MPs engages NITA on levy enforcement as authority outlines ongoing reforms

The National Industrial Training Authority (NITA) has outlined steps it is taking to strengthen training levy collection and enforcement, even as Members of Parliament raised concerns over outstanding arrears flagged in audit reports.

Appearing before the Public Investments Committee on Social Services, Administration and Agriculture (PICSSAA), NITA Ag.CEO Theresa Wasike responded to queries from the Office of the Auditor General (OAG), which highlighted uncollected training levies totaling Sh 194,220,421.00 as of June 2015.

The Committee questioned the pace of enforcement and recovery, with Chairperson Emmanuel Wangwe asking, “The Constitution of Kenya has been in force since 27th August 2010. You had all the leeway to take these people to court. Since then, have you done so?”

Peter Owino (Ndhiwa) also raised concerns about compliance and follow-up, “How can you provide services and fail to follow up on payments? This raises serious concerns about accountability by NITA,”

In response, Wasike told the MPs that NITA has in recent years adopted measures aimed at improving compliance and streamlining collections.

Theresa Wasike told the Committee that enforcement efforts had previously faced operational challenges, including staffing constraints and procedural requirements tied to prosecution.

She noted that the Authority has since moved to strengthen its systems, including engaging a debt collection firm, Collection Africa Limited, in 2020 and entering into a partnership with the Kenya Revenue Authority (KRA) in April 2023 through the Unified Payroll Returns platform to enhance efficiency in levy collection.

Lawmakers also raised questions around governance and oversight, including the composition of the Board and internal controls.

Wasike explained that the Board includes representatives from the Federation of Kenya Employers (FKE), the Central Organization of Trade Unions (COTU), government, and independent members, with additional nominations expected.

Wangwe urged the NITA to strengthen accountability frameworks as it implements its mandate, “The Constitution of Kenya has been in force since 27th August 2010. You had all the leeway to take these people to court. Since then, have you done so?”

The MPs further highlighted audit concerns touching on financial reporting, asset records, and service delivery across several financial years. NITA indicated it is working to address the issues as part of ongoing institutional improvements.