The government on Wednesday announced changes to the dates of remitting the Industrial Training Levy following amendments to the law.
According to the Act, the training levy will now be remitted by employers on the 9th day of the month and not the 5th day as it has always been.
The move is aimed at harmonising the new changes with the period within which the Pay as You Earn (PAYE) is remitted to the Kenya Revenue Authority (KRA).
In 2022, the Industrial Training Act was amended to provide for remittance by employers of training levies on the 5th of every month to KRA.
Since the commencement of the Act in January this year, KRA has collected a total of Ksh1.45 billion which was disbursed to the National Industrial Training Authority (NITA) for distribution as per the Act.
"This is geared towards ensuring compliance by employers in remitting training levies," the Act read in part.
The move is also aimed at increasing collections by KRA, money which will go into paying wages to interns and funding the operations of institutions of higher learning.
In February this year, KRA noted it had collected billions through the industrial training levy from employers. KRA made the revelations while appearing before the National Assembly Education Committee.
KRA through its commissioner Rispah Simiyu also noted the levy was payable by all employers and remitted on the specific date as mandated by the constitution.
The Industrial Training Amendment Act 2022, became effective in April of the same year. The changes saw the transfer of collection responsibility from the Director General of NITA to the KRA Commissioner General.
A service level agreement was signed in April last year between KRA and NITA to formalise the transfer of the responsibility of collecting the levy.
"Since April 2023, KRA has implemented necessary system enhancements aimed at auto-calculation of NITA levy based on the number of employees declared on PAYE," Ms Simiyu noted.
