Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli has pleaded with MPs to dismiss bills that continue to propose tax deductions on workers.

Speaking at a funeral in Kakamega county, Atwoli urged Ikolomani MP Bernard Shinali to withdraw the unemployment insurance authority Bill.

According to the drafted Bill, employees who become unemployed or their respective beneficiaries will be able to get salaries.

This will be done through the establishment of an Unemployment Insurance Fund to which both the employer and employee will contribute.

Shinali noted that the bill will cushion the unemployed against harmful socio-economic effects of unemployment.

However, Atwoli said imposing more taxes on workers is hurting their payslips which in return is leaving them empty-handed.

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“I would want to plead with Shinali to abandon anything related to the employment levy because people’s payslips are being deducted heavily. We don’t have anything left on our payslips,” Atwoli said.

“If we have not yet become economically viable as a country we cannot be able to grow our economy. Kenya Kwanza is now putting a mechanism into place to see whether it can spur economic growth. But before that let us not add another burden to Kenyans.”

Since the passage of President William Ruto Finance Act 2023, employees in the formal sector have been making a monthly contribution of 3 per cent to the Housing Fund since July 1.

The levy is payable by the employee and employer at a rate of 1.5 per cent each.

Some 42,144 learners who will be placed in Technical and Vocational Education and Training (TVET) institutions in the 2023/24 academic year will receive full Government sponsorship.

According to Principal Secretary, Dr Esther Muoria, this is out of the 145,325 learners who sat the 2022 Kenya Certificate of Secondary Education (KCSE) expected to join TVET institutions in the next intake, starting September.

The PS lauded the new funding model for institutions of higher learning saying it promotes equity since the scholarships or loans granted will be based on the level of need.

“The new model enhances inclusivity since all trainees are eligible for financial assistance. Trainees placed by KUCCPS to TVETS under the Ministry are eligible for funding,” the PS said.

She said learners will join the 238 institutions spread across the country, once the Kenya Universities and Colleges Central Placement Service (KUCCPS) places them.

Once the learners are placed by KUCCPS to TVETs, the institutions will issue an admission letter and direct them to the funding application link.

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She called for the need to consolidate all trainee support through funding and sponsorship to a central unit to avoid multiple funding of the same person and a bursary formula be developed and implemented.

She also recommended review of the model every four years or on need basis, even as she stated that the ongoing trainees will continue with the old modes, at least for now.

“Institutions should sensitize all stakeholders on the new financing model. The institutions should also sensitize ongoing trainees including the May intake group that the changes will not affect them,” the PS stated. The process of placing students to universities and TVETS shall not be linked to funding starting from the 2023/2024 academic year.

The new model of funding higher education will commence with the new cohort of 173,127 students joining universities and 145,325 joining TVETS.

To weed out fraudsters in funding, the Higher Education Loans Board’s (HELB) Mean Testing Instrument (MTI) will be adopted, which has been described as a tested method, with linkages at Kenya Revenue Authority (KRA) and Registrar of Persons while local priests and chiefs will also be required to sign for students.

The PS said MTI will score trainees based on eight parameters namely parent’s background, gender weights, course type whether Sciences or humanities, previous school that the learner attended, family’s expenditure on education, family size and composition, marginalization and disabilities.

The PS said funding is based on actual cost of the programme, which is Sh67,189 with an average of 58 per cent of the cost being Government scholarship.

An average of 32 per cent of the cost of the programme will be Government loan while an average of 10 per cent of the cost will be household contribution.

Students will be categorized according to four levels of need namely vulnerable, extremely needy, needy and less needy.

The PS said 20,346 students in the vulnerable category will receive 80 per cent of Government sponsorship and 20 per cent of loan, which means that they are fully covered.

Similarly, another 21,799 learners will receive 70 per cent of Government sponsorship and 30 per cent of the loan.

Some 24,705 learners who will join TVETS will get 50 per cent Government scholarship and 30 per cent and 20 per cent loan and household contribution respectively.