Leaving Kenya for domestic jobs abroad
Does the state offer protection to its citizens abroad? 31 May 2021
The number of Kenyans standing in line at recruitment agencies in the CBD with the hope of landing domestic jobs in the Gulf states has doubled in the past year.
Economic hardship and the rising unemployment rate among the youth has forced Kenyans to seek greener pastures abroad (particularly in the gulf states).
In 2020 alone, over 300 employment agencies were registered in Kenya to facilitate the placing of Kenyans in domestic jobs abroad. Similarly, there has been increased petitions by distressed workers wishing to return home due to rising incidents of torture, mistreatment and assault.
The National Employment Authority explained that most of the workers facing such brutality are illegally trafficked outside the country. Reports of mistreatment of Kenyan domestic workers in the gulf states led to the ban of Kenyan citizens seeking domestic work in the Middle East in 2021 . However, the ban was lifted in 2017.
Steps made by Kenya to safeguard its citizens :
Kenya has signed bilateral labor agreements with some of the gulf states to curb discrimination of Kenyan domestic workers.
This has led to Saudi Arabia abolishing the ‘kafala’ system meaning that migrant workers can now change jobs and travel indefinitely without the permission of their employers.
Establishment of a vetting committee to approve agencies that recruit domestic workers who seek jobs abroad.
The Insurance Regulatory Authority has announced plans to roll out an insurance cover for domestic workers abroad to improve their welfare.
The Kenya Citizenship and immigration (amendment) bill requires the Cabinet Secretary to establish a voluntary savings scheme for domestic workers abroad.
The main question is, are these steps really enough?
NHIF will not cover Covid-19 treatment for those contributing Monthly premiums of Ksh 500 and less.
The NHIF (National Health Insurance Fund) chair announced that NHIF would only cover Covid-19 treatment for county employees, civil servants, those paying premiums of Ksh 1,700 a month and members under enhanced schemes. The fund attributes this decision to the high treatment costs for Covid-19.
This decision goes against the primary aim of the fund which is to provide accessible and quality healthcare to all citizens, particularly the low income earners who remit ksh 500 or less to the fund.
Last week’s newsletter discussed the fact if the NHIF amendment bill passes in parliament, employers will be required to match their employees contributions to the fund.
This would mean more funds being remitted to NHIF. With the potential of access to more funds, it is interesting that NHIF would now deny medical cover to Kenyans who need it the most.
MARKETS
Serena Hotel posted a net loss of 1.2 billion Kenya shillings for the year 2020. The loss is attributed to worldwide travel restrictions imposed last year. However, the management is hopeful that there will be recovery in the third quarter of the year.
Student hostel developer Acorn holdings will now resume the construction of Qwetu hostels near United States International University.
This is after the National Construction Authority gave the constructor approval to continue after a month of investigations into the accidents at the site that led to two fatalities.
Loaning Situation in Kenya
Here is a breakdown of some of the funds Kenya is set to receive in the coming weeks
A loan of 750 Million dollars from the World Bank to support Kenya’s Ksh 3.5 trillion budget for the year 2021/2022. (Disclosed by the Governor, Central bank of Kenya)
410 million dollars of the expected US$ 2.34 billion from the International Monetary Fund (IMF) for economic recovery.
The government of Kenya plans to float a dollar bond worth US$ 1 Billion in June to settle public debt.
LAW
1. The High court nullifies appointment of several parastatal heads made by the president in 2018
Last week, the high court quashed several appointments of parastatal heads made by the President, declaring them unconstitutional and against article 232 of the Constitution.
Breakdown of the ruling:
The appointments were against the principles and values set out in article 232 of the Constitution.
The appointments lacked representation of Kenya’s diversity (in terms of women representation, ethnic groups, youth and persons with disability)
The appointment process lacked transparency and competitiveness.
Things to note : 129 parastatal heads have been rendered jobless. Most of the appointees were politicians who lost positions in the last election and their family members.
2. This week, a three judge bench will hold a case management conference on the BBI appeal.
The case management shall provide an opportunity for the judges to give appropriate directions on various issues including if the court will hear the substantive appeal or applications for stay.
LEXO to set up electric charging stations in Kenya
Lexo energy plans to install electric charging stations in Kenya. The company recently obtained a $14.2 million (KSh1.5 billion) loan from the International Finance Corporation (IFC) for this purpose.
This coincides with the government’s plan to increase the number of electric vehicles in the country to 5% of vehicles by 2025. KPLC (Kenya Power and Lighting Company) and KenGen have also made plans to install electric charging stations throughout the country.
KLM to launch direct flight to Mombasa
KLM plans to launch direct flights from Amsterdam to Mombasa from October this year. The flight will target leisure travellers as the tourism industry is expected to pick in the coming months as summer approaches.
There will be 2 flights a week, on Thursday and on Sunday. Ticket bookings for these flights began last week.
Other ConversationStarters
Justice Daniel Musinga has been elected the president of the Court of appeal.
Pangea (a Norwegian accelerator program) has launched a scale-up program in Kenya offering private funding of up to KSH 300 million and business support to enable locally funded start-ups in Kenya accelerate their enterprises.
The Kenya Railway Corporation is set to begin hourly rides in Nairobi following the delivery of 6 trains from Spain. The trains will run services across the city on Nairobi-Embakasi, Nairobi-Kikuyu, Nairobi-Ruiru, Nairobi-Syokimau and Athi River- Nairobi route.
