A new study has found that employer-led skills training delivers measurable financial returns for businesses while improving employment opportunities for young people, offering a practical solution to Kenya’s youth unemployment and skills shortage.
The Return on Investment (ROI) Study on the PropelA Dual Apprenticeship Programme shows that companies investing in apprenticeships record an average 30 per cent Return on Training Investment (ROTI), generate about Sh2 million in net value and recover their investment within three years.
The findings were released on Tuesday during the PropelA Business Impact and Investment Insights Breakfast organised by Swisscontact in Nairobi.
The study, conducted independently by Orange & Teal on behalf of Swisscontact, found that 87 per cent of the value generated by participating companies came from increased apprentice productivity, underscoring the direct link between skills development and business performance.
Swisscontact Kenya Country Director Sharon Mosin said the findings provide evidence that investing in workforce skills should no longer be viewed as a corporate social responsibility initiative but as a strategic business investment.
“When PropelA started about five years ago, it was simply an idea based on the belief that when the private sector leads skills development, everyone benefits. Today, we have evidence that this model works,” she said.
Ms Mosin said businesses often focus on the cost of training employees but overlook the far greater cost of hiring workers who lack the required skills.
She said poor recruitment decisions lead to lower productivity, repeated hiring costs, production errors, workplace accidents and lost business opportunities.
“Today’s evidence shows that investment in people should be treated with the same seriousness as investment in machinery, technology and infrastructure,” she said.
The study comes as Kenya continues to face a mismatch between the skills employers require and those possessed by many job seekers.
According to the report, youth unemployment among people aged between 15 and 24 years stood at about 15.2 per cent in 2025, despite growing demand for skilled workers in manufacturing, construction and other technical sectors.
The report argues that the country’s challenge is not simply a lack of jobs but a disconnect between education and labour market needs.
It notes that businesses continue to struggle to recruit industry-ready workers, leading to lower productivity, rising recruitment costs and slower expansion.
Young people, meanwhile, face limited workplace experience, skills mismatches and difficulties transitioning from school to employment.
Kenya Association of Manufacturers (KAM) Chief Executive Officer Tobias Alando said skills development has become essential for companies seeking to remain competitive.
“The conversation around skills is no longer a social luxury. It is a business necessity. Companies investing in skills gain better productivity, innovation, resilience and improved market access,” he said.
Mr Alando said the partnership between KAM and Swisscontact has so far trained more than 1,500 young people through demand-driven programmes, with over 1,260 securing employment after graduation.
The initiative has also supported the review of eight industry-aligned training curricula and equipped more than 710 young people with entrepreneurship and financial literacy skills.
He called for stronger collaboration between government, industry and training institutions to scale up employer-led apprenticeship programmes across the country.
“No single institution can solve Kenya’s workforce challenges. We need partnerships that align training with industry needs and policy reforms that encourage private sector investment in skills development,” he said.
Under the programme, apprentices spend 75 per cent of their training in workplaces and 25 per cent in classrooms, with employers playing a central role in curriculum development and workplace learning.
Swisscontact says the model has expanded beyond electrical installation and plumbing to include welding, maintenance services, lifts and escalators, hospitality occupations and programmes in Mombasa, Kilifi and Tanzania.
The study found that employer-led apprenticeships can help address youth unemployment, improve enterprise productivity and strengthen Kenya’s industrial competitiveness, making skills development a key driver of economic growth rather than simply a social intervention.
The PropelA programme is implemented by Swisscontact in partnership with more than 70 companies, Technical and Vocational Education and Training (TVET) institutions and the National Industrial Training Authority (NITA).
