Several Employers Risk Prosecution Over Unpaid NITA Levy
A number of employers in Kenya could soon face prosecution for allegedly failing to remit the mandatory training levy to the National Industrial Training Authority (NITA).
This comes as Members of Parliament push for immediate action and stricter enforcement against those who have ignored the legal requirement.
The issue emerged after the National Assembly’s Public Investments Committee revealed that Ksh194 million in unpaid training levies is still outstanding. According to the committee, there was no clear evidence that any legal action had been taken against employers who defaulted on the payments.
During a meeting with NITA officials held on Thursday, April 30, lawmakers strongly criticised the authority for failing to enforce existing laws. MPs noted that the law clearly requires employers to remit the levy and also provides penalties for those who fail to comply.
The NITA levy is a mandatory payment established under the Industrial Training Act. It requires all employers in Kenya to contribute funds that support skills development, employee training, and the growth of a more skilled workforce across the country.
Under the law, every employer is expected to register with NITA and regularly pay the levy depending on the number of workers they employ. Payments are made through NITA’s official systems or through the Kenya Revenue Authority’s Unified Payroll Returns platform.
Committee Chairperson Emmanuel Wangwe questioned why the authority had not taken stronger legal steps against defaulters despite having enough time and legal powers to do so.
“The Constitution of Kenya has been in force since August 27, 2010. You had all the opportunity to take these people to court. Since then, have you done so?” Wangwe asked.
Other lawmakers also raised concerns over what they described as weak debt collection systems. They argued that some employers continue receiving NITA services even after failing to pay the required levy.
Ndhiwa MP Peter Owino criticised the authority, saying it was unacceptable to continue offering services while ignoring unpaid obligations.
“How can you provide services and fail to follow up on payments? This raises serious concerns about accountability by NITA,” said Owino.
The committee also demanded documents explaining the appointment of Collection Africa Limited, a private company that was contracted to recover the unpaid levies on behalf of the government.
In response, NITA said its failure to prosecute defaulting employers was mainly caused by staff shortages and procedural difficulties, especially the need for inspectors to be present during court processes.
However, MPs insisted that the authority must improve its enforcement systems and ensure all employers obey the law. They warned that failure to collect the levy weakens national efforts to promote training, develop skills, and prepare Kenyan workers for a competitive job market.
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