Pressure is mounting on employers who have allegedly failed to submit mandatory training levies to the National Industrial Training Authority (NITA), with MPs demanding immediate legal action.
A National Assembly Public Investments Committee report reveals Ksh194 million in uncollected training levies, with no documented legal proceedings against those responsible.
MPs criticized NITA officials during a Thursday, April 30 meeting for failing to enforce compliance with legal requirements for levy payment and penalties.
The NITA levy constitutes a statutory obligation under the Industrial Training Act, mandating all Kenyan employers to contribute to skills development and workforce training programs.
All employers must register with NITA and calculate their levy based on employee count, settling payments through NITA’s systems or the Kenya Revenue Authority’s Unified Payroll Returns platform.
Committee Chairperson Emmanuel Wangwe questioned why legal guidelines have not been enforced despite their long-standing existence.
“The Kenyan Constitution has been active since August 27, 2010. You had ample opportunity to pursue legal action. Has this been done?” Wangwe challenged.
Parliamentarians also expressed concern about inadequate debt collection processes, noting that some employers utilize NITA services without fulfilling their levy obligations.
“How can you offer services while neglecting payment follow-through? This casts serious doubts on NITA’s accountability,” stated Ndhiwa MP Peter Owino.
The Committee additionally requested documentation regarding the engagement of Collection Africa Limited, a private entity tasked with recovering outstanding government levies.
NITA cited procedural difficulties, particularly involving the requirement for inspectors in legal proceedings.
Nevertheless, MPs insisted that NITA must enhance enforcement measures to ensure employer compliance, warning that levy collection failures jeopardize national skills development initiatives.