Let’s position Kenya as a labour hub

• The rising interest in Kenya is linked to the formation of the East African Community Common Market, which has a market of about 126 million people and allows the free movement of factors of production, goods and services among the five member states.
• Plans by Southern African Development Community (SADC), EAC and Comesa to form a Free Trade Area (FTA) covering more than 527 million people with an estimated combined gross domestic product of about $624 billion has also enhanced Kenya’s appeal to multinationals as a business hub.
• Also technical experts of foreign manufacturers come to Kenya to service or repair its products within their initial period of guarantee; to erect and install machinery too heavy to be delivered in one piece. Such experts would be in the country for 1-2 weeks.

Kenya and Nairobi in particular is fast becoming the African home of choice for multinational companies seeking to grow their presence on the continent.

The rising interest in Kenya is linked to the formation of the East African Community Common Market, which has a market of about 126 million people and allows the free movement of factors of production, goods and services among the five member states.

Plans by Southern African Development Community (SADC), EAC and Comesa to form a Free Trade Area (FTA) covering more than 527 million people with an estimated combined gross domestic product of about $624 billion has also enhanced Kenya’s appeal to multinationals as a business hub.

As a result, the multinationals are redrawing their territories, opting to set up regional offices to feed different economies - a move that has seen Nairobi emerge as a city of choice because of its proximity to a wider market including Central Africa, North Africa and Middle East markets.

This move has seen myriad of business executives jet into the country to establish professional and business contacts, make arrangements for investments during the start-up period, arranging deals, negotiating and/or signing trade agreements/contracts; undertaking fact-finding missions; conducting site visits and attending board meetings in Kenya as board-level directors.

Reprieve
Multinationals, especially those in the manufacturing and information sectors also bring technical personnel into the country for short term assignments.

Also technical experts of foreign manufacturers come to Kenya to service or repair its products within their initial period of guarantee; to erect and install machinery too heavy to be delivered in one piece. Such experts would be in the country for 1-2 weeks.

The recently published Citizenship and Immigration Regulations may be a reprieve to multinationals and foreign nationals entering Kenya for short-term assignments.

The new regulations provides for amongst other things the issuance of a special pass at the port of entry, to foreign nationals who wish to be in the country for purposes of employment for a period not exceeding three months.

Previously such persons would be issued with a Visitor’s Pass/Business category and be advised to apply for a special pass at the immigration headquarters.

An application for a special pass lodged at immigration headquarters would be processed within two- three weeks. This would hamper the smooth execution of projects since the experts would be required to stay in the country as visitors until the special pass is issued.

In the event the employer opts for a long term work permit, a work permit application can be lodged and processed within three months.
Mr Nyagah is a tax consultant