PropelA ROI Study: Industry-Led Apprenticeships Deliver 30% Returns for Businesses, Offer Scalable Solution to Kenya's Youth Unemployment
By Gedion Nzyoki -
NAIROBI, Kenya, July 21, 2026 — A new study has found that industry-led skills development not only improves employment opportunities for young people but also delivers measurable financial returns for businesses, strengthening the case for scaling employer-driven apprenticeship programmes across Kenya.
Apprentices during the launch of the third cohort of the PropelA Apprenticeship Programme at the Don Bosco Boys Town Institute. Photo: PropelA Apprenticeship Programme (Facebook)
The findings, released on Tuesday during the PropelA Business Impact & Investment Insights Breakfast at the Mövenpick Hotel in Nairobi, indicate that companies participating in the PropelA Dual Apprenticeship Programme achieve an average 30 per cent Return on Training Investment (ROTI), generate approximately KES 2 million in net value per company, and recover their investment within three years.
The independent Return on Investment (ROI) Study, conducted by Orange & Teal on behalf of Swisscontact, argues that skills development should be viewed as an economic investment rather than merely a social intervention.
According to the study, nearly 87 per cent of the value generated by participating firms comes directly from apprentice productivity gains, highlighting a strong connection between skills development, business performance and enterprise competitiveness.
Skills Development as Economic Infrastructure
Speaking during the event, Swisscontact Kenya Country Director Sharon Mosin said the findings challenge long-held perceptions about workforce 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."
Sharon Mosin, Country Director of Swisscontact Kenya, delivers her remarks during the PropelA Business Impact & Investment Insights Breakfast in Nairobi on July 21, 2026. Photo: Swisscontact Press
Mosin said Kenya's skills gap should not be viewed solely as an education or employment issue but as a broader systems challenge requiring stronger collaboration between training institutions and industry.
"For years, we have discussed youth unemployment as one challenge and skills shortages as another," she said.
"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."
Bridging the Gap Between Learning and Employment
The study comes as Kenya continues implementing its Bottom-Up Economic Transformation Agenda (BETA), which prioritises industrialisation, affordable housing, infrastructure development, manufacturing and job creation.
Despite increasing demand for skilled labour across these sectors, many employers continue to report difficulties finding workers with practical competencies required in modern workplaces.
At the same time, thousands of young people enter the labour market every year without clear pathways into decent employment. According to Swisscontact, these two challenges are closely linked.
The organisation says the disconnect between skills development systems, employer needs and labour market demand has left businesses struggling to recruit qualified workers while young people face persistent unemployment despite completing their education.
The study notes that employer-led apprenticeship programmes such as PropelA provide a practical solution by integrating workplace learning with classroom instruction, allowing apprentices to gain industry-relevant skills while contributing productively to businesses.
Strong Returns for Businesses and SMEs
Beyond improving employability, the research found that apprenticeships generate tangible financial benefits for participating firms.
Businesses enrolled in the programme reported productivity gains, faster returns on investment and improved competitiveness, with the majority of value created through apprentices becoming productive contributors to operations rather than through subsidies or administrative savings.
The findings also indicate that small and medium-sized enterprises (SMEs), which often face skills shortages and recruitment challenges, stand to benefit significantly from investing in structured apprenticeship programmes.
Researchers concluded that if Kenya is to accelerate industrialisation and improve SME competitiveness, investment in skills should be treated as investment in economic infrastructure.
PropelA Model Shows Promising Results
Swisscontact says PropelA was established to place employers at the centre of workforce development.
The programme combines 75 per cent workplace learning with 25 per cent classroom instruction, ensuring apprentices acquire practical experience alongside nationally recognised qualifications accredited by the National Industrial Training Authority (NITA).
Training content is developed jointly with employers to match labour market needs while creating direct pathways into employment.
Initially launched in electrical and plumbing trades, the programme has expanded into welding, lifts and escalators, maintenance services and selected hospitality occupations, with opportunities for further expansion into manufacturing, energy, transport and agribusiness.
Since its inception, PropelA has partnered with more than 70 companies, trained over 400 young people, and achieved an employment rate exceeding 80 per cent.
Supporting Kenya's Economic Transformation
The study argues that employer-led apprenticeships can simultaneously address youth unemployment, workforce readiness and enterprise productivity while supporting Kenya's industrialisation agenda.
It concludes that when businesses, training institutions and labour market systems work together, companies become more productive, young people become more employable and the wider economy becomes more competitive.
About Swisscontact and the PropelA Dual Apprenticeship Programme
Swisscontact is a Swiss non-profit organisation founded in 1959 by Switzerland's private sector and academia.
The organisation works to unlock the potential of private enterprise to drive sustainable development and shared prosperity.
In Kenya, Swisscontact has been operating for 28 years, implementing programmes focused on youth skills development, digital transformation, climate action, public health, and the growth of small and medium-sized enterprises (SMEs).
The PropelA Dual Apprenticeship Programme, meanwhile, is an industry-led skills development initiative implemented by Swisscontact in partnership with more than 70 industry partners, Technical and Vocational Education and Training (TVET) institutions, and the National Industrial Training Authority (NITA).
Through a combination of workplace-based learning and classroom instruction, the programme equips young people with industry-relevant skills, nationally recognised qualifications, and practical experience that enhances their employability and creates pathways to decent work.
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