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Parliament Allocates Sh1bn to The PSC for Internships

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In a budget revision for the financial year starting July 2019, parliament has included an allocation of Sh1 billion for the purpose of hiring interns who will be earning a monthly stipend of Sh25,000.

The National Assembly Budget and Appropriation Committee has directed the Public Service Commission (PSC) to employ interns sourced from all the constituencies.

This would present a great opportunity for fresh graduates to earn money as they gain much-needed experience especially as the current employment rate stands at 40 percent.

Kenyan employers have long since complained of the quality of graduates entering the job market. The graduates are said to lack experience and specialized skills, thus leading firms to spend a lot on on-the-job training.

“Increase allocation for Public Service Commission (PSC) by Sh1 billion for monthly stipend of interns,” said the BAC. This is one of the recommendations that must be adopted by the Treasury into the budget for the fiscal year starting July.

The move will also assist the government in mitigating a potential job crisis in the civil service which will lose 60,000 workers by June 2020.

Since public service salaries eat up half of all government revenues and make it harder to finance development projects, the hiring of interns would ease the bloated wage bill by replacing some of the retirees.

According to data from the Kenya Bureau of Statistics (KNBS), the economy generated only 78,400 new formal jobs in 2018; a decline from 114,400 created in 2017, worsening the situation for school leavers.

A number of NSE-listed companies blamed a tough business environment as the reason for offering early staff exit packages for employees, which poses further complications for those currently employed.

With more students enrolling for studies, the number of vocational training centers rose by 26.6 percent last year to 1,502 with universities increasing from 61 to 63.

With fresh graduates generally perceived as being inexperienced and unskilled, their opportunities for direct employment after school are usually low.

This then leads to a high level of unemployment in the economy unless both the private and public sectors generate jobs at a faster rate.

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