Members of the Committee on Public Investments on Social Services, Administration, and Agriculture (PICSSAA) have demanded accountability from the National Industrial Training Authority (NITA) over its failure to enforce collection of training levies and punish defaulters.
The concerns were raised during a parliamentary session convened to examine audit queries by the Office of the Auditor General (OAG), which revealed that Ksh 194,220,421 in training levies remained uncollected as of June 2015.
The audit further noted that NITA had neither pursued legal action against defaulters nor provided a breakdown explaining how the debts accumulated.
The Auditor’s findings indicate a breach of Industrial Training Act Cap 237, specifically Section 5B(4), which stipulates penalties for non-compliance. Under the law, offenders are liable to a fine of up to Ksh 100,000, with an additional penalty of up to Ksh 50,000 for every month the default persists after conviction.
Committee Chairperson Emmanuel Wangwe questioned NITA’s inaction, noting that the legal framework has been in place since the promulgation of the Constitution of Kenya 2010.
“You had all the leeway to take these people to court. Since then, have you done so?” he asked.
Ndhiwa MP Peter Owino raised concerns over weak enforcement mechanisms, criticizing the Authority for continuing to offer services without ensuring compliance.
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“How can you provide services and fail to follow up on payments? This raises serious concerns about accountability by NITA,” he said.
Nominated MP Jackson Kosgei also faulted the Authority’s oversight structures, questioning the effectiveness of its Board.
The Committee further scrutinized NITA’s engagement of a debt collection firm, Collection Africa Limited, directing the Authority to submit documentation and board minutes approving the firm’s appointment.
Responding to the queries, NITA Acting Managing Director Theresa Wasike attributed the failure to prosecute defaulters to inadequate staffing, explaining that legal proceedings require the presence of inspectors.
She disclosed that NITA contracted Collection Africa Limited on May 20, 2020, on a commission basis to recover outstanding levies. Additionally, the Authority partnered with the Kenya Revenue Authority (KRA) on April 2, 2023, through the Unified Payroll Returns system to enhance collection efficiency. Under this arrangement, KRA retains two percent of the total levies collected in accordance with the Kenya Revenue Authority Act.
The Committee has now directed NITA to provide further evidence of enforcement actions and reforms aimed at strengthening levy collection and accountability.
By Obegi Malack
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