NATIONAL INDUSTRIAL TRAINING AUTHORITY

PRESENTATION TO IHRMFORUM

Augustine Rono

16th June 2017

6/19/2017

…developing tangible skills since 1925

To sensitize participants on:

•The role and functions of NITA;

•The Industrial training levy – purpose and benefits to contributors;

•Available Training schemes;

•Guidelines on training application,

•Guidelines on claiming reimbursement

Objectives of the Presentation

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WHO WE ARE

NITA is a state corporation established under the Industrial Training (Amendment) Act of 2011.

Initially was known as the Directorate of Industrial Training- a Department in the Ministry of Labour.

Under the Ministry of East African Community, Labour & Social Protection

Mandate; to promote highest standards in the quality and efficiency of Industrial Training in Kenya and ensure adequate supply of properly trained manpower at all levels in industry

Has its HQ at Industrial Area Nbi but has offices in; Msa, Ksm, Eld, Nkru, Kakamega, Nyeri, Thika, Embu, Athi-River

National Industrial Training Authority (NITA)

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NITA Vision, Mission & Core Values

Vision: A globally competitive and adequate workforce for industrial development.

Mission: To facilitate industrial training for enhanced productivity

Core Values Customer focus

Integrity, transparency and accountability

Creativity and innovation

Lifelong learning

Participation of stakeholders

Equity and access

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The National Industrial Training Board which consists of: A Chairperson appointed by the Cabinet Secretary;

The Principal Secretary – East African Community, Labour and Social Protection

The Principal Secretary - Ministry of Education, Science and Technology;

The Principal Secretary – National Treasury;

Members nominated and appointed by the Cabinet Secretary as follows: 3 persons nominated by the FKE;

3 persons nominated by the COTU; and

1 other member appointed by the Cabinet Secretary (representing other interest groups)

Governance Structure

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The Act gives NITA the following mandate

Industrial training (regulation & provision);

Industrial training Levy Administration (Assess & Collect)

Industrial training curricula;

Integrating labour market information into skills development;

Development and harmonization of industrial training curricula & assessment guidelines;

Assessing industrial training, testing occupational skills;

Awarding certificates including government trade test certificates;

Equating certificates;

Accrediting institutions engaged in industrial training.

Mandate

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Sector Training Committees (STCs) are established pursuant to Section 4J of the Industrial Training Act to perform functions determined by the NITB from time-to-time.

A Committee shall consist of such number of persons appointed in writing as the Board may determine, to represent:

Employers in the industry concerned;

Employees in the industry concerned; and

Other interests,

Sector Training Committees (STCs)

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The terms of reference for STCs are as outlined below:

Registration of employers for NITA regulation and levy compliance

Determining Training Needs Analysis (TNA) and approve Annual Training Plans.

Developing Industrial Training Schemes including; Occupational competence standards, testing and certification systems, approval of capacity for employers to offer apprenticeship, internship and attachment,

Recommending Training Providers and Assessors for Registration by the Authority.

Recommending mechanisms for improving Industrial Training Levy collection

STCs -ToRs

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The industry is organized into nine (9) economic sectors as follows: Agriculture, Livestock, Forestry, Fishing & Allied Agencies, Mining, Oil, Quarrying & Allied Agencies, Manufacturing & Allied Agencies, Energy – Electricity, Gas and Water & Allied Agencies, Building and Construction & Allied agencies, Commercial, Distributive, Wholesale, Retail Trade & Allied

Agencies, Transport, Storage, Communication & Allied Agencies, Finance, Insurance, Real Estate, Business Services & Allied

Agencies, Government Ministries, Counties, Parastatals, Education and

Research Institutions, Commissions, Community & Allied.

Economic Sectors

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NITA operates five (5)Industrial Training Centres (ITCs):

NITA-Nairobi

NITA-Textile Training Institute (Nairobi)

NITA-Kisumu

NITA–Athi River

NITA-Mombasa

Courses are:

Industry-oriented, demand driven courses for both formal and informal sectors – Simulation Centres

Short and long programmes (proficiency courses, skill upgrading courses, artisan, craft & Technician courses, and tailor - made courses).

Centres equipped with boarding facilities, training rooms, workshops and recreational facilities.

Centres have joint capacity of over 5,000 trainees

In addition to the 5, NITA has registered/accredited more than 400 training providers and accredited more than 600 assessment centres

Industrial Training - ITCs

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Industrial Training Act (Cap.237) makes provision for Industrial Training Levy.

Purpose of Levy is to support in full or part the cost of industrial training incurred by employers.

Legal Notice No. 113 of 14th June, 2007 contains provisions as to the person liable to pay levy, mode of payment and other enabling provisions.

Order requires an employer (unless already registered) to register and contribute Industrial Training Levy.

“An employer shall within 30 days after commencement of Order, unless already registered, apply to Director General in the prescribed form to be registered as an employer”.

INDUSTRIAL TRAINING LEVY

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Director General shall issue a certificate of registration to an employer registered under this Order.

Employer required to pay levy to NITA at a monthly rate of Kshs. 50/= per employee (person employed for wages/salary) including a casual employee, on or before last working day of month.

Payment to be accompanied by a payment return prescribed as “Form 2”.

Registered employer, who ceases permanently or temporarily to employ, shall within 30 days of ceasing, notify Director General accordingly in writing stating reasons of ceasing to be an employer.

Training Levy Contd…..

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Registration of employers

Employers are Key partners in delivery of NITA Mandate

All employers need to register with NITA

Registration as an Employer is legal requirement as per Sec 5B of the Act and the Levy order.

N/B :Employer means ‘any person, public body, firm, corporation or company who or which has entered into a contract of service to employ any person, and includes an agent, foreman, or manager;

Employee means ‘a person employed for wages or salary and includes an apprentice, indentured learner, temporary, seasonal and casual worker.’

LEVY FUND CONT.

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Direct deposit to National Industrial Training Authority KCB Industrial Area Branch Account No. 1102588075,

Bankers Cheque payable to ‘National Industrial Training Authority’

By Mpesa pay bill number 522331. In the place of account number, put your NITA registration number . e.g. CDAT-0001, RETAI-0001

NO CASH PAYMENT FOR TRAINING LEVY

Complete Form 2 (Nita Website) and attach evidence of payment; e.g. banking slips and send to Nita offices

Ensure to get official receipt for any payment

Payment of Training Levy

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5% of the amount due shall be added to the amount for each month or part of a month thereafter that the amount due remains unpaid a penalty.

A person who fails to comply with any provision of a training levy order shall be guilty of an offence and shall be liable to a fine not exceeding one hundred thousand shillings and

if such failure continues after a conviction, such person shall be liable to a penalty not exceeding fifty thousand shillings for every month or part thereof during which such failure is continued.

OFFENCES

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industrial training” means training for a specified industry- which is conducted under the following Schemes and programmes

1. Apprenticeship Schemes- Conducted in NITA Centres/Accredited Centres for Artisan, Craft and Technician apprentices (Dual System-In-plant & In-Centre)

2. Indentured learnership scheme- fully on job training in areas that may not be available in regular formal training institutions.

3. Industrial Attachment scheme- placement of a person in a workplace for the purpose of gaining knowledge and practical skills. A grant may be paid to up-to date employers after 3 months upon successful evaluation.

INDUSTRIAL TRAINING SCHEMES

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4. Trade Test- A systematic way of evaluating the competency of a person in a given trade or occupation

5. Skills-Upgrading Programs- enables training of existing employees for various tailor-made courses.

Includes local, regional and overseas (where a course is not locally available) training.

Conducted either in-house or open-house

Intended to improve performance at workplace

Approval for degree courses suspended.

Prior approval must be obtained from the Director General, NITA (7 days-Local & 14 days Overseas).

Training Schemes Contd…

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Training must be relevant to duties of the employee.

Application to be supported by details on:

a. Course content and objectives

b. Name of nominee, designation, ID copies

c. Name of trainer (be NITA registered or Accredited)

d. Course timetable & Duration (exact dates)

e. Fees

f. Specific Course venue (town, building)

g. Appointment letters for overseas (6 months)

Any changes be communicated to NITA prior to course commencement.

SUG Programme Contd…

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CAPPED AT 200% OF AN EMPLOYERS PREVIOUS

YEAR’S COINTRIBUTION.

Employer must be up to date with Levy payments

Must have made an application for training to NITA and approval granted.

Reimbursement claim must be made in the prescribed form supported with; receipts of payment of training or other costs, approval letter from NITA & evidence of course completion.

Reimbursement rates and items are as per NITA guidelines and normally communicated in the approval letter-course fees, air-fare (oversees), books, training materials, assessment

Reimbursement

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2016 REIMBURSENTS RATES

ITEM REIMBURSEMENT (Maximum Rates)

Open house (Non-

residential Courses)

Per Week: KShs.42, 000 per participant OR

Per day: KShs.8, 400 per participant

Open house (Residential

Courses)

Per Week: Kshs. 48, 000 per participant OR

Per day: KShs.9,600 per participant

In house

Courses:

Conducted within the employers premises

Per Week: Kshs 21,000 per participant per participant OR

Per day: Ksh 4,200 per participant

Conducted outside employer’s premises Per week: Kshs 31,500 per participant OR

Per Day: Ksh 6,300 per participant

Top Executive Management courses will be reimbursed at a maximum rate of:

Tuition Per Wk: KShs.60, 000 per participant OR

Per day: Kshs 12,000

Travelling

expenses

Return Economy air fare OR

2000cc engine capacity as per Automobile Association (AA) rates.

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TRAINING PERIOD CLAIMS SUBMISSION DEADLINE

DATE OF CHEQUES RELEASE

Jan-Mar 2017 30th Apr 2017 31st May 2017

Apr-Jun 2017 31st July 2017 31st Aug 2017

Jul-Sept 2017 31st Oct 2017 30th Nov 2017

Oct-Dec 207 31st Jan 2018 28th Feb 2018

REIMBURSEMENT PROGRAMME - 2016

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Employer not up to date in levy payment

Lack of training approval

Lack of relevant supporting documents (payment receipts from approved trainer-original/certified copy, evidence of course attendance & completion, Boarding pass etc)

Late submission of claims

Exhausted entitlement based on capping

Discrepancies in training approval details and reimbursement claim details

Failure to submit a reimbursement claim

REASONS FOR NON-REIMBURSEMENT

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Visit www.nita.go.ke

Emails: directorgeneral@nita.go.ke

qualityassurance@nita.go.ke

END