graduates for 6-12 months and comply with the National Industrial Training Authority (NITA) standards have been entitled to a tax credit equal to 50% of salary paid.
“By extending this to include graduates of technical/vocational education programs, the government is recognizing the importance of creating opportunities for not just university graduates, but also other institutions which train individuals to acquire skills for the job market.” Deloitte in an analysis.
There has been an increase in the number of students leaving secondary schools, as well as a decrease in university placement, particularly among students enrolled in self-sponsored programs.
Total enrolment in TVET institutions increased by 19.7% to 430,598 in 2019 from 359,852 the previous year, according to data.
Analysts, on the other hand, have encouraged the government to change direction to address the persistently poor acceptance of TVET courses. They say that to increase uptake, the Cabinet Secretary for the National Treasury should consider relaxing these strict requirements.