The Industrial Training Act, one of the oldest act provides for the training of persons in the industry. Under the Act, all employers are required to register with the Directorate of Industrial Training (DIT) and to pay industrial training levy currently at the rate of Sh50 per employee a month, established in 2007.
The DIT is a department under the Ministry of Labour managed through the council whose membership is drawn from employers, workers, the Government, and other public bodies. Employers are required by law to contribute to industrial training levy fund out of which they are reimbursed for costs incurred in training approved under the Act.
Industrial Training (Amendment) Bill, 2019 now seeks to have all employers pay a training levy of Ksh100 every month per employee to provide for a new establishment, powers, functions and the management of the National Industrial Training Authority (NITA), and for the control and regulation of industrial training in Kenya.
“An employer shall pay the training levy to the Commissioner-General at the time when an employee’s salary is payable and shall be remitted to the Commissioner-General not later than the fifth day of the month following the month in which the levy becomes due,” states the Bill sponsored by Kiambu Town MP Jude Njomo.
Employers are to remit the levy to the Kenya Revenue Authority (KRA) which will be responsible for the assessment and collection of training levies from employers which shall not be deducted from emoluments of an employee. Under the amendment, KRA has the Authority to apply provisions of the Income Tax Act in respect of the payment and recovery of the levies and penalties.