Work permits remain key hurdle

A Bank of Uganda stand in a finance and insurance expo in Kampala. The government seems set to close the financial year with a huge revenue shortfall. Photo/Morgan Mbabazi  Nation Media Group

 

By SCOLA KAMAU Special Correspondent

 

Kenya has made the greatest strides in allowing free movement of labour across the region, according to new findings by the East African Business Council (EABC).

The country is waiving work permit fees for nationals of the five partner states of the East African Community, thus giving it easier access to human capital.

Kenya issued 2,755 work permits to workers from other EAC partner states from 2011 up to May 2012. In addition, 75 and 23 dependants were employed in 2011 and 2012 respectively. The survey, however, shows over 70 per cent of applications from EAC citizens have not been approved.

“Therefore, Kenya has a high rejection rate for work permit applications from workers from the EAC,” reads the report.

The EABC findings also single out Rwanda, which issues free work permits to all nationals of the EAC partner states but notes that like Kenya, there are still barriers with regard to accessing the relevant documents.

Rwanda reported a substantial rise in the number of foreign nationals seeking employment between July 2010 and December 2012.

Immigration authorities say a total of 4,655 free permits were issued to workers from EAC partner states within that period.

As part of a move to abolish non-tariff barriers in accordance with the EAC Common Market Protocol, the regional bloc is seeking to harmonise laws regarding the issuance of work permits, which are currently cumbersome and costly.

However, the absence of a legally binding framework has left the implementation largely at the discretion of member states.

“None of the countries have put into full force the EAC Common Market Protocol to enable the free movement of people and labour,” said Vimal Shah, the chairman of the Kenya Private Sector Alliance.

Currently, each country has its own classification structures, forms, fees and procedures regarding the issuance of work permits.

At $2,000 each, Tanzania has the most expensive work permit with complicated regulations that emphasise immigration control measures at the expense of work related measures, the EABC survey noted.

In Uganda, officials and business executives polled by the EABC reported that work permit fees for all foreigners including EAC nationals had remained unchanged since September 2009.

Uganda charges $250 per year for work permits for missionaries, volunteers and students and $1,500 for businessmen and consultants.

However, this fees are expected to increase soon following a government directive to all state departments, agencies and ministries that they reflect the rising cost of living and comply with the country’s policy of maximising its non-tax revenues.

However, Uganda has reduced the duration for issuing work permits to nationals from other EAC partner states to less than 10 days from 30.

In Burundi, charges for work permits have remained unchanged since the coming into force of the Common Market Protocol in 2010.

Business executives reported that the country charges 3 per cent of the annual gross salary of its foreign workers (including EAC partner states). This is paid annually effective from the date of the visa of the work contract and is not reimbursable to the worker.

This means accessing a work permit in Burundi, for example, is expensive for workers from Kenya, Tanzania and Uganda and as such, many lack these documents.

“There are no indications that efforts are being made to reduce the cost of work permits for East Africans. Also, it is not possible to establish the period it takes to process a work permit. ” said the EABC report.

The EABC recommends that work permits be recast as a tool that facilitates orderly movement of workers and not an immigration control tool, while the costs for East Africans be reduced over an agreed time frame.