Download A modest proposal on unemployment MICHAEL

The Standard ­ Tuesday
Date: 09.06.2015
Page 13
Article size: 138 cm2
ColumnCM: 30.66
AVE: 79733.33
MICHAEL ICHURA}
During our accounting lec­
tures, our teacher defined a bud­
get as an estimate of income over
expenditure, over a specified peri­
od of time. He was introducing the
class to the quantitative element
of a budget for the semester.
However, a budget is far more
than a quantitative measure; it
represents certain subtle aspects
such as the end or start of another
business period, reflection on past
performance, current and future
performance expectations among
others.
Com­
panies
engaging
young
people in
universi­
ties, poly­
technics,
Over the last two Budget
speeches, there has been a steady
increase in the budget estimates
colleges
from Sh900 million in 2012­2013
institu­
and other
A modest proposal on unemployment
icate illiteracy in the country by
increasing the allocation to Free
Primary Education and Free Sec­
ondary Education by 33 per cent,
with additional allocations to
school feeding programmes, san­
itary towels, better salaries for
teachers, improved e­learning and
laptops.
With a literate population, the
opportunities of employment are
improved, with greater access to
the job market locally and interna­
tionally. All these are the earmarks
of the Economic Stimulus Pro­
gramme that was tabled before
Parliament in the 2011­2012 Bud­
be presented by the Cabinet Sec­
retary before Parliament on June
get speech by the Finance Minis­
ter at the time, Uhuru Kenyatta.
According to Mr Rotich, the
numberof students going through
the 8­4­4 education system has in­
creased, hence the need to employ
more teachers and give them bet­
11,2015.
ter allowances.
to Shl.4 trillion in 2013­2014. The
2015­2016 budget is estimated to
cross the Sh2 trillion mark, as will
The numbers involved are
commendable and portray an up­
ward growth trend for a develop­
ing economy.
In the 2014­2015 budget
speech, Cabinet Secretary Henry
Rotich boosted the effort to erad­
tions...
The stimulus programme
made a proposal to ensure that
graduates of the 8­4­4 system re­
ceived wholesome training by en­
couraging companies to engage
them as interns.
The Economic Stimulus Pro­
gramme made a proposal that all
companies engaging young peo­
ple in universities, polytechnics,
colleges and other institutions of
higher learning would benefit
grammes should keep track ofthe
experience gained by seeking
feedback from the respective
from tax relief.
teract with institutions of higher
learning to ensure a transparent
process that adds value to all par­
ties while reducing levels of un­
employment. Most private univer­
This would herald a very strong
internship employment structure,
which would reduce the level of
unemployment in the country
which, according to the World
Bank, stand at 40 per cent.
These internship programmes
would have ensured the students
are equipped with the necessary
skills to meet the growing de­
mands ofthe job market.
The experience gained by a
student during an internship pro­
gramme contributes greatly in his
or her development. It ensures
that they are aware ofthe expecta­
tions ofthe job market and sets a
platform for shaping their career
paths.
While the interns would not be
given mainstream assignments,
they stand to learn a lot and when
given the chance, they no doubt
will prove themselves. Additional­
ly, the learning institutions en­
gaged in the internship pro­
companies.
This will ensure companies in­
sities have rolled out such
programmes and are churning out
well­groomed graduates ready for
the job market.
To implement this programme,
the company tax relief policy
would have to be discussed with
the stakeholders and agreed upon
to ensure it is objective.
Such tax reliefs may take the
form of reduced tax rates over a
period of time or tax relief from
Kenya Revenue Authority against
corporate taxes for all companies
engaging students in internship
programmes.
Mr Ichura is a Senior Tax
consultant at EY; michael.
[email protected]
The views expressed herein are
not necessarily those ofEY
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya