Kenya

Kenyan Companies Earn 30% Returns by Training Their Own Workers

By Eddah Waithaka

A landmark study has provided compelling evidence that industry-led apprenticeships are a powerful and profitable solution to Kenya’s intertwined challenges of youth unemployment and skills shortages. The new Return on Investment (ROI) study on the PropelA Dual Apprenticeship Programme reveals that companies investing in practical skills training are seeing significant financial returns.

The findings, unveiled at the PropelA Business Impact & Investment Insights Breakfast in Nairobi, show that participating companies achieve an average 30% Return on Training Investment (ROTI).

The independent study, conducted by Orange & Teal on behalf of Swisscontact, further found that each company generates approximately KES 2 million in net value and recovers its training investment within three years .

Photo Caption: Partners from Industry, Development Sector, Donors, Government at the PropelA Business Impact and Investment Insights Breaksfast

The evidence confirms that the primary driver of this value is productivity. Nearly 87% of the economic return comes directly from the increased productivity of apprentices during their training.

This challenges the traditional view of skills development as a social cost, instead positioning it as a strategic economic investment.

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“The findings challenge us to rethink how we view skills development. Skills are not simply a social investment. They are economic infrastructure,” said Sharon Mosin, Swisscontact Kenya Country Director. “Just as roads connect markets and energy powers industry, skilled people drive productivity, competitiveness, and growth” .

Photo Caption: Sharon Mosin -Country DirectorSwisscontact Kenya speaking during the event.

The PropelA model places employers at the centre of workforce development, blending 75% workplace learning with 25% classroom instruction.

Since its launch, the programme has partnered with more than 70 companies, trained over 400 young people, and achieved an employment rate of over 80% . It has expanded from its initial focus on electrical and plumbing trades to include welding, lift maintenance, and hospitality occupations .

Kenya Association of Manufacturers (KAM) Chief Executive Tobias Alando emphasized that skills development is a business imperative. KAM has supported over 1,500 young people through such demand-driven initiatives .

Photo Caption : Tobias Alando CEO, Kenya Association of Manufacturers ( KAM) speaking during the event

The programme is supported by partners including the Hilti Foundation and Geberit AG and is implemented in collaboration with the National Industrial Training Authority (NITA) .

At a critical moment for Kenya’s industrialisation agenda, the study suggests that skills development must be treated as a key pillar of economic growth. Swisscontact’s Jimmy Delyon noted the model’s potential is significant, with the programme recently expanding to Mombasa to address regional skills gaps . The evidence makes a clear case for scaling industry-led training to build the workforce needed for Kenya’s future.

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