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MPs question NITA over Sh194 million levy arrears as enforcement gaps emerge

The Public Investments Committee questioned NITA’s enforcement of training levy arrears flagged by the Auditor General, citing uncollected levies of Sh194,220,421 as of June 2015. NITA said it has adopted new collection and governance measures.

Parliamentary scrutiny over the performance of the National Industrial Training Authority (NITA) intensified on Thursday as lawmakers demanded answers on long-standing unpaid training levies, alongside concerns over enforcement gaps and internal accountability systems.


Acting Chief Executive Officer Theresa Wasike appeared before the National Public Investments Committee on Social Services, Administration and Agriculture to respond to audit findings that pointed to uncollected training levies amounting to Sh 194,220,421.00 as of June 2015, alongside wider governance and financial management concerns.


Members of the committee questioned why recovery efforts had taken so long, pointing to available legal mechanisms that could have been used earlier to pursue defaulters.


Committee Chairperson Emmanuel Wangwe challenged the Authority on its enforcement record, stating, “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?”


Ndhiwa MP Peter Owino also raised concerns over follow-up on payments and compliance levels among employers, questioning the effectiveness of the Authority’s collection systems. “How can you provide services and fail to follow up on payments? This raises serious concerns about accountability by NITA,” he said.


Wasike told the committee that the Authority has taken steps in recent years to improve compliance and strengthen levy collection processes after earlier operational challenges slowed enforcement.


She explained that limited staffing and procedural requirements linked to prosecution processes had previously affected the speed of recovery efforts.


According to her, the Authority has since adopted new measures, including engaging Collection Africa Limited in 2020 to support debt recovery and improve follow-up on outstanding payments.


She further informed MPs that in April 2023, NITA partnered with the Kenya Revenue Authority under the Unified Payroll Returns system to enhance employer compliance monitoring and simplify levy remittance processes.


Beyond revenue collection concerns, lawmakers also raised governance issues, focusing on the structure of the Authority’s Board and internal control mechanisms.


Wasike explained that the Board comprises representatives from the Federation of Kenya Employers, the Central Organization of Trade Unions, government, and independent members, with additional nominations expected to strengthen oversight.


Wangwe urged the Authority to reinforce accountability systems as it continues implementing its mandate, stressing the need for stronger compliance enforcement across employers.


The committee further highlighted audit issues touching on financial reporting, asset records, and service delivery over several financial years, with NITA stating that corrective measures are currently underway as part of ongoing institutional reforms.

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