Kenyan employers avoid hiring inexperienced job seekers due to the high costs that come with it. Ms Jacqueline Mugo, the Federation of Kenya Employers (FKE) executive director, says companies find it expensive to take in fresh graduates.
“Firms incur a lot of upfront costs when they hire fresh, inexperienced graduates or interns. Besides paying income tax, firms have to invest in their training,” the paper quotes.
FKE now wants the National Treasury to fulfil a promise it made in 2013 to grant fiscal incentives to companies that employ fresh graduates.
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Mr Henry Rotich, Treasury cabinet secretary, proposed in 2013/14 budget to give subsidies to cover the costs associated with taking up the inexperienced youths who flood the job market every year in order to reduce the unemployment rate which stands at about 70% of the youth.
“The government will develop a subsidy programme to employers that will lower the cost of hiring young people… Under consideration is a tax rebate to tax-compliant businesses and NGOs who hire inexperienced youth graduating from our educational institutions,” said Rotich two years ago.
Most graduates from Kenyan tertiary institutions have theoretical knowledge but lack adequate skills required in the job market hence the need for training, argues FKE.
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