Nairobi, Kenya, 21st July 2026 – Kenya faces a growing paradox. Employers struggle to find industry-ready talent, while thousands of young people struggle to access decent work opportunities. At the same time, businesses, particularly SMEs, face persistent productivity constraints that limit growth and competitiveness.
A new Return on Investment (ROI) Study released today provides evidence that these challenges may be more connected than they appear.
The study, conducted on Kenya’s PropelA Dual Apprenticeship Programme, found that industry-led skills development generates measurable returns for businesses while improving employment outcomes for young people, offering a practical model for strengthening workforce productivity, enterprise competitiveness, and economic growth.
The findings were unveiled at the PropelA Business Impact & Investment Insights Breakfast, convened by Swisscontact and attended by private sector leaders, development partners, government representatives, industry associations, and workforce development stakeholders.
Conducted by Orange & Teal on behalf of Swisscontact, the independent business case study found that companies participating in PropelA achieve an average 30% Return on Training Investment (ROTI), generate approximately KES 2 million in net value per company, and recover their investment within three years. The study further revealed that nearly 87% of the value generated comes directly from apprentice productivity gains, highlighting the direct link between skills, productivity, and business performance.
Speaking at the event, Swisscontact Kenya Country Director Sharon Mosin said the findings challenge conventional thinking on skills development.
“The findings challenge us to rethink how we view skills development. Skills are not simply a social investment. They are economic infrastructure. Just as roads connect markets and energy powers industry, skilled people drive productivity, competitiveness, and growth. When businesses invest in skills, they are investing in their own future.” Swisscontact
SWISS FOUNDATION FOR TECHNICAL COOPERATION
Victoria Plaza, Nairobi, Kenya. Tel +254 714 055 954, www.swisscontact.org, [email protected]
The study arrives at a critical moment for Kenya as the country advances its industrialisation agenda, expands infrastructure investments, and seeks to create quality jobs under the Bottom-Up Economic Transformation Agenda
(BETA).
Yet despite growing demand for skilled labour, many employers continue to report difficulties finding workers with the practical competencies required in modern workplaces. At the same time, increasing numbers of young people enter the labour market without a clear pathway from learning to earning.
According to Swisscontact, these are not separate challenges. They are symptoms of a larger disconnect between skills development, enterprise needs, and employment opportunities. PropelA was established to address this disconnect by placing employers at the centre of workforce development.
The dual apprenticeship model combines structured workplace learning with classroom instruction, ensuring young people acquire practical experience, industry-relevant competencies, and nationally recognised certification while contributing productively to businesses.
Since its launch, PropelA has partnered with more than 70 companies, trained over 400 young people, and achieved an employment rate of over 80%, demonstrating its potential to address both skills shortages and youth unemployment. The findings provide a compelling case for scaling industry-led skills development initiatives nationally.
“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. PropelA demonstrates that when employers become co-investors in skills, businesses gain productivity, young people gain opportunity, and the economy gains a stronger workforce.” Mosin added.
The study also found that small and medium-sized enterprises (SMEs) stand to benefit significantly from investing in apprenticeships, positioning skills development as a practical solution to improving enterprise competitiveness and productivity.
Initially implemented in electrical and plumbing trades, PropelA has since expanded into welding, lifts and escalators, maintenance services, and selected hospitality occupations. The model also presents significant opportunities for adaptation across manufacturing, energy, transport, agribusiness, and other high-growth sectors.
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At a time when Kenya is seeking practical solutions to youth unemployment, enterprise productivity, and workforce competitiveness, the PropelA ROI Study provides compelling evidence that investing in skills delivers measurable economic returns.
The findings demonstrate that industry-led apprenticeships can simultaneously strengthen SME productivity, improve employment outcomes, and develop the skilled workforce required to achieve Kenya’s Bottom-Up Economic Transformation Agenda (BETA).
More importantly, the study suggests that skills, systems, and capital must work together to drive sustainable economic transformation. Skills without opportunity create unemployment. Capital without capability increases risk.
But when skills development is aligned with industry demand, businesses become more productive, young people become more employable, and economies become more competitive. Swisscontact
SWISS FOUNDATION FOR TECHNICAL COOPERATION
Victoria Plaza, Nairobi, Kenya. Tel +254 714 055 954, www.swisscontact.org, [email protected]
With proven returns for employers, strong outcomes for young people, and a model anchored in both industry demand and national systems, PropelA presents a scalable workforce development solution for government, industry, and development partners seeking to accelerate inclusive growth, industrialisation, and job creation across Kenya and beyond.
