Business Daily (Nairobi)
13 July 2008
editorial
Balancing between investor interest, and protecting labour markets overwhelmed by unemployed youth, has been one of the challenges that are as real in developing countries like Kenya as they are in the developed world.
The only difference is that developed countries tend to have more jobs at their disposal - largely due to demographic factors - than the developing world which is characterised by inadequate investments that would ensure near optimal manpower engagement.
It is therefore not surprising that labour, and recently environmental issues, come to the fore whenever an investment is announced to be earmarked for a certain region.
The thrust is almost invariably the proportion of local jobs created vis-a-vis those reserved for foreigners, usually in the executive suits revolving around strategy and direction such as the managing director and the finance director.
Beyond that, the rule of thumb has been that no foreigner should be granted a work permit for skills that can be competently handled by a local worker.
Neighbouring Tanzania had done well protecting its job market, better than Kenya or Uganda. Irregular work permit issues there have caused several political careers -including that of a sitting prime minister - grief.
While this would be expected to scare away investors, Tanzania has had a better experience in attracting foreign direct investment than both Kenya and Uganda.
In that, is a lesson that investors look at a totality of factors when deciding where to invest rather than one limitation like the number of foreigners one can bring in tow.
The Tanzanian experience - Kenyan companies have been victims of employees being denied work permits there - persuades that Kenya needs to take charge of investor relations.
Complaints of foreigners coming in to take jobs suited for locals are rampant. Investors are able to bribe their way to the hearts of immigration officials and get non essential foreign workers in, thanks to a web of contradictory discretion accorded to politicians and civil servants.
It is one such discretion that has put Immigration minister Otieno Kajwang on the spot.
Calls for the minister to resign over this appear misguided. Available evidence suggests, unlike former finance minister Amos Kimunya who resigned last week over the sale of the Grand Regency, Mr Kajwang followed exemptions granted his office under the law.
The discretion enjoyed by public officials like Mr Kajwang litter virtually all facets of Kenya's legal spectrum. In good governance practices, discretion is reduced to a bare minimum and where it is absolutely necessary, it is exercised in consultation between officials and departments to minimise chances of one palm being greased at the expense of the national good.
Having predictable processes and time frames for various services to be delivered in public offices has been the key drive globally for eliminating graft in awarding vital personal documents like passports, identity cards, work permits and other compliance forms.
Recently enacted laws such as those on capital markets, privatisation, public procurement and environmental management have taken this best practice on board.
However, many laws that came into force earlier are yet to take cognisance of this. It is here, elimination of discretion, that the authorities should start to ensure that opportunities for abuse of office created through red tape do not exist. It calls for a complete review of existing laws and regulations to ensure that only proven skill gaps are filled by expatriates.
But this also needs to be for a limited period of time during which skills should be transferred to locals through an elaborate understudy programme.
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