Private sector shuns State’s plan to create pool of skilled graduates

Kenya’s quest to speed up creation of a large pool of skilled graduates has suffered a false start after the private sector shunned the mass training programme.

The government in June announced plans to give tax subsidies to companies that hire at least 10 fresh graduates for six to 12 months as interns to prepare them for the rigours of the labour market.

The plan aims to arm college leavers with practical industry skills and make them competitive in a country beset by high joblessness.

Fresh graduates are generally viewed as unemployable because they lack specialised market skills and experience to perform tasks.

The Federation of Kenya Employers, a lobby for private employers, Tuesday said companies were yet to sign up to the scheme. This is despite a move by Treasury secretary Henry Rotich to publish regulations for the scheme in June.

“It is yet to be picked up. The intention was good but it has somehow fallen through the cracks,” said FKE executive director Jacqueline Mugo.

“We sent out a memo prior to this year’s budget reading (June 8) and that was one of our issues; it’s yet to be picked up,” she added, signalling a fallout on some issues.

Treasury’s regulations state that companies that hire at least 10 fresh graduates as interns will receive a tax rebate equivalent to 50 per cent of the trainees’ salaries.

Under the arrangement, employers will have three years to claim the tax rebate.