Treasury CS Ukur Yatani has widened the net for tax rebates to employers who offer internship opportunities to university and TVET institution graduates.
While reading the 2021/2022 Financial Budget in Parliament this afternoon, CS Yatani said that on top of the existing tax rebate offered to employers who take in more than 10 graduates within a year, they would be allowed to cut down on the allowances they pay.
“These employers are allowed to deduct, from their taxable income, an extra fifty percent out of the cost of the apprentice emoluments,” Yatani said.
By enrolling more students from TVET institutions, Yatani said that it would be easier for these young graduates to smoothly transition and align themselves within the current job market.
“It’s my hope that employers will take advantage of this incentive and give our young graduates from the TVET institutions opportunities to gain practical experience so as to expand their employability,” Treasury CS added.
The government has been on the forefront in boosting the technical institutions, through provision of capitation fees, and loans to the students.
As at now, learners at such institutions pay upto KSh56,420 annually. Each student is eligible for a loan of upto KSh40,000 per year.
Of this, KSh26,400 goes to their tuition fees, while the rest KSh13,600 serves as their upkeep allowances.