Federation of Kenya Employers (FKE) argues that majority of private firms have not adopted the State-backed internship programme, citing limited capacity to retain fresh graduates for at least six months.
The lobby argues that most companies in Kenya are MSMEs which have limited resources to afford wages and working space for 10 apprentices for between six and 10 months.
Fresh graduates from institutions of higher learning are usually left frustrated, fighting for limited job opportunities due to a lack of specialised market skills and experience to perform tasks.
Employers want the government to lower the requirement for hiring at least 10 graduate interns to qualify for a tax relief under a plan aimed at cutting growing joblessness amongst the youth.
Federation of Kenya Employers (FKE) argues that majority of private firms have not adopted the State-backed internship programme, citing limited capacity to retain fresh graduates for at least six months.
The lobby argues that most companies in Kenya are MSMEs which have limited resources to afford wages and working space for 10 apprentices for between six and 10 months.
The Treasury in January expanded the tax rebate, which is equivalent to half of the pay to the trainee employees, to include firms engaging graduates from technical and vocational institutions following changes in the Finance Act 2021.
The relief, which has been in place since 2016, previously applied to firms which hire apprentices from universities.
“Few employers have the ability to offer at least 10 internship opportunities for a minimum of six months each per year due to the associated costs on providing a working space and on the job training. This makes it hard for enterprises to meet the criteria to qualify for the tax rebate, especially small and medium enterprises,” FKE executive director Jacqueline Mugo said via email.
“A solution lies in reviewing the provision to lower the number of internship opportunities to below 10 interns which small and medium enterprises should offer in a year.”
Fresh graduates from institutions of higher learning are usually left frustrated, fighting for limited job opportunities due to a lack of specialised market skills and experience to perform tasks.
The economy has for decades now struggled to create decent jobs for the growing youthful graduates, a situation which worsened at the height of Coronavirus pandemic.
Annual economic data released by the Kenya National Bureau of Statistics, for example, shows the economy shed 187,300 formal jobs in the year ended June 2020, marking the first time since 2001 when some 18,300 salaried workers were struck off payrolls.
Further, an annual report by Public Service Commission’s (PSC) showed that 87 percent (5,560) out of the 42,132 who applied for internship opportunities in the public sector in the year ended June 2020 missed out due to budgetary constraints.
“There is the need to support the full recovery of the formal sector to retain and create jobs. This will require policy directives that support training and the infusion of technology at the workplace,” Ms Mugo said.
