Fresh graduates are set to benefit from a tax rebate proposed by the government contained in the 2015/2016 budget. The move announced by National Treasury Cabinet Secretary Henry Rotich will allow employers to claim tax rebates by paying a lower corporate tax.
For companies to qualify for a tax break, the interns will have to be hired for at least one year, which will be a major boost to thousands of graduates who enter the market chasing very limited opportunities.
According to a survey released two months ago by Corporate Staffing Services, employers rate relevant experience and skill as the most important qualities when hiring.
“Although fresh graduates may have the right papers, employers are looking for candidates with experience, and this is where any kind of relevant experience will count,” said Perminus Wainana in an earlier interview.
Corporations have been averse to hiring interns because of the cost of training and the CS’s announcement is seen as a way of working with employer bodies like FKE in a bid to make internship positions available.
“I urge employers and the business community to take up this opportunity and help us build a resource base of skilled manpower,” said Rotich.
In his speech, the CS did not announce the percentage of rebates or the implementation of this incentive but will most likely be published in the coming weeks.
