A new study has found that industry-led skills training not only improves youth employment but also delivers strong financial returns for businesses, making it a practical solution to Kenya’s unemployment challenge.

The Return on Investment (ROI) study, conducted on the PropelA Dual Apprenticeship Programme by Orange & Teal on behalf of Swisscontact, shows that companies participating in the programme record an average 30 per cent return on training investment.

On average, each business generates about KSh2 million in net value and recovers its investment within three years.

The findings were unveiled during the PropelA Business Impact and Investment Insights Breakfast in Nairobi, bringing together government officials, private sector leaders and development partners.

Swisscontact Kenya Country Director Sharon Mosin said the study highlights the economic value of investing in skills development.

“The findings challenge us to rethink how we view skills development. Skills are not simply a social investment. They are economic infrastructure. When businesses invest in skills, they are investing in their own future,” she said.

The study found that nearly 87 per cent of the value created comes from increased apprentice productivity, demonstrating the link between workforce skills and business performance.

Since its launch, PropelA has partnered with more than 70 companies, trained over 400 young people and achieved an employment rate of more than 80 per cent.

Mosin said the programme proves that employers play a key role in addressing both skills shortages and youth unemployment.

“For years, we have discussed youth unemployment as one challenge and skills shortages as another. The evidence shows they are two sides of the same coin,” she said.

Initially introduced in electrical and plumbing trades, the programme has expanded into welding, lifts and escalators, maintenance services and selected hospitality jobs, with potential for adoption in manufacturing, transport, energy and agribusiness.