Industry-led apprenticeship programmes can significantly improve business productivity while providing a practical solution to youth unemployment in Kenya, according to a new study on skills development.
The Return on Investment (ROI) Study on the PropelA Dual Apprenticeship Programme found that companies investing in workforce skills development record an average 30 per cent Return on Training Investment (ROTI), generate approximately Sh2 million in net value per company and recover their investment within three years.
The independent study, conducted by Orange & Teal on behalf of Swisscontact, revealed that nearly 87 per cent of the value created through apprenticeship programmes comes from increased apprentice productivity, demonstrating the economic benefits of investing in practical skills training.
The findings were unveiled during the PropelA Business Impact and Investment Insights Breakfast in Nairobi, bringing together government officials, private sector leaders, development partners and workforce development stakeholders to discuss strategies for addressing skills shortages and improving youth employment.
Swisscontact Kenya Country Director Sharon Mosin said the findings demonstrate that skills development should be viewed as an economic investment rather than merely a social intervention.
“Skills are economic infrastructure that drive productivity, competitiveness and growth. When businesses invest in skills, they are investing in their own future,” said Mosin.
She said stronger partnerships between industry and training institutions were necessary to address the mismatch between skills possessed by graduates and those required by employers.
The Kenya Association of Manufacturers (KAM) urged more employers to adopt demand-driven training models, saying such programmes have delivered measurable returns while opening employment opportunities for young people.
KAM Chief Executive Officer Tobias Alando said collaboration with Swisscontact through the PropelA programme has trained more than 1,500 young people, facilitated employment for over 1,260 graduates, supported eight industry-led curriculum reviews and equipped 710 youth with entrepreneurship and financial literacy skills.
Alando called for stronger collaboration among industry players, training institutions and government agencies while urging reforms to the National Industrial Training Authority (NITA) levy framework to encourage increased private sector participation in workforce development.
NITA Manager for Industrial Training Development Musa Opuk said the government had strengthened work-based learning approaches to address concerns raised by employers over graduates lacking adequate practical skills.
He explained that the dual apprenticeship model enables trainees to spend 70 per cent of their training period in industry and 30 per cent in learning institutions, allowing them to gain hands-on experience while pursuing recognised Level 5 and Level 6 qualifications under the Kenya National Qualifications Framework.
Opuk said more than 80 per cent of apprentices are absorbed into employment after completing their training, demonstrating the effectiveness of combining classroom instruction with workplace exposure.
He added that NITA is reviewing the industrial training levy framework to provide greater incentives for employers, including subsidised training opportunities and tax incentives for firms that support apprenticeship programmes.
The government is also introducing a graduate apprenticeship programme under which employers hiring graduate apprentices will benefit from tax deductions.
“Employers who pay wages to graduate apprentices will be eligible for a tax deduction of up to 50 per cent of the wages paid,” said Opuk.
He commended businesses that have embraced apprenticeship programmes, saying their investment in skills development was contributing to youth empowerment and economic growth.
Nicholas Komu, Director at Realtech Plumbers Ltd., said the company joined the PropelA Dual Apprenticeship Programme after identifying its potential to bridge the skills gap in the construction sector through a combination of classroom learning and workplace training.
Komu said the plumbing industry had experienced a shortage of skilled technicians due to declining enrolment in technical institutions and economic challenges experienced in previous decades, forcing many companies to recruit and train inexperienced workers internally.
“The plumbing industry had faced a shortage of skilled technicians for years due to low enrollment in technical institutions and an economic slowdown in the 1990s, forcing many firms to recruit and train inexperienced workers on the job,” he said.
He added that the company has enrolled apprentices in two cohorts, with trainees demonstrating improved competence, confidence and workplace readiness.
Following the success of the programme, Komu said Realtech Plumbers plans to increase the number of apprentices recruited in the next cohort and encouraged more employers to embrace apprenticeship models.
The study also highlighted the benefits that small and medium-sized enterprises (SMEs) can gain through improved productivity, competitiveness and access to skilled workers.
Initially introduced in electrical and plumbing trades, the PropelA programme has expanded to welding, lift and escalator maintenance, maintenance services and selected hospitality occupations.
The programme has potential for adoption in other sectors including manufacturing, energy, transport and agribusiness, where demand for skilled workers continues to grow.
Since its launch in 2023, PropelA has partnered with more than 70 companies, trained over 400 apprentices and achieved an employment rate of more than 80 per cent.
Stakeholders said the success of the programme demonstrates the potential of work-based learning to strengthen enterprise performance, reduce youth unemployment and create sustainable career pathways for young people.
By Wangari Ndirangu
