Work permit fees grow into Sh8.8 bn cash cow

BDWORKPERMIT

Collections from fees for permits to work in Kenya are expected to grow to Sh8.8 billion in the financial year between July 2023 and June 2024. FILE PHOTO | SHUTTERSTOCK

Collections from fees for permits to work in Kenya are expected to grow to Sh8.8 billion in the financial year between July 2023 and June 2024 even as the number of permits sought continues trending below pre-pandemic levels.

Data from the National Treasury, the State Department for Immigration and Citizen Services is projected to collect Sh8.8 billion worth of work permit fees in 2023/24, an increase of Sh648 million from the amount expected in the current financial year.

The National Bureau of Statistics shows that a total of 7,963 work permits were issued in 2022 up from 5,851 in 2020 but still below the 9,465 and 8,967 issued in 2018 and 2019, respectively.

The number of work permits renewed in 2022 stood at 11,667 compared to 11,395 and 12,160 in 2020 and 2018, respectively.

Data from the National Treasury now shows that work permit fees will account for 48 percent of the total collection from fees registered by the State Department for Immigration and Citizen Services, up from just 20.0 per cent in 2018/19.

Other sources of fees collection for the State Department for Immigration and Citizenship services include immigration visas and other consular services projected to raise Sh5.7 billion in 2023/24 up from Sh4.5 billion in the current financial year as well as passport fees which is expected to generate Sh3.3 billion in 2023/24 up from Sh2.7 billion in 2022/23.

According to official data, the government issued 426,137 passports in 2022, up from 219,090 in 2020 and lower than 446,954 in 2019.

Registration of births and deaths is expected to generate Sh212.2 million in fees in 2023/24 compared to Sh178.5 million in the current financial year while fees from identity cards are projected to stand at Sh118.7 million compared to Sh113.8 million in the current financial year.

The number of applications made for national identity cards increased from 1.1 million in 2021 to 1.2 million in 2022 with the government attributing the increase to mass voter registration in preparation for the 2022 General Election where the national identity card is a requirement.

In total, the State Department for Immigration and Citizen Services is expected to collect Sh18.2 billion in fees in the period between July 2023 and June 2024, a Sh2.5 billion increase from the amount expected for collection in the current financial year.

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